Summit Hotel Properties, Inc. (NYSE: INN) reported a net loss of $5.97 million for the fourth quarter of 2025, translating to earnings per diluted share of $‑0.06, a miss against the consensus estimate of $0.18. The company also posted a full‑year net loss of $23.57 million, or $‑0.22 per share, compared with a $25.1 million profit in 2024. Total revenue for the quarter was $174.96 million, a slight decline from the $731.78 million earned in the same period a year earlier, and $729.47 million for the full year, down modestly from $731.78 million in 2024.
The results were offset by a capital‑recycling program that sold the Hilton Garden Inn Longview, Texas, for $12.3 million, netting $2.4 million after debt repayment. The sale eliminated $13 million of near‑term capital expenditures and added liquidity to a balance sheet that carries no debt maturities until 2028.
Management guided for 2026 pro‑forma RevPAR growth of 0%–3%, adjusted EBITDA of $167 million–$181 million, and adjusted FFO of $89 million–$103.5 million, a cautious outlook that signals continued operating pressures. The guidance represents a decline from the full‑year 2025 adjusted EBITDA of $174.85 million and adjusted FFO of $103.6 million, underscoring a contraction in profitability.
CEO Jonathan P. Stanner said, “Demand across our portfolio stabilized in the fourth quarter, with RevPAR growth improving 240 basis points sequentially, despite continued headwinds created by lower international inbound travel and reduced government demand, which was exacerbated in the fourth quarter by the prolonged government shutdown.” He added that the company’s teams “continue to execute effectively in a complex operating environment, highlighted by a ability to drive market share gains and manage expenses to optimize profitability.”
Margin compression is evident: adjusted EBITDA fell 5.9% to $39.66 million from $42.13 million in Q4 2024, and adjusted FFO dropped to $22.33 million from $25.23 million. Full‑year adjusted EBITDA and FFO also declined 9% and 13% respectively, reflecting the impact of lower RevPAR, higher operating costs, and the need to fund capital recycling. Compared with Q4 2024, the company’s net loss widened, and EPS moved from a modest $0.01 to a loss of $0.06, illustrating the cumulative effect of headwinds.
The company declared a quarterly cash dividend of $0.08 per share, a 7.7% yield based on the February 24 closing price, and maintains a strong liquidity position with no debt maturities until 2028. The dividend, combined with the capital recycling proceeds, supports shareholder returns while preserving capital for future portfolio optimization.
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