Company Release – 11/07/2012 17:39
11.6 Percent Pro Forma RevPAR Growth; 25.8 Percent Adjusted EBITDA Growth; Increasing Guidance; Strong Dividend
SIOUX FALLS, S.D.–(BUSINESS WIRE)– Summit Hotel Properties, Inc. (NYSE: INN) (the ?Company?) today announced results for the third quarter ended September 30, 2012. The Company?s results include the following:
Third Quarter Highlights
- Pro forma RevPAR: Pro forma RevPAR for the quarter ended September 30, 2012, increased 11.6 percent to $72.24 as a result of a 5.6 percent increase in average daily rate (?ADR?) to $97.72 and a 5.7 percent increase in occupancy to 73.9 percent.
- Pro forma Hotel EBITDA: Pro forma Hotel EBITDA was $17.4 million for the third quarter, an increase of 20.9 percent over third quarter 2011.
- Pro forma Hotel EBITDA Margin: Pro forma Hotel EBITDA Margin for the third quarter was 33.9 percent, an improvement of 261 basis points over the comparable period of 2011. Hotel EBITDA Margin is defined as Hotel EBITDA as a percentage of total revenue.
- Adjusted EBITDA: Adjusted EBITDA was $15.2 million, an increase of 25.8 percent as compared to third quarter 2011.
- Adjusted FFO: Adjusted FFO for the third quarter 2012 was $9.7 million or $0.26 per diluted share/unit. Included in AFFO is $0.3 million of income tax expense. The Company anticipates a tax benefit in the fourth quarter and for the full year. Therefore, after adjusting for the tax expense, the Company views its third quarter AFFO results as $0.27 per diluted share/unit.
- Acquisition: The Company acquired a 96 room Residence Inn by Marriott, located in Dallas (Arlington), TX for a purchase price of $15.5 million on July 2, 2012.
- Dividends: The Company declared third quarter 2012 dividends of $0.1125 per common share on October 31, 2012, representing an annualized yield of approximately 5.4 percent based on the closing price of the Company?s common stock on the NYSE on November 6, 2012, and $0.5781 per share on the Company?s 9.25% Series A Cumulative Redeemable Preferred Stock.
| Third Quarter and Year-to-Date Results | ||||||||||||||||||||
| Third Quarter | Year-to-Date | |||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
| ($ in thousands, except per share/unit data) | ||||||||||||||||||||
| Total revenue | $ | 51,234 | $ | 40,437 | $ | 138,425 | $ | 109,663 | ||||||||||||
| EBITDA (1) | $ | 14,491 | $ | 11,887 | $ | 35,386 | $ | 30,368 | ||||||||||||
| Adjusted EBITDA (1) | $ | 15,246 | $ | 12,120 | $ | 40,691 | $ | 32,125 | ||||||||||||
| FFO (1) | $ | 9,001 | $ | 8,433 | $ | 22,469 | $ | 14,931 | ||||||||||||
| Adjusted FFO (1) | $ | 9,743 | $ | 8,666 | $ | 25,999 | $ | 22,591 | ||||||||||||
| FFO per diluted share/unit (1) | $ | 0.24 | $ | 0.23 | $ | 0.60 | $ | 0.47 | ||||||||||||
| Adjusted FFO per diluted share/unit (1) | $ | 0.26 | $ | 0.23 | $ | 0.70 | $ | 0.49 | ||||||||||||
| Pro Forma (2) | ||||||||||||||||||||
| RevPAR | $ | 72.24 | $ | 64.75 | $ | 68.28 | $ | 62.14 | ||||||||||||
| RevPAR growth | 11.6% | 9.9% | ||||||||||||||||||
| Hotel EBITDA | $ | 17,369 | $ | 14,366 | $ | 47,556 | $ | 40,446 | ||||||||||||
| Hotel EBITDA margin | 33.9% | 31.3% | 32.9% | 31.0% | ||||||||||||||||
| Hotel EBITDA margin growth | 261 bps | 199 bps | ||||||||||||||||||
Source: Summit Hotels