Summit Hotel Properties, Inc. (NYSE:INN) Q3 2023 Earnings Conference Call November 2, 2023 1:00 PM ET

Company Participants

Adam Wudel - Senior Vice President, Finance, Capital Market and Treasurer

Jon Stanner - President and Chief Executive Officer

Trey Conkling - Executive Vice President and Chief Financial Officer

Conference Call Participants

Austin Wurschmidt - KeyBanc Capital Markets

Michael Bellisario - Baird

Chris Woronka - Deutsche Bank

Bill Crow - Raymond James

Operator

Good day and thank you for standing by. Welcome to the Summit Hotel Properties Q3 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I’d now like to hand the conference over to your speaker today, Adam Wudel, Senior Vice President of Finance, Capital Market and Treasurer. Please go ahead.

Adam Wudel

Thank you, Victor, and good morning. I am joined today by Summit Hotel Properties President and Chief Executive Officer, Jon Stanner, and Executive Vice President and Chief Financial Officer, Trey Conkling.

Please note that many of our comments today are considered forward-looking statements as defined by federal securities laws. These statements are subject to risks and uncertainties, both known and unknown, as described in our SEC filings. Forward-looking statements that we make today are effective only as of today, November 2, 2023, and we undertake no duty to update them later. You can find copies of our SEC filings and earnings release, which contain reconciliations to non-GAAP financial measures referenced on this call on our website at www.shpreit.com.

Please welcome Summit Hotel Properties President and CEO, Jon Stanner.

Jon Stanner

Thanks, Adam, and thank you all for joining us today for our third quarter 2023 earnings conference call. We were pleased with our third quarter results as pro forma RevPAR increased 2.4% compared to the third quarter of last year, driving a 2.6% increase in hotel EBITDA and essentially unchanged operating margins. Accelerating urban and midweek demand led by improving business transient and strong group trends as well as continued outperformance within the NCI portfolio served as our primary growth catalyst in the quarter.

Urban and midweek demand trends in September and October were particularly strong, which resulted in September RevPAR growth of 3.6% and October is expected to finish generally in line with September, a reacceleration from July and August, more modest growth levels. RevPAR trends during those peak summer months were pressured by difficult year-over-year comparisons as leisure demand normalized and outbound travel to Europe search.