Summit Hotel Properties, Inc. (NYSE:INN) Q4 2023 Earnings Conference Call February 29, 2024 9:00 AM ET

Company Participants

Adam Wudel - SVP, Finance, Capital Market and Treasurer

Jon Stanner - President and CEO

Trey Conkling - EVP and CFO

Conference Call Participants

Austin Wurschmidt - KeyBanc Capital Markets

Michael Bellisario - Baird

Bill Crow - Raymond James

Chris Woronka - Deutsche Bank

Operator

Good day, and thank you for standing by. Welcome to the Summit Hotel Properties Q4 2023 and Full Year Conference Call. [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, Dede, 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, February 29, 2024, 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 2023 earnings conference call.

2023 proved to be another highly successful year for Summit, culminating with strong fourth quarter results. For the full year, RevPAR increased 6.6%, which outpaced the broader industry by 170 basis points, and resulted in hotel EBITDA and adjusted EBITDAre growth of approximately 6% and 5%, respectively.

We continue to enhance the overall quality of our portfolio through strategic acquisitions while disposing of non-core assets with meaningful near term capital investment needs, and we have methodically refinanced approximately $1 billion in bank debt over the past 10 months, further improving the balance sheet and our ability to execute on important strategic initiatives.

Today, Trey and I will discuss our 2023 financial results, our outlook for 2024, and how our recent capital allocation and balance sheet activities position Summit for growth moving forward. Fundamentals continue to improve across our portfolio in 2023 as RevPAR across all segments experienced positive growth despite the normalization of leisure travel witnessed throughout the year, most notably in the summer months.