INN 10-Q

Summit Hotel Properties, Inc. (INN)

10-Q 2026-08-05 For: 2026-06-30

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Added on August 05, 2026

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Maryland						27-2962512
(State or other jurisdiction						(I.R.S. Employer Identification No.)
of incorporation or organization)


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			☐


		Page
PART I — FINANCIAL INFORMATION

Item 1.	Financial Statements

	Condensed Consolidated Balance Sheets — June 30, 2026 (Unaudited) and December 31, 2025	1
	Condensed Consolidated Statements of Operations (Unaudited) — Three and Six Months Ended June 30, 2026 and 2025	2
	Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) — Three and Six Months Ended June 30, 2026 and 2025	3
	Condensed Consolidated Statements of Changes in Equity and Redeemable Non-controlling Interests (Unaudited) — Three and Six Months Ended June 30, 2026 and 2025	4
	Condensed Consolidated Statements of Cash Flows (Unaudited) — Six Months Ended June 30, 2026 and 2025	6
	Notes to the Condensed Consolidated Financial Statements (Unaudited)	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	51

Item 4.	Controls and Procedures	52

PART II — OTHER INFORMATION

Item 1.	Legal Proceedings	53

Item 1A.	Risk Factors	53

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	53

Item 3.	Defaults Upon Senior Securities	53

Item 4.	Mine Safety Disclosures	53

Item 5.	Other Information	53

Item 6.	Exhibits	54


	June 30, 2026		December 31, 2025
	(Unaudited)
ASSETS
Investments in lodging property, net	$	2,570,706	$	2,640,367


Assets held for sale, net	18,413		11,967

Cash and cash equivalents	36,933		36,110
Restricted cash	5,531		5,102
Right-of-use assets, net	31,662		32,028
Trade receivables, net	22,213		17,347
Prepaid expenses and other	14,068		7,104

Deferred charges, net	6,064		10,051

Other assets	22,604		15,954
Total assets	$	2,728,194	$	2,776,030

LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY
Liabilities:
Debt, net of debt issuance costs	$	1,371,470	$	1,394,014
Lease liabilities, net	23,971		24,091
Accounts payable	7,876		7,537
Accrued expenses and other	83,622		76,417

Total liabilities	1,486,939		1,502,059

Commitments and contingencies (Note 11)	—		—

Redeemable non-controlling interests	50,219		50,219
Equity:
Preferred stock, $0.01 par value per share, 100,000,000 shares authorized:


6.25% Series E - 6,400,000 shares issued and outstanding at June 30, 2026 and December 31, 2025 (aggregate liquidation preference of $160,861 at June 30, 2026 and December 31, 2025, respectively)	64		64
5.875% Series F - 4,000,000 shares issued and outstanding at June 30, 2026 and December 31, 2025 (aggregate liquidation preference of $100,506 at June 30, 2026 and December 31, 2025, respectively)	40		40
Common stock, $0.01 par value per share, 500,000,000 shares authorized, 107,854,017 and 108,798,686 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	1,079		1,088
Additional paid-in capital	1,260,506		1,264,470
Accumulated other comprehensive income	6,306		2,115
Accumulated deficit and distributions in excess of retained earnings	(429,048)		(405,622)
Total stockholders’ equity	838,947		862,155


Non-controlling interests	352,089		361,597
Total equity	1,191,036		1,223,752
Total liabilities, redeemable non-controlling interests and equity	$	2,728,194	$	2,776,030


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Revenues:
Room	$	176,137	$	170,599	$	338,701	$	334,330
Food and beverage	11,098		11,195		22,558		22,185
Other	11,784		11,123		22,813		20,880
Total revenues	199,019		192,917		384,072		377,395

Expenses:
Room	39,352		39,166		75,699		75,298
Food and beverage	8,480		8,388		17,000		16,379
Other lodging property operating expenses	60,671		58,943		119,321		115,865
Property taxes, insurance and other	13,571		13,706		27,455		27,017
Management fees	4,366		4,411		8,587		8,906
Depreciation and amortization	36,413		37,259		73,187		74,489
Corporate general and administrative	7,415		8,280		16,260		16,851


Loss on write-down of assets	—		—		3,641		—

Total expenses	170,268		170,153		341,150		334,805
Gain (loss) on disposal of assets, net	134		(80)		94		(79)

Operating income	28,885		22,684		43,016		42,511

Other income (expense):
Interest expense	(22,068)		(20,628)		(42,518)		(40,584)
Interest income	301		301		547		577


