Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to the Summit Hotel Properties Q4, 2022 and Full-year Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded.

to Wudel, conference Finance, Senior and like speaker to Capital now Treasurer. Adam today, Vice would hand over the your Markets I President of ahead. go Please

Adam Wudel

Hotel I’m Thank Stanner; Jon Vice Trey today you, good CFO, Executive and morning. and Kevin, by Executive and and Summit Conkling. Properties’ President Officer, President Chief joined

described defined to that, Laws. as These Securities many today our risks Please and Federal uncertainties, in our note known are considered are subject filings. by comments of forward-looking and both statements as SEC statements unknown,

Forward-looking we today, them that duty we make statements only today update as February undertake are of later. to and effective XX, XXXX, no

You can www.shpreit.com. financial filings non-GAAP measures earnings find referenced on release, on SEC at and which this contain website to of copies reconciliations call our our

and Hotel Stanner. welcome Jon Properties’ Please President CEO, Summit

Jon Stanner

and earnings conference fourth for today joining Thanks, you call. all XXXX us quarter full-year Adam, for thank and our

year a growth hotels, made fundamentals strategic was we operating Summit for accelerating in our $XXX XXXX of rapidly than acquisition segment. meaningful augmented high dividend the and of more investment our quarterly million the as with Glamping initial growth of reinstated high-quality

year. recent leader and portfolio, activity continue Overall, our exceeded I will our last Summit which our pleased operating from our position we the for in our with a the Trey extremely this lodging and to throughout were how results be outlook to year expectations improving trends Today, year, discuss transaction recovery. for the

by XX% by which year-over-year, levels driven comparable of in rates, XX% with increased of XXXX a XX XX% increase portfolio recaptured average exceeded X%. levels XXXX and EBITDA and data, forma Pro our XX% RevPAR XXXX XXXX led of increase In average RevPAR by XX% in rate. a hotels

XX% the improved the quarter rates in pandemic recapture first fourth of high sequentially in each RevPAR to quarter. a these post quarter XX% from Importantly,

of second and levels since midweek to year post the corporate as urban driven higher in helped than RevPAR XXXX, acceleration rates, demand the XXXX by the Midweek business finished transient Leisure XXXX. most RevPAR for weekend. XX% to improve the The surpassed highest meaningfully demand RevPAR led started. which pandemic the weekend notably and X%, demand nominal average October began of half $XXX, our full-year Labor Day recovery, by drive

resulted While seasonality two-months RevPARs December era lower of nominal natural XX the recapture our comparable of pandemic business hotels another the XX%, for in quarter, last was in high. our RevPAR our post the

Fourth experienced seasonal quarter rates strong average in XX% by pro and demonstrating X% to in form increase XXXX demand softer flat levels, a a power pricing in a in quarter-over-quarter, our decline ability fourth driven increase in the quarter, year-over-year, above normal demand periods. maintain and the Despite increased occupancy RevPAR essentially average XX% X% even rate. were

levels ADR XXXX by at demand XX% as the week remained the sequentially fourth RevPAR finished period recapture quarter, during leisure weekend levels, surpassed XXXX improved While XX%, midweek. XXXX comparable ADR of surpassing fourth throughout an quarter with the to and day year robust the

fourth RevPAR results, market continue quarter and for occupancy finished pricing power by while strong pro our and our revenue the portfolio management to share, the drive throughout portfolio. maintaining asset at capture teams to driven forma as both demonstrating operating Our primarily ability full-year XXX%, impressive further index premiums

add wage the successful and address to services as details shortly, more been on the Trey despite portfolio. we have will margins we pressures, side acceleration back of growing and provide the demand staff, cost critical business our documented cost but across of rapid well amenities

continued first have into XXXX throughout experienced the of year. we trends this quarter operating improving The

fronts in across severe the of Our being first the rainstorms preliminary by approximately the RevPAR January despite flooding in and month. from and XX% negatively affected the half increased prior California year country cold

exceeding results meaningful a weekend year, weekend. respectively last with Day by holiday XXXX and and XX% served acceleration XXXX, as a for to catalyst of Similar for RevPAR Presidents XX% demand the

