Summit Hotel Properties Guides 2026 RevPAR Growth While Q4 RevPAR Index Jumps 220 bps
Summit Hotel Properties’ fourth-quarter same-store RevPAR declined 1.8%, yet excluding a 20% drop in government and international travel it rose 60 basis points and the RevPAR index climbed 220 basis points to 117. The company guided 2026 RevPAR growth of 0–3%, adjusted EBITDA of $167M–$181M and FFO of $0.73–$0.85.
1. Fourth-Quarter Operating Trends
Summit reported a fourth-quarter same-store RevPAR decline of 1.8%, with occupancy down 0.7% and ADR off 1.1%. Excluding a 20% drop in government and inbound international travel, RevPAR rose 60 basis points and the company’s RevPAR index improved by 220 basis points to 117, signaling market share gains.
2. 2026 Financial Guidance
The company forecasts 2026 RevPAR growth of 0%–3%, adjusted EBITDA of $167 million to $181 million, and adjusted FFO of $0.73 to $0.85 per share. Management expects a 50–75 basis-point tailwind from the FIFA World Cup but cautions that the first quarter will be the most challenging.
3. Capital Recycling and Debt Actions
Summit sold three non-core hotels for $51.3 million of gross proceeds and drew a $275 million delayed-draw term loan to retire convertible notes. These actions leave no debt maturities until 2028 at an average interest rate of about 5.5%, and the board set a quarterly dividend of $0.08 (annualized yield ~7.7%).
4. Market Share and Regional Performance
Management highlighted strength in key markets: San Francisco RevPAR grew over 40% year-over-year, Orlando increased 9% driven by leisure and group demand, and South Florida RevPAR rose 4%. The company noted enhanced performance at newly renovated properties and an improving business transient mix.