Other income, net	1,187		858		2,239		2,088
Total other expense, net	(20,580)		(19,469)		(39,732)		(37,919)
Income from continuing operations before income taxes	8,305		3,215		3,284		4,592
Income tax benefit (expense) (Note 13)	1,430		(1,178)		538		(1,932)
Net income	9,735		2,037		3,822		2,660
Less - Income (loss) attributable to non-controlling interests	1,243		(976)		1,144		(296)


Net income attributable to Summit Hotel Properties, Inc. before preferred dividends	8,492		3,013		2,678		2,956
Less - Distributions to and accretion of redeemable non-controlling interests	(657)		(657)		(1,314)		(1,314)
Less - Preferred dividends	(3,968)		(3,968)		(7,938)		(7,938)

Net income (loss) attributable to common stockholders	$	3,867	$	(1,612)	$	(6,574)	$	(6,296)

Income (loss) per common share:
Basic	$	0.04	$	(0.02)	$	(0.06)	$	(0.06)
Diluted	$	0.04	$	(0.02)	$	(0.06)	$	(0.06)
Weighted-average common shares outstanding:
Basic	104,768		107,633		105,241		107,820
Diluted	106,181		107,633		105,241		107,820


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Redeemable Non-controlling Interests		Shares of Preferred Stock	Preferred Stock		Shares of Common Stock	Common Stock		Additional Paid-In Capital		Accumulated Comprehensive Income (Loss)		Accumulated Deficit and Distributions		Stockholders’ Equity		Non-controlling Interests		Total Equity
Balance at March 31, 2026	$	50,219	10,400,000	$	104	108,414,307	$	1,084	$	1,259,345	$	4,265	$	(424,392)	$	840,406	$	358,995	$	1,199,401

Adjustment of redeemable non-controlling interests to redemption value	657		—	—		—	—		—		—		(657)		(657)		—		(657)



Repurchase of common shares	—		—	—		(48,936)	—		(208)		—		—		(208)		—		(208)


Dividends and distributions on common stock and common units	—		—	—		—	—		—		—		(8,523)		(8,523)		(1,041)		(9,564)
Preferred dividends and distributions	(657)		—	—		—	—		—		—		(3,968)		(3,968)		(113)		(4,081)

Joint venture partner distributions	—		—	—		—	—		—		—		—		—		(7,957)		(7,957)
Equity-based compensation	—		—	—		(511,354)	(5)		1,431		—		—		1,426		—		1,426

Other comprehensive income	—		—	—		—	—		—		2,041		—		2,041		962		3,003
Net income	—		—	—		—	—		—		—		8,492		8,492		1,243		9,735
Other	—		—	—		—	—		(62)		—		—		(62)		—		(62)
Balance at June 30, 2026	$	50,219	10,400,000	$	104	107,854,017	$	1,079	$	1,260,506	$	6,306	$	(429,048)	$	838,947	$	352,089	$	1,191,036

Balance at March 31, 2025	$	50,219	10,400,000	$	104	112,221,768	$	1,122	$	1,273,164	$	6,453	$	(360,404)	$	920,439	$	397,179	$	1,317,618

Adjustment of redeemable non-controlling interests to redemption value	657		—	—		—	—		—		—		(657)		(657)		—		(657)



Contributions by non-controlling interest in joint venture	—		—	—		—	—		—		—		—		—		343		343
Repurchase of common shares	—		—	—		(3,585,179)	(36)		(15,366)		—		—		(15,402)		—		(15,402)


Dividends and distributions on common stock and common units	—		—	—		—	—		—		—		(8,863)		(8,863)		(1,041)		(9,904)
Preferred dividends and distributions	(657)		—	—		—	—		—		—		(3,968)		(3,968)		(150)		(4,118)
Joint venture partner distributions	—		—	—		—	—		—		—		—		—		(11,174)		(11,174)
Equity-based compensation	—		—	—		175,154	2		2,787		—		—		2,789		—		2,789
Shares of common stock acquired for employee withholding requirements	—		—	—		(235)	—		—		—		—		—		—		—
Other comprehensive loss	—		—	—		—	—		—		(2,053)		—		(2,053)		(365)		(2,418)
Net income (loss)	—		—	—		—	—		—		—		3,013		3,013		(976)		2,037
Other	—		—	—		—	—		(152)		—		—		(152)		—		(152)
Balance at June 30, 2025	$	50,219	10,400,000	$	104	108,811,508	$	1,088	$	1,260,433	$	4,400	$	(370,879)	$	895,146	$	383,816	$	1,278,962