March up putting quarter with to the and on-track and us RevPAR first pacing growth finish February respectively are XX% month-over-month, XX% year-over-year. XX% and between XX%

to drop key and high with newer our our particularly back favorable for We markets. continue concentration of confident demand portfolio, the growth be in hotels Sunbelt

As I on a consideration for we the through and assets our NewcrestImage another with In extremely of a first transaction the venture mentioned, front. was year various quarter, other million, joint XXXX $XXX of from successful total portfolio GIC. hotels acquired high-quality Summit for XX

per hotels. is of which replacement rates just quality estimated a portfolio represents comparable basis discount and to in Our over cost, compares dollars to recent meaningful key, the favorably hotel $XXX,XXX quite

labor our of ahead clusters performed numerous implemented as sales operations a creating such to optimize and initiatives period has during initial despite hotel transition complexing expectations portfolio intensive revenue. The operational which we multiple

New When portfolio XXXX. transaction, more Canopy our in EBITDA the closing which subsequent the opened just excluding and initial of in was to EBITDA under yield Orleans, ahead the X% of hotel hotel resulted X% underwritten than the a of

needed have the the position these from success those work believe was and much benefits in now just real of future to to that starting for repeatedly efforts. see We hard are completed we emphasized XXXX, assets we

December. example, basis recapture improvement an same recapture XXX in store For portfolio rate increased XXX recapture XX%, approximately in quarter in in the eight point the to basis fourth XXX% quarter our the percentage point to rate with over portfolio. improvement point compares RevPAR fourth culminating The NCI third and in the increase quarter,

Our to portfolio, extremely to and generate in drive RevPAR outlook and compared hotels better growing expect performance for XXXX to our operational store the outsized positive, same EBITDA remains the initiatives and the as portfolio continue it ramp. we newer

constructed hotels these traditional grow midweek of season, to participated a opportunity many ample and XXXX. negotiated have business in recall, will are creating RFP never in newly you As

a AC $XXX,XXX Brickle hotel of interest we our $XX purchase to million neighborhood, the guest XX% Miami’s equity evaluation branded key. closed on or June, option acquire at In dual room in downtown per in XXX element

of last nearly per since the bar, in of average has features which its hotel Sky month generating $XXX,XXX The revenue Rosa success resounding year. opening a on acclaimed Rooftop been March

The opening, market quickly ramped value XXXX and creation underwriting for initial EBITDA long-term a outlook XXXX incredibly December have our lending generating mezzanine positive, higher remains our unique EBITDA in our hotels hotel asset of potential the a X.X% full-year their the basis demonstrates this yield. program. since XX% attractive generating approximately than hotel and The

$XXX, than yield EBIT XX% a generated on and on the announced October, XX% stake our more - RevPAR EBITDA in of our income operations margins approximately in acquisition the of Fredericksburg we Fredericksburg, of hotel Glamping first XX cost net In XX%, a property of ownership operating unit XXXX, full-year distinctive basis. first initial a of margin Texas. High-End In Asset, property’s approximately

partnership announced first development refusal includes a which a XX be of initial their projects, branded the the a both next pipeline separate we of expected Glamping to right transaction, are of announced to which growth with for company. this strategic we projects, the project, Fredericksburg Onera two a our Onera, Onera Yesterday, and site, in expansion loan mezzanine XXXX. our of for a on Alongside open designed funded next newly

acquisition generate yields. initial Fredericksburg $XX million between the to of to our projects, stabilized property, first are unlevered invest expect we in forecasted yield $XX which three mid-teens with Combined these million and

continue our under addition, profiles feature investment In existing industry. to in to projects return rapidly that allow scale have exciting us segment review several projects, our of this to growing we and would other our similar

hotels separate The announced Antonio. parcel of sales a located land through Suburban and San Suburban non-core transactions, we City, in and including released yesterday, pending earnings sale our and of two the in asset the sale vacant four several three hotels Chicago Atlanta sale and also In Minneapolis. of Kansas

overall for contract under net total six portfolio. hotels totalled$XX.X to that million, our combined equates of sale a a were six income The XXXX, $XX margins sale hotels RevPAR which generated Proceeds the to percentage nearly below and XX portfolio, EBITDA in XXXX XX% yield results. from points on X% operating discount a of our

sales Importantly, renovations, due all $XX $XX operating XXXX allow X.X%. capital capital to hotels significant spend, yield million. near-term the between of forego net the expenditures income are equivalent is for of and us foregone would approximately million six the these Including and

the the second the parcel quarter, and two the in sale sale We for expect the to transactions quarter. to hotels in six of fourth the close land close

