Austin, Texas, August 5, 2020 - - - Summit Hotel Properties, Inc. (NYSE: INN) (the “Company”), today announced results for the second quarter ended June 30, 2020.

“The lodging industry experienced an unprecedented decline in demand during the second quarter as the spread of COVID-19 forced widespread shutdowns and eliminated the majority of non-essential travel. We were pleased with our ability to quickly adapt and navigate through this very challenging operating environment, allowing us to keep nearly all of our hotels open and gain considerable market share during the quarter. Occupancy and RevPAR levels improved sequentially throughout the quarter driven predominately by weekend leisure demand, particularly outside of core urban markets,” said Dan Hansen, the Company’s Chairman, President and Chief Executive Officer. “As RevPAR trends have improved from trough levels in April, our monthly cash burn rate has been reduced by nearly 40%, and with approximately $270 million of liquidity, we have 38 months of runway at current RevPAR levels. Despite the effects of the current pandemic, we remain bullish on the prospects of our business and believe our actions in response to the crisis position us well to take advantage of opportunities as we enter the recovery,” commented Mr. Hansen.

The Company’s results for the three and six months ended June 30, 2020 and 2019 are as follows (in thousands, except per share amounts):

The Company invested $4.8 million and $15.9 million in capital improvements during the three and six months ended June 30, 2020 and anticipates investing a total of approximately $25.0 million in capital improvements on a consolidated basis across its portfolio during 2020.

At June 30, 2020, inclusive of its pro rata share of the Joint Venture credit facility, the Company had the following:

At July 31, 2020, inclusive of its pro rata share of the Joint Venture credit facility, the Company had the following:

The Company’s balance sheet continues to be well-positioned with no debt maturities until November 2022 and an average length to maturity of approximately 3.5 years.

On June 18, 2020, the joint venture, in which the Company is a 51 percent owner and general partner, completed an amendment of its existing $200 million credit facility that provides for a temporary waiver of financial covenants through the first quarter 2021, and modifies certain financial covenant measures through the second quarter 2022. The amendment also provides for additional credit availability for capital expenditures and other general joint venture purposes and has certain restrictions and limitations related to distributions, investments, and dispositions.

On July 29, 2020, the Company declared a quarterly cash preferred dividend of $0.403125 per share on its 6.45% Series D Cumulative Redeemable Preferred Stock and $0.390625 per share on its 6.25% Series E Cumulative Redeemable Preferred Stock. The preferred dividends are payable on August 31, 2020, to holders of record as of August 17, 2020.

The Company will conduct its quarterly conference call on Thursday, August 6, 2020, at 10:00 AM ET. To participate in the conference call dial 877-930-8101 approximately ten minutes before the call begins (9:50 AM ET). The conference identification code for the call is 3577425. Additionally, a live webcast of the quarterly conference call will be available through the Company’s website, www.shpreit.com. A replay of the quarterly conference call webcast will be available until 12:00 PM ET Thursday, August 13, 2020, by dialing 855-859-2056, conference identification code 3577425. A replay will also be available in the Investor Relations section of the Company’s website until October 31, 2020.

Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded hotels with efficient operating models primarily in the Upscale segment of the lodging industry. As of August 5, 2020, the Company’s portfolio consisted of 72 hotels, 67 of which are wholly owned, with a total of 11,288 guestrooms located in 23 states.

For additional information, please visit the Company’s website, www.shpreit.com, and follow on Twitter at @SummitHotel_INN.

⁽¹⁾ Includes all acquisitions and dispositions completed as of August 5, 2020.