Summit Hotel Properties, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands)
	Six Months Ended June 30,
	2026		2025
OPERATING ACTIVITIES
Net income	$	3,822	$	2,660
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	73,187		74,489
Amortization of debt issuance costs	3,916		3,350
Loss on write-down of assets	3,641		—

Equity-based compensation	3,427		4,705
Deferred tax (benefit) expense	(963)		1,168

(Gain) loss on disposal of assets, net	(94)		79


Debt transaction costs	—		15
Other	659		445
Changes in operating assets and liabilities:

Trade receivables, net	(5,147)		(4,054)
Prepaid expenses and other	(7,119)		(4,669)
Accounts payable	(326)		(1,441)
Accrued expenses and other	8,435		(2,061)
NET CASH PROVIDED BY OPERATING ACTIVITIES	83,438		74,686
INVESTING ACTIVITIES

Improvements to lodging properties	(23,618)		(34,570)
Investment in lodging property under development	—		(5,647)


Proceeds from asset dispositions, net	12,011		1,243
Purchase of undeveloped land parcel	(1,412)		—



Other	—		(128)
NET CASH USED IN INVESTING ACTIVITIES	(13,019)		(39,102)
FINANCING ACTIVITIES
Proceeds from borrowings on revolving line of credit	55,000		55,000
Repayments of revolving line of credit borrowings	(50,000)		(40,000)
Proceeds from mortgage loan	—		58,000
Repayment of mortgage loan	—		(45,433)
Scheduled principal payments on mortgage debt	(259)		(872)

Repurchases of common shares	(6,181)		(15,402)
Proceeds from term loan	275,000		—
Repayment on Convertible Notes	(287,500)		—
Repayment of term loan	(7,300)		—
Common dividends and distributions paid	(19,181)		(19,740)
Preferred dividends and distributions paid	(9,365)		(9,402)
Contributions by non-controlling interests in joint venture	—		754

Distributions to joint venture partners	(10,499)		(11,605)
Financing fees, debt transaction costs and other issuance costs	(7,988)		(5,432)
Repurchase of common stock for tax withholding requirements	(894)		(1,586)

NET CASH USED IN FINANCING ACTIVITIES	(69,167)		(35,718)
Net change in cash, cash equivalents and restricted cash	1,252		(134)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Beginning of period	41,212		48,358
End of period	$	42,464	$	48,224

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH WITHIN THE CONDENSED CONSOLIDATED BALANCE SHEET TO THE AMOUNTS SHOWN IN THE STATEMENT OF CASH FLOWS ABOVE:
Cash and cash equivalents	$	36,933	$	39,490
Restricted cash	5,531		8,734
TOTAL CASH, CASH EQUIVALENTS AND RESTRICTED CASH	$	42,464	$	48,224


Classification						Estimated Useful Lives
Buildings and improvements						6 to 40 years
Furniture, fixtures and equipment						2 to 15 years


	June 30, 2026		December 31, 2025
Lodging buildings and improvements	$	2,869,352	$	2,885,464
Land	408,960		410,692
Furniture, fixtures and equipment	306,244		308,621
Construction in progress	26,502		26,111
Intangible assets	32,142		32,267
Real estate development loan	4,576		4,576
	3,647,776		3,667,731
Less accumulated depreciation and amortization	(1,077,070)		(1,027,364)
	$	2,570,706	$	2,640,367


	June 30, 2026			December 31, 2025
Courtyard by Marriott and Residence Inn - Dallas (Arlington South), TX	$	18,413	(1)	$	—

Hilton Garden Inn - Longview, TX	—			11,967		(1)
	$	18,413		$	11,967


	June 30, 2026		December 31, 2025
Indefinite-lived intangible assets:
Air rights	$	10,754	$	10,754
Other	80		80
	10,834		10,834
Finite-lived intangible assets:

Tax incentives	12,063		12,063
Key money	9,245		9,370


	21,308		21,433
Intangible assets	32,142		32,267
Less - accumulated amortization	(7,927)		(7,255)
Intangible assets, net	$	24,215	$	25,012


For the Year Ending December 31,	Amount
2026	$	776
2027	1,501
2028	1,016
2029	1,016
2030	1,016
Thereafter	8,056
	$	13,381


	June 30, 2026		December 31, 2025
Revolving debt	$	130,000	$	125,000
Term loans	1,183,430		915,730
Convertible notes	—		287,500
Mortgage loans	75,654		75,913
	1,389,084		1,404,143
Unamortized debt issuance costs (1)	(17,614)		(10,129)
Debt, net of debt issuance costs	$	1,371,470	$	1,394,014


