Summit Hotel Properties Raises 2026 Outlook as Q3 RevPAR Rises 7.2%

Summit Hotel Properties Inc. (NYSE: INN) raised both ends of several full-year 2026 guidance ranges after third-quarter hotel revenue per available room and property-level earnings increased, supported by higher room rates and occupancy across its 92-hotel pro forma portfolio.

The hotel real estate investment trust now expects full-year pro forma RevPAR growth of 3.5% to 4.5%. Adjusted EBITDAre is projected at $181 million to $186 million, while adjusted FFO is expected to range from $102.5 million to $107.5 million. Adjusted FFO per share and unit is forecast at $0.85 to $0.89.

Compared with the prior guidance midpoints, the new ranges represent increases of $5 million for adjusted EBITDAre, $5.75 million for adjusted FFO and $0.05 for adjusted FFO per share and unit. Summit attributed the changes to results for the first nine months and recent operating trends.

The outlook assumes no additional acquisitions, dispositions, share repurchases or capital-markets activity. Pro rata capital expenditures remain projected at $55 million to $65 million.

RevPAR and hotel margins strengthen

Third-quarter total revenue increased 4.8% to $185.7 million from $177.1 million a year earlier. The net loss attributable to common stockholders narrowed to $7.7 million, or $0.07 per diluted share, from $11.3 million, or $0.11 per share.

Adjusted EBITDAre rose 11.8% to $43.9 million. Adjusted FFO increased to $24.2 million from $21.3 million, while adjusted FFO per diluted share and unit advanced to $0.20 from $0.17. These measures are non-GAAP and may not be directly comparable with similarly named metrics reported by other companies.

Across the 92 hotels included in Summit’s pro forma results, RevPAR rose 7.2% to $126.17. The increase reflected a 5.3% gain in average daily rate to $167.95 and an improvement in occupancy to 75.1% from 73.8%.

Pro forma hotel EBITDA climbed 14.4% to $60.4 million, outpacing the increase in hotel revenue. The hotel EBITDA margin expanded by 191 basis points to 32.6% from 30.7%.

All three ownership groups posted RevPAR growth. RevPAR increased 6.5% at Summit’s 50 wholly owned hotels and 8.1% at the 39 hotels in its GIC joint venture. The three properties in other joint ventures recorded an 11.7% increase, driven by a 12.3% rise in average daily rate despite slightly lower occupancy.

For the first nine months of 2026, total revenue rose to $569.8 million from $554.5 million. Adjusted EBITDAre increased to $142.9 million from $135.2 million, and adjusted FFO reached $84.6 million, compared with $81.3 million. Adjusted FFO per diluted share and unit was $0.70, up from $0.66.

Nine-month pro forma RevPAR increased 4% to $129.91, primarily reflecting a 4.5% increase in average daily rate as occupancy edged down to 74.4% from 74.7%. Pro forma hotel EBITDA rose 5.9% to $195.2 million, with margin expanding 40 basis points to 34.5%.

Debt remains sensitive to interest rates

Summit reported $1.38 billion of consolidated debt at September 30 and pro rata debt of $1.06 billion after adjusting for noncontrolling interests. Before interest-rate swaps, 99% of pro rata debt was variable-rate. Including swaps, 51% was fixed and 49% was variable, with an effective pro rata interest rate of 5.50%.

The company had $61.3 million of consolidated unrestricted cash at quarter-end. Its pro rata debt maturity schedule shows no maturities in 2026 or 2027, assuming all extension options are exercised, followed by $127.5 million in 2028 and $200 million in 2029.

Summit cautioned that its outlook remains exposed to economic conditions affecting lodging demand, interest rates, capital-market availability and real estate values. Other identified uncertainties include its ability to refinance debt, execute acquisitions and dispositions, manage relationships with hotel operators and franchisors, maintain REIT status and fund future stockholder distributions.