The following is a summary of the Summit Hotel Properties, Inc. (INN) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Summit Hotel Properties reported a third consecutive quarter of adjusted FFO growth despite challenges in industry fundamentals.

• RevPAR for the same-store portfolio slightly increased by 0.2% in Q3, driven by a 1.2% increase in average rate offset by a 1% decline in occupancy.

• Adjusted EBITDA for the quarter was $45.3 million, a slight decrease (2%) compared to the third quarter of 2023.

Business Progress:

• The company sold the Four Points by Sheraton San Francisco Airport Hotel for $17.7 million, adding to 10 hotels sold over the last 18 months with nearly $150 million in gross proceeds.

• Urban and suburban hotels continue to drive growth, with improvements in group and business transient demand. These segments are expected to remain primary demand drivers moving forward.

• Significant investment continues in property renovations to maintain high standards and drive future profitability.

Opportunities:

• The growth outlook for markets that represent approximately 15% of the total guest rooms remains favorable, anticipating continued outsized growth.

• Improved capital markets conditions and adjustments in seller expectations are creating a conducive environment for external growth through transactions.

Risks:

• Disruptions from hurricanes Francine, Helene, and Milton caused an estimated displacement of nearly $400,000 in revenue and a reduction in EBITDA during Q3.

• The hospitality industry continues to face fluctuations in leisure and business travel demand, impacting RevPAR.

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.