	June 30, 2026		Percentage	December 31, 2025		Percentage
Fixed-rate debt (1)	$	700,654	50%	$	988,413	70%
Variable-rate debt	688,430		50%	415,730		30%
	$	1,389,084		$	1,404,143


	June 30, 2026				December 31, 2025
	Carrying Value		Fair Value		Carrying Value		Fair Value		Valuation Technique
Convertible notes	$	—	$	—	$	287,500	$	287,500	Level 1 - Market approach
Mortgage loans	17,654		17,567		17,913		17,849		Level 2 - Market approach
	$	17,654	$	17,567	$	305,413	$	305,349


							Notional Amount				Fair Value
Contract Date	Effective Date		Expiration Date	Average Annual Effective Fixed Rate			June 30, 2026		December 31, 2025		June 30, 2026		December 31, 2025
Operating Partnership:


July 26, 2022	January 31, 2023		January 31, 2027	2.60	%		$	100,000	$	100,000	$	728	$	816
July 26, 2022	January 31, 2023		January 31, 2029	2.56	%		100,000		100,000		3,305		2,161
June 5, 2025	June 2, 2025		May 15, 2028	3.57	%		58,000		58,000		384		(404)
November 17, 2025	December 31, 2025		December 31, 2027	3.31	%		125,000		125,000		1,175		(109)
Total Operating Partnership							383,000		383,000		5,592		2,464

GIC Joint Venture:
March 24, 2023	July 1, 2023		January 13, 2026	3.35	%		—		100,000		—		12
March 24, 2023	July 1, 2023		January 13, 2026	3.35	%		—		100,000		—		12
January 19, 2024	October 1, 2024		January 13, 2026	3.77	%		—		100,000		—		(2)
August 25, 2025	January 13, 2026	(2)	January 13, 2028	3.26	%		150,000		150,000		1,558		(4)
August 25, 2025	January 13, 2026	(2)	January 13, 2028	3.27	%		150,000		150,000		1,548		(17)
Total GIC Joint Venture							300,000		600,000		3,106		1
Total				3.10	%	(1)	$	683,000	$	983,000	$	8,698	$	2,465


	Fair Value Measurements at June 30, 2026 using
	Level 1		Level 2		Level 3		Total
Assets:
Interest rate swaps	$	—	$	8,698	$	—	$	8,698
Onera Purchase Option	—		—		931		931


	Fair Value Measurements at December 31, 2025 using
	Level 1		Level 2		Level 3		Total
Assets:
Interest rate swaps	$	—	$	3,001	$	—	$	3,001
Onera Purchase Option	—		—		931		931
Liabilities:
Interest rate swaps	—		536		—		536


Estimated equity value	$	3,300,000
Weighted average cost of capital	13.00		%
Expected volatility	12.80		%
Risk free rate	3.42		%

Term (1)	1.08 years


	Number of Shares	Weighted-Average Grant Date Fair Value		Aggregate Current Value
		(per share)		(in thousands)
Non-vested at December 31, 2025	1,386,182	$	6.73	$	6,751
Granted	865,706	4.13
Vested	(493,127)	7.02
Forfeited	(240,049)	5.23
Non-vested at June 30, 2026	1,518,712	$	5.39	$	10,646


	Number of Shares	Weighted-Average Grant Date Fair Value (1)		Aggregate Current Value
		(per share)		(in thousands)
Non-vested at December 31, 2025	1,509,788	$	8.26	$	7,353
Granted	825,498	4.40

Forfeited	(853,556)	8.11
Non-vested at June 30, 2026	1,481,730	$	6.19	$	10,387


Management Company	Number of Properties	Number of Guestrooms
Affiliates of Aimbridge Hospitality, LLC	48	7,323
OTO Development, LLC	11	1,560

Affiliates of Magna Hospitality Group, L.C.	10	1,619
Stonebridge Realty Advisors, Inc. and affiliates	7	1,042
Crestline Hotels & Resorts, LLC	7	927
Affiliates of Marriott, including Courtyard Management Corporation, SpringHill SMC Corporation and Residence Inn by Marriott, Inc.	3	413
White Lodging Services Corporation	2	453
Hersha Hospitality Management	2	338




MIA Hospitality Management, LLC	2	264
InterContinental Hotel Group Resources, Inc., an affiliate of IHG	1	252
Blink Data Services, LLC	1	35
Total	94	14,226