This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “seek,” “anticipate,” “estimate,” “approximately,” “believe,” “could,” “project,” “predict,” “forecast,” “continue,” “plan,” “likely,” “would” or other similar words or expressions. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections or other forward-looking information. Examples of forward-looking statements include the following: the Company’s ability to realize growth from the deployment of renovation capital; projections of the Company’s revenues and expenses, capital expenditures or other financial items; descriptions of the Company’s plans or objectives for future operations, acquisitions, dispositions, financings, redemptions or services; forecasts of the Company’s future financial performance and potential increases in average daily rate, occupancy, RevPAR, room supply and demand, EBITDAre, Adjusted EBITDAre, FFO and AFFO; the Company’s outlook with respect to pro forma RevPAR, pro forma RevPAR growth, RevPAR, RevPAR growth, AFFO, AFFO per diluted share and unit and renovation capital deployed; and descriptions of assumptions underlying or relating to any of the foregoing expectations regarding the timing of their occurrence. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company’s control, which could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the state of the U.S. economy, supply and demand in the hotel industry, and other factors as are described in greater detail in the Company’s filings with the Securities and Exchange Commission (“SEC”). Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

For information about the Company’s business and financial results, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC, and its quarterly and other periodic filings with the SEC. The Company undertakes no duty to update the statements in this release to conform the statements to actual results or changes in the Company’s expectations.

Summit Hotel Properties, Inc.
Reconciliation of Net Income to Non-GAAP Measures – Funds From Operations

Reconciliations of Non-GAAP financial measures to comparable GAAP financial measures

We disclose certain “non-GAAP financial measures,” which are measures of our historical financial performance. Non-GAAP financial measures are financial measures not prescribed by Generally Accepted Accounting Principles ("GAAP"). These measures are as follows: (i) Funds From Operations (“FFO”) and Adjusted Funds from Operations ("AFFO"), (ii) Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA"), Earnings before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre"), Adjusted EBITDAre, and hotel EBITDA (as described below). We caution investors that amounts presented in accordance with our definitions of non-GAAP financial measures may not be comparable to similar measures disclosed by other companies, since not all companies calculate these non-GAAP financial measures in the same manner. Our non-GAAP financial measures should be considered along with, but not as alternatives to, net income (loss) as a measure of our operating performance. Our non-GAAP financial measures may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures, property acquisitions, debt service obligations and other commitments and uncertainties. Although we believe that our non-GAAP financial measures can enhance the understanding of our financial condition and results of operations, these non-GAAP financial measures are not necessarily better indicators of any trend as compared to a comparable measure prescribed by GAAP such as net income (loss).

As defined by Nareit, FFO represents net income or loss (computed in accordance with GAAP), excluding preferred dividends, gains (or losses) from sales of real property, impairment losses on real estate assets, items classified by GAAP as extraordinary, the cumulative effect of changes in accounting principles, plus depreciation and amortization related to real estate assets, and adjustments for unconsolidated partnerships, and joint ventures. AFFO represents FFO excluding amortization of deferred financing costs, franchise fees, equity-based compensation expense, debt transaction costs, premiums on redemption of preferred shares, losses from net casualties, non-cash lease expense, non-cash interest income and non-cash income tax related adjustments to our deferred tax assets. Unless otherwise indicated, we present FFO and AFFO applicable to our common shares and common units. We present FFO and AFFO because we consider FFO and AFFO an important supplemental measure of our operational performance and believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO and AFFO when reporting their results. FFO and AFFO are intended to exclude GAAP historical cost depreciation and amortization, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO and AFFO exclude depreciation and amortization related to real estate assets, gains and losses from real property dispositions and impairment losses on real estate assets, FFO and AFFO provide performance measures that, when compared year over year, reflect the effect to operations from trends in occupancy, guestroom rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from net income. Our computation of FFO differs slightly from the computation of Nareit-defined FFO related to the reporting of corporate depreciation and amortization expense. Our computation of FFO may also differ from the methodology for calculating FFO used by other equity REITs and, accordingly, may not be comparable to such other REITs. FFO and AFFO should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. Where indicated in this release, FFO is based on our computation of FFO and not the computation of Nareit-defined FFO unless otherwise noted.

EBITDA represents net income or loss, excluding: (i) interest, (ii) income tax expense and (iii) depreciation and amortization. We believe EBITDA is useful to an investor in evaluating our operating performance because it provides investors with an indication of our ability to incur and service debt, to satisfy general operating expenses, to make capital expenditures and to fund other cash needs or reinvest cash into our business. We also believe it helps investors meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our asset base (primarily depreciation and amortization) from our operating results. Our management team also uses EBITDA as one measure in determining the value of acquisitions and dispositions.