Our have dollars the Since onset opportunistic in nearly recent quality located totaling hotels ability highlights the and value needs. with minimal transaction we markets, of high of identify assets billion a XX our to growth activity pandemic, acquired high accretive transactions. capital

was upside expectations. after, open of in towards opening, acquisition remain. Again, in the of New our an which Orleans, generating growth third still delayed in stabilization, these and and compared ramping $X finished stages XX.X% to implying of ahead excluding our considerable million of or additional the assets Roughly one XXXX Canopy, early portfolio XXXX underwriting, are EBITDA our

pending collectively and the of of in approximately In to nearly sub $XX deferral our This dispositions, gross XXXX total, yield sale proceeds a net full-year X% XXXX compares favorably the net more Francisco, operating our capital yield million Hilton nearly acquisition X%. estimated to recent income $XXX expenditures. generated portfolio income near-term of million including or totaled of Garden San X% than the which net of of of a equating operating XXXX

the call I our to CFO, that, Conkling. over With will turn Trey

Trey Conkling

morning, significant Thanks, and location XXXX, good Jon, everyone. demonstrated improvement Throughout across all portfolio types. our

first in XXXX, the in relative RevPAR year recapture quarter these QX the in the increased XX% from of in to quarter to demonstrated recovery lagged XX% second beginning hotels rates urban hotels While as QX. strong

respectively sporting the was portfolio business power acceleration in demand to professional driven travel, college group markets our urban in rates quarter of events, Boston, and pricing year. as Dallas, third citywide recovery and such of XXXX The of robust XXX% leisure and by Chicago. in recapture the in and of Nashville, versus due fourth in ADR first XXXX resulted This rate quarters the XX% Miami, the recapture and and XXX% the

our was levels. $XXX nominal month forma a urban a and X% generated produces to the pro highlighted by a RevPAR XX% as typically XXXX recovery the to premium portfolio’s fourth quarter which highest portfolio, representing hotels October, RevPAR The

these Dallas, market, a quarter XX% rate hotels was in Nominal XXX%. hotels posted a $XX fourth rate. quarter comparable or our comparison by last increase evident Strength the recapture for where XX% year, fourth particularly in driven of RevPAR in our average to grew in largest

in non-urban $XXX representing to portfolio XX% quarter, fourth of This our increase strength XXXX. the an RevPAR properties, for XXX% resort generated in compared to of driven fourth XXXX RevPAR a rate rate was the XX% quarter and continued recapture to of recapture a was XXXX. by which $XXX

any XX% of increased the RevPAR portfolio rate. location growth increase compared by a year-over-year type, the occupancy and Additionally, experienced in quarter driven increase in XX% suburban fourth to X% as XXXX, average largest a

segmentation. portfolio to Shifting

segments demand for While from in night all to quarter, room seasonality rate average translates quarter in exceeded apart the the fourth slowing levels XXXX fourth segment. negotiated the

ahead X% basis increased rate weekend by increased average the basis, group $X period relative as points which the and X.X%, finished $XX on rates, saw a or driven by XX mix XXXX, to or Notably, of by improvement occupancy full week primarily comparable XXXX. in segment

asset year. and necessary that wage These occupied over team despite to results a management adding in appear a base. strong continues be market increases increased by staff, labor as despite cost the growth amenities in the and third services only past deliver material costs Our resulted the X.X% back quarter dynamic has to room per from that fourth quarter occupied moderating, operating evidenced lower room challenges