Franchise/Brand	Number of Lodging Properties	Number of Guestrooms
Marriott
Courtyard by Marriott	14	2,618
Residence Inn by Marriott	16	2,256
AC Hotel by Marriott	6	1,026
SpringHill Suites by Marriott	6	775
TownePlace Suites	2	225
Marriott	1	165
Fairfield Inn & Suites by Marriott	1	140
Element by Marriott	1	108

Total Marriott	47	7,313
Hilton
Hampton Inn & Suites	9	1,412
Hilton Garden Inn	7	1,102
Homewood Suites	3	369
Embassy Suites	2	346
Canopy Hotel	2	326

DoubleTree by Hilton	1	210
Total Hilton	24	3,765
Hyatt
Hyatt Place	13	1,893
Hyatt House	3	466
Total Hyatt	16	2,359
IHG
Holiday Inn Express & Suites	3	471

Staybridge Suites	1	121
Hotel Indigo	1	117
Total IHG	5	709
Independent
Nordic Lodge	1	45
Onera	1	35
Total Independent	2	80
Total	94	14,226


	Three Months Ended June 30,												Quarter-over-Quarter				Quarter-over-Quarter
	2026						2025						Dollar Change				Percentage Change
	Total Portfolio (94 properties)			Same-Store (1) Portfolio (94 properties)			Total Portfolio (97 properties)			Same-Store Portfolio (94 properties)			Total Portfolio (94/97 properties)		Same-Store Portfolio (94 properties)		Total Portfolio (94/97 properties)		Same-Store Portfolio (94 properties)
Revenues:
Room	$	176,137		$	176,137		$	170,599		$	167,436		$	5,538	$	8,701	3.2	%	5.2	%
Food and beverage	11,098			11,098			11,195			10,904			(97)		194		(0.9)	%	1.8	%
Other	11,784			11,784			11,123			10,902			661		882		5.9	%	8.1	%
Total	$	199,019		$	199,019		$	192,917		$	189,242		$	6,102	$	9,777	3.2	%	5.2	%

Expenses:
Room	$	39,352		$	39,350		$	39,166		$	38,502		$	186	$	848	0.5	%	2.2	%
Food and beverage	8,480			8,480			8,388			8,140			92		340		1.1	%	4.2	%
Other lodging property operating expenses	60,671			60,677			58,943			57,541			1,728		3,136		2.9	%	5.5	%
Total	$	108,503		$	108,507		$	106,497		$	104,183		$	2,006	$	4,324	1.9	%	4.2	%

Operational Statistics:
Occupancy	76.3		%	76.3		%	77.7		%	77.7		%	n/a		n/a		(1.9)	%	(1.9)	%
ADR	$	178.42		$	178.42		$	165.70		$	166.63		$	12.72	$	11.79	7.7	%	7.1	%
RevPAR	$	136.06		$	136.06		$	128.79		$	129.54		$	7.27	$	6.52	5.6	%	5.0	%


Period	Total Shares Purchased	Weighted Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in thousands)



April 1, 2026 - April 30, 2026	48,936	$	4.27	48,936	$	28,416
May 1, 2026 - May 31, 2026	—	$	—	—	$	28,416
June 1, 2026 - June 30, 2026	—	$	—	—	$	28,416






Total	48,936			48,936


Exhibit Number						Description of Exhibit
10.1						Second Amended and Restated Credit Agreement dated June 29, 2026 among Summit Hotel OP, LP, as borrower, Summit Hotel Properties, Inc., as parent guarantor, each party executing the credit facility documentation as a subsidiary guarantor, Bank of America, N.A., as administrative agent, and the lenders party to the Second Amended and Restated Credit Agreement (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on June 30, 2026).
10.2†						Separation and Consulting Agreement (T. Conkling)
31.1†						Certification of principal executi ve officer of Summit Hotel Properties, Inc. pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2†						Certification of p rincipal f inancial o fficer of Summit Hotel Properties, Inc. pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1††						Certification of principal execu tive officer of Summit Hotel Properties, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2††						Certification of p rincipal f inancial o fficer of Summit Hotel Properties, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS						The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
101.SCH						Inline XBRL Taxonomy Extension Schema Document (1)
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document (1)
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document (1)
101.LAB						Inline XBRL Taxonomy Extension Labels Linkbase Document (1)
101.PRE						Inline XBRL Taxonomy Presentation Linkbase Document (1)
104						Cover Page Interactive Data File (the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)


	SUMMIT HOTEL PROPERTIES, INC. (registrant)

Date: August 5, 2026	By:	/s/ Jonathan P. Stanner
		Jonathan P. Stanner President, Chief Executive Officer and Director (principal executive officer and principal financial officer)