EBITDAre is based on EBITDA and is expected to provide additional relevant information about REITs as real estate companies in support of growing interest among generalist investors. EBITDAre is intended to be a supplemental non-GAAP performance measure that is independent of a company’s capital structure and will provide a uniform basis to measure the enterprise value of a company compared to other REITs.

EBITDAre, as defined by Nareit, is calculated as EBITDA, excluding: (i) loss and gains on disposition of property and (ii) asset impairments, if any. We believe EBITDAre is useful to an investor in evaluating our operating performance because it provides investors with an indication of our ability to incur and service debt, to satisfy general operating expenses, to make capital expenditures and to fund other cash needs or reinvest cash into our business. We also believe it helps investors meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our asset base (primarily depreciation and amortization) from our operating results.

We make additional adjustments to EBITDAre when evaluating our performance because we believe that the exclusion of certain additional non-recurring or certain non-cash items described below provides useful supplemental information to investors regarding our ongoing operating performance. We believe that the presentation of Adjusted EBITDAre, when combined with the primary GAAP presentation of net income, is useful to an investor in evaluating our operating performance because it provides investors with an indication of our ability to incur and service debt, to satisfy general operating expenses, to make capital expenditures and to fund other cash needs or reinvest cash into our business. We also believe it helps investors meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our asset base (primarily depreciation and amortization) from our operating results.

With respect to hotel EBITDA, we believe that excluding the effect of corporate-level expenses and non-cash items provides a more complete understanding of the operating results over which individual hotels and operators have direct control. We believe the property-level results provide investors with supplemental information on the ongoing operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis.

We caution investors that amounts presented in accordance with our definitions of EBITDA, EBITDAre, adjusted EBITDAre, and hotel EBITDA may not be comparable to similar measures disclosed by other companies, since not all companies calculate these non-GAAP measures in the same manner. EBITDA, EBITDAre, adjusted EBITDAre, and hotel EBITDA should not be considered as an alternative measure of our net income (loss) or operating performance. EBITDA, EBITDAre adjusted EBITDAre, and hotel EBITDA may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures and property acquisitions and other commitments and uncertainties. Although we believe that EBITDA, EBITDAre, adjusted EBITDAre, and hotel EBITDA can enhance your understanding of our financial condition and results of operations, these non-GAAP financial measures are not necessarily a better indicator of any trend as compared to a comparable GAAP measure such as net income (loss). Above, we include a quantitative reconciliation of EBITDA, EBITDAre, adjusted EBITDAre and hotel EBITDA to the most directly comparable GAAP financial performance measure, which is net income (loss) and operating income (loss).

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	INN	New York Stock Exchange
Series D Cumulative Redeemable Preferred Stock, $0.01 par value	INN-PD	New York Stock Exchange
Series E Cumulative Redeemable Preferred Stock, $0.01 par value	INN-PE	New York Stock Exchange

	99.1	Press release issued on August 5, 2020.

	104	Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document (contained in Exhibit 101)

	SUMMIT HOTEL PROPERTIES, INC.


	By:	/s/ Christopher R. Eng
		Christopher R. Eng
		Executive Vice President, General Counsel,
Dated: August 5, 2020		Chief Risk Officer and Secretary

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2020			2019			2020			2019
	(unaudited)
Net (loss) income attributable to common stockholders	$	(54,126	)	$	45,248		$	(73,157	)	$	54,416
Net (loss) income per diluted share	$	(0.52	)	$	0.43		$	(0.70	)	$	0.52
Total revenues	$	25,436		$	142,930		$	133,821		$	281,882
EBITDAre ⁽¹⁾	$	(14,503	)	$	49,409		$	12,601		$	94,812
Adjusted EBITDAre ⁽¹⁾	$	(12,791	)	$	52,420		$	13,959		$	99,145
FFO ⁽¹⁾	$	(28,273	)	$	35,202		$	(18,475	)	$	65,652
Adjusted FFO ⁽¹⁾	$	(25,922	)	$	38,648		$	(12,653	)	$	70,912
FFO per diluted share and unit ^(1,2)	$	(0.27	)	$	0.34		$	(0.18	)	$	0.63
Adjusted FFO per diluted share and unit ^(1,2)	$	(0.25	)	$	0.37		$	(0.12	)	$	0.68

