Summit Hotel Properties, Inc. (NYSE:INN) Q4 2022 Results Conference Call February 28, 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

Austin Wurschmidt - KeyBank Capital Market

William Crow - Raymond James

Michael Bellisario - Robert W. Baird

Operator

Good day, and thank you for standing by. Welcome to the Summit Hotel Properties Q4, 2022 and Full-year 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, Senior Vice President of Finance, Capital Markets and Treasurer. Please go ahead.

Adam Wudel

Thank you, Kevin, and good morning. I’m joined today by Summit Hotel Properties’ President and Chief Executive Officer, Jon Stanner; and Executive Vice President and CFO, 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, February 28, 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 fourth quarter and full-year 2022 earnings conference call.

2022 was a year of meaningful growth for Summit as we augmented rapidly accelerating operating fundamentals with the acquisition of more than $900 million of high-quality hotels, reinstated our quarterly dividend and made our initial strategic investment in the high growth Glamping segment.

Today, Trey and I will discuss our results from last year, our outlook for this year and how our recent transaction activity position Summit to continue to be a leader in the lodging recovery. Overall, we were extremely pleased with the improving operating trends throughout our portfolio, which exceeded our expectations for the year.

Pro forma RevPAR increased 38% year-over-year, driven by a 10% increase in and a 26% increase in average rate. In our portfolio of 92 hotels with comparable 2019 data, RevPAR recaptured 90% of 2019 levels and 85% of 2019 EBITDA levels led by average rates, which exceeded 2019 by 2%. Importantly, these RevPAR recapture rates improved sequentially each quarter from 80% in the first quarter to a post pandemic high of 97% in the fourth quarter.