gross approximately profit fourth result, natural forma XX% X.X% pro the despite quarter, a seasonality. third quarter the the prior respectively, a to XX% due As for portfolio and margin were absolute in and of margin decline operating RevPAR in-line were with which from hotel quarter EBITDA

to basis favorable pro attributable hotel quarter levels, margin property EBITDA XXX XXXX portfolio forma was in points Fourth returns. largely our tax above

grow to ability an with RevPARs, to strong nominal in higher rate demonstrated growth. have by relative months margins driven XXXX, We

year, portfolio in margins three October, levels of and XXX the our margins exceeded XXXX nearly months exceeded basis final GOP the points. XXXX by September in of four in EBITDA levels comparable hotel and

was our contract We industry the productive to the margin to hourly experienced and on expansion well expensive labor where documented in despite significant periods of particularly outsized expense experienced were throughout Expense the encouraged growth XXXX. wages in less and on industry see XXXX, labor. side, reliance growth increases in portfolio acute relative the more

wage to growth XXXX. in we ahead, expect moderate Looking

of XXX% $XXX.X million Pro was the and XXXX forma million and full-year representing full-year increases $XX.X EBITDA respectively, reflects XX% which quarter and adjusted quarter $XXX.X XXXX. Fourth respectively, XX% and for and was million XX% year-over-year. and hotel from fourth $XX.X increases million EBITDA of

from $XX.X increase Adjusted FFO full-year million dollars XXXX. or the an FFO adjusted a $XXX fourth was an from million $X.XX was and the $XX.X $XX.X share, fourth of quarter quarter million of or share, increase $X.XX XXXX a of in million

million and fourth From respectively and capital on quarter $XX.X approximately a on the XXXX, in approximately $XX.X million basis. $XX.X respectively $XX.X expenditure in consolidated rata we basis, and the for standpoint, a million invested a our full-year portfolio million and pro

Place, Hilton the Corridor, San significant in as renovations Studios, and our Inn, and driven the Garden Garden our Houston CapEx residents ongoing spend of and at Universal Portland full-year completion the at for Hya renovations transformative quarter was Inn, fourth our well Jose Energy Milpitas. by as Hilton Orlando downtown

the We share. ensure quality and continue positions relative drive company the market portfolio to to of profitability our and age

to current earlier. to asset for liquidity than the Turning two balance robust overall million is sales balance the that sheet. $XX The pro sheet, more John and $XXX forma sales gross from proceeds million pack remains position asset Summit our discussed four pack of continues those further deleverage at

of the loan this the fourth options. during only our addition, year, million fourth quarter, maturity, XXXX extension in eliminated after remaining $XX defies quarter consideration to August remaining which all In debt until a debt of CMBS we XXXX of maturities set mature

and The over six-months. our defeasance the cash transactions times of approximately given X.X EBITDA. AFFO progress accretive these net of of is cash In unlock target leverage next demonstrated towards times debt to to long-term restricted $XXX,XXX stated $X X.X net savings to strong combination, million

Finally, options maturity March revolving extension more the extended term million facility. September under six-month maturity quarter, options, available $XXX will the credit and XXXX, we than first of Summit considering be notice two-years The date when fourth in XX, remaining available final to XXXX. of has four facility the all with a extension exercise senior our

of swaps rata our an an rate share and sheet end management of consideration rate X.X% balance interest XX% after rate year of perspective, XXXX. average risk rata our approximately at From pro fixed well pro is positioned, of interest debt including interest

the to $XXX recent carry address of that rates in two addition respectively. $XXX and have X.X% swaps, million rate swap In maturity one-month million into we SFR of agreements X.XX% recently notional interest fixed fixed entered and

years. of January swap XXXX our in swaps of for approximately in extends from mature F, we the Z and portfolio accounting when E, will our than structure, within preferred to four fixed. equity swaps The XXXX. new duration two became January years effective the less This These XX% XXXX are average over Series company January and capital

Directors $X.XX our represents per leaving annualized per meaningful room of dividend prudent for increases XXth, January share Board AFFO The dividend or payout a time. common declared $X.XX ample a On of share. ratio an quarterly current over

view full-year XXXX in outlook to guidance evening, last certain operational will on note Included current non-operational for in any changes to operating based and our you account we press release This reinstated is does metrics for addition environment. unexpected not items. management’s the current