Pro Forma ⁽³⁾
RevPAR	$	23.20		$	136.65		$	59.59		$	132.59
RevPAR change		-83.0	%					-55.1	%
Hotel EBITDA	$	(10,009	)	$	60,905		$	19,716		$	114,713
Hotel EBITDA margin		N/A			40.0	%		14.7	%		39.0	%

	June 30,2020		December 31, 2019
	(unaudited)
ASSETS
Investment in hotel properties, net	$	2,145,912	$	2,184,232
Undeveloped land		1,500		1,500
Assets held for sale, net		425		425
Cash and cash equivalents		124,554		42,238
Restricted cash		18,658		27,595
Investment in real estate loans, net		29,173		30,936
Right-of-use assets, net		29,181		29,884
Trade receivables, net		10,507		13,281
Prepaid expenses and other		7,249		8,844
Deferred charges, net		4,479		4,709
Other assets		9,237		12,039
Total assets	$	2,380,875	$	2,355,683
LIABILITIES AND EQUITY
Liabilities:
Debt, net of debt issuance costs	$	1,159,399	$	1,016,163
Lease liabilities		19,069		19,604
Accounts payable		2,672		4,767
Accrued expenses and other		68,199		71,759
Total liabilities		1,249,339		1,112,293

Total stockholders' equity		1,065,249		1,173,778
Non-controlling interests in operating partnership		1,332		1,809
Non-controlling interests in joint venture		64,955		67,803
Total equity		1,131,536		1,243,390
Total liabilities and equity	$	2,380,875	$	2,355,683

	13215 Bee Cave Pkwy, Suite B-300, Austin, TX 78738 Telephone: 512-538-2300 Fax: 512-538-2333 www.shpreit.com

Revenue:
Total revenues	$	25,436		$	142,930		$	133,821		$	281,882
Total revenues - acquisitions ⁽¹⁾		-			12,899			-			25,242
Total revenues - dispositions ⁽²⁾		(1	)		(3,589	)		(1	)		(13,128	)
Pro forma total revenues		25,435			152,240			133,820			293,996

Hotel Operating Expenses:
Total hotel operating expenses		35,446			87,676			114,109			176,467
Hotel operating expenses - acquisitions ⁽¹⁾		-			6,570			-			12,809
Hotel operating expenses - dispositions ⁽²⁾		(2	)		(2,911	)		(5	)		(9,993	)
Pro forma hotel operating expenses		35,444			91,335			114,104			179,283

Hotel EBITDA:
Operating (loss) income		(42,922	)		59,390			(48,262	)		82,191
Loss (gain) on disposal of assets, net		32			(35,520	)		35			(39,686	)
Loss on impairment of assets		-			1,685			782			1,685
Provision for credit losses		-			-			2,530			-
Corporate general and administrative		5,315			5,920			9,983			11,910
Depreciation and amortization		27,565			23,779			54,644			49,315
Hotel EBITDA		(10,010	)		55,254			19,712			105,415
Hotel EBITDA - acquisitions ⁽¹⁾		-			6,329			-			12,433
Hotel EBITDA - dispositions ⁽²⁾		1			(678	)		4			(3,135	)
Pro forma hotel EBITDA	$	(10,009	)	$	60,905		$	19,716		$	114,713

	2019						2020						Trailing Twelve Months Ended
	Q3			Q4			Q1			Q2			June 30, 2020
Pro Forma Operating Data ^(1) (2)
Pro forma room revenue	$	133,358		$	122,384		$	98,603		$	23,828		$	378,173
Pro forma other hotel operations revenue		11,207			11,318			9,782			1,607			33,914
Pro forma total revenues		144,565			133,702			108,385			25,435			412,087
Pro forma total hotel operating expenses		90,275			87,333			78,660			35,444			291,712
Pro forma hotel EBITDA	$	54,290		$	46,369		$	29,725		$	(10,009	)	$	120,375
Pro forma hotel EBITDA Margin		37.6	%		34.7	%		27.4	%		N/A			29.2	%

