Summit Hotel Properties, Inc. (NYSE:INN) Q1 2023 Results Conference Call May 4, 2023 9:00 AM ET

Company Participants

Adam Wudel - Senior Vice President of Finance, Capital Markets and Treasurer

Jon Stanner - President and Chief Executive Officer

Trey Conkling - Executive Vice President and Chief Financial Officer

Conference Call Participants

Chris Woronka - Deutsche Bank

Operator

Good day, and thank you for standing by. Welcome to the Summit Hotel Properties, Inc. Q1 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded.

I would now like to hand the conference over to your speaker today, Adam Wudel, SVP of Finance Capital Markets and Treasurer.

Adam Wudel

Thank you, Tanya, 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, May 4, 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 first quarter 2023 earnings conference call. Overall, we were pleased with our first quarter performance as pro forma RevPAR increased 19.3% compared to the first quarter of last year, which exceeded the high-end of our 17% to 19% growth expectations for the quarter. RevPAR growth was driven by a 7% increase in occupancy and an 11% increase in average rate over last year as we continue to benefit from having broad pricing power across our portfolio.

Average rates in our pro forma portfolio surpassed 2019 levels in each month of the quarter by more than $10 on average and increased nearly 8% year-over-year in March despite being out of the easier Omicron variant influence comparisons of January and February. In fact, March ADR was the highest in the history of the Company and drove the highest RevPAR for our portfolio since the onset of the pandemic.