Summit Hotel Q2 revenue edges past estimates on higher rates; forecast raised
INN•Outlook
- Summit Hotel Properties raises 2026 pro forma RevPAR growth outlook to 1.75%-3.25%
- Company now sees 2026 Adjusted EBITDAre of $175 mln-$182 mln
- 2026 Adjusted FFO forecast raised to $95.5 mln-$103 mln; Adjusted FFO per share $0.79-$0.85
Overview
- U.S. lodging REIT's Q2 revenue slightly beat analyst expectations, rising 3% yr/yr
- Pro forma RevPAR rose 5% on strong average daily rate growth
- Company refinanced $650 mln credit facility and sold two hotels to reduce leverage
Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Slight Beat* | $199.02 mln | $198.41 mln (4 Analysts) |
| Q2 EPS | $0.04 | ||
| Q2 Net Income | $3.87 mln | ||
| Q2 Adjusted FFO Per Share | $0.29 | ||
| Q2 FFO Per Share | $0.27 | ||
| Q2 Hotel EBITDA Margin | 36.40% | ||
| Q2 RevPAR | $136.06 |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell". The average consensus recommendation for the specialized REITs peer group is "buy." Wall Street's median 12-month price target for Summit Hotel Properties Inc is $6.25, about 9.3% below its August 4 closing price of $6.89.