Pro Forma Statistics ^(1) (2)
Rooms sold		838,378			788,040			630,278			249,310			2,506,006
Rooms available		1,038,496			1,038,496			1,027,208			1,027,208			4,131,408
Occupancy		80.7	%		75.9	%		61.4	%		24.3	%		60.7	%
ADR	$	159.07		$	155.30		$	156.44		$	95.57		$	150.91
RevPAR	$	128.41		$	117.85		$	95.99		$	23.20		$	91.54

Actual Statistics
Rooms sold		793,599			790,751			630,278			249,310			2,463,938
Rooms available		990,708			1,042,076			1,027,208			1,027,208			4,087,200
Occupancy		80.1	%		75.9	%		61.4	%		24.3	%		60.3	%
ADR	$	155.13		$	154.88		$	156.44		$	95.57		$	149.36
RevPAR	$	124.27		$	117.53		$	95.99		$	23.20		$	90.04

Revenue:
Total revenues		133,685			133,781			108,385			25,436		$	401,287
Total revenues from acquisitions ⁽¹⁾		12,761			775			-			-			13,536
Total revenues from dispositions ⁽²⁾		(1,881	)		(854	)		-			(1	)		(2,736	)
Pro forma total revenues		144,565			133,702			108,385			25,435			412,087

Hotel Operating Expenses:
Total hotel operating expenses		85,676			87,629			78,663			35,446			287,414
Total hotel operating expenses from acquisitions ⁽¹⁾		6,145			520			-			-			6,665
Total hotel operating expenses from dispositions ⁽²⁾		(1,546	)		(816	)		(3	)		(2	)		(2,367	)
Pro forma total hotel operating expenses		90,275			87,333			78,660			35,444			291,712

Hotel EBITDA:
Operating income (loss)		19,244			17,971			(5,340	)		(42,922	)		(11,047	)
Loss (gain) on disposal of assets, net		31			(5,763	)		3			32			(5,697	)
Loss on impairment of assets		-			836			782			-			1,618
Provision for credit losses		-			-			2,530			-			2,530
Corporate general and administrative		5,532			6,180			4,668			5,315			21,695
Depreciation and amortization		23,202			26,928			27,079			27,565			104,774
Hotel EBITDA		48,009			46,152			29,722			(10,010	)		113,873
Hotel EBITDA from acquisitions ⁽¹⁾		6,616			255			-			-			6,871
Hotel EBITDA from dispositions ⁽²⁾		(335	)		(38	)		3			1			(369	)
Pro forma hotel EBITDA	$	54,290		$	46,369		$	29,725		$	(10,009	)	$	120,375

Cover	Aug. 05, 2020
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 05, 2020
Entity File Number	001-35074
Entity Registrant Name	SUMMIT HOTEL PROPERTIES, INC.
Entity Central Index Key	0001497645
Entity Tax Identification Number	27-2962512
Entity Incorporation, State or Country Code	MD
Entity Address, Address Line One	13215 Bee Cave Parkway, Suite B-300
Entity Address, City or Town	Austin
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78738
City Area Code	512
Local Phone Number	538-2300
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	INN
Security Exchange Name	NYSE
Series D Cumulative Redeemable Preferred Stock 0. 01 Par Value [Member]
Document Information [Line Items]
Title of 12(b) Security	Series D Cumulative Redeemable Preferred Stock, $0.01 par value
Trading Symbol	INN-PD
Security Exchange Name	NYSE
Series E Cumulative Redeemable Preferred Stock 0. 01 Par Value [Member]
Document Information [Line Items]
Title of 12(b) Security	Series E Cumulative Redeemable Preferred Stock, $0.01 par value
Trading Symbol	INN-PE
Security Exchange Name	NYSE

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