XX%. range full-year, of we demand to the of growth strengthen continued group high-end For anticipate accelerating and growth business transient the demand. assumes X% in RevPAR leisure The and

result hotel of growth in our range of growth $X.XX to margins The the implies EBITDA million EBITDA the the midpoint to year-over-year. guidance low FFO half range $X.XX The be slowdown range that essentially share. back flat per XX% adjusted of single in to XXX.X and an of to XXX.X RevPAR X% million, low reflects an a RevPAR would year. economic digit RevPAR of range adjusted of end an translates to

We of to from to preferred to million be expect amortization approximately million. deferred be million distributions be range Z preferred pro-rata interest million, Series Series $XX expenditures Series excluding E the financing costs to F $XX.X and $XX $X.X million $XX dividends and capital to expense

the GIC fee cash increased income promote annual now any is expense, the the nearly worth G&A It Summit XX% of covers noting during distributions year. earn also to venture, of Summit the size excluding joint given may that payable corporate

our portfolio new financial We relative of clearly earnings. will this part have various also contribution structures. fourth our to of that the more want we out supplement supplement ownership performance believe furnished and outline I point a as quarter

outlined has our acquisitions a XXXX. strength nearly have sheet, in on for detail a the acquire be to to balance additional We also and continued us since which company allowed July, dollars billion

And with call your open to questions. the that, we will

Operator

[Operator Instructions] with Wurschmidt Our KeyBank comes first question Market. from Capital Austin

Your open. line is

Austin Wurschmidt

just assets curious of how proceeds amount you speak Trey, or can and of at guess I to presumably, marketed to for selectively the guys. that arrived hotel morning you the you solve just guys were six-pack the you Jon for? good I’m Hey sale, on looking number

Jon Stanner

Sure. morning, Yes. Austin. Good

all, sale the point too separate Chicago There two sale a City. and suburban is first is thing assets the and out there asset of of in a two I for First the here. four the is Minneapolis separate involves pack, Atlanta Kansas and transaction

Look, I Minneapolis, to been in margins assets. and think, now while assets felt prudent of we lower hotels, time that exit has RevPAR has that which these like and we market a have a to exiting talked it are opportunistic lower for about recover, much just some was slower particularly those a been suburban

think, I over across XX-months. capital to the for spent the across near-term, common need XX-months six over next theme for - probably you will the see assets to just next the is the that one the be significant those

And think between $XX over period. that $XX somewhere spending so time between we the we million six assets, million and will avoid

local CMBS a the and thing more other through center of owner, not on just where that owner isn’t today operator liquid it market we market is of has most big finance transaction the it reliant a a locations, that seen, for local out to of where appeals we can the well, where that banks I these and a it hotels is lender to secondary The easiest smaller seen transaction get think for some the have financing tertiary been money I smaller point would part done. mark some have

one. did these with under in not like release that, here closed have press we feel the are yet, this execution is the by they our contract. so, deals saying I And appropriate as we will caveat

the with close. happy when are execution we And close. will they that if optimistic they are and We

Austin Wurschmidt

the And know some joint of deployment to year. the coin you pricing venture your of opening returns maybe do than so remarks, wholly-owned then I GIC? focused do on, specific benefits very there. the vehicle markets, side other putting your on assets about about there versus Thanks markets we sense. in how currently guess detail eye given joint use guys this of purchases for we any makes I are you sort the how venture. the assets if are into road that continuing the highlighted with in you or think but about think And have more down capital

Jon Stanner

We venture. really joint still Yes. the like

is of getting fact allow have become particularly be meaningful think partners transactions to it They to execute income for us. income I we able Trey source been where size wonderful wouldn’t the highlighted to otherwise a the a has on that, execute us fee that on. that

So we vehicle. the still don’t We like put as that to into have vehicle. everything a

I case-by-case be it basis. think will a

said, As to a dots we in that bunch necessarily have says it a with be map a historically, I lot on think we have we that, certain don’t need markets. of

can see post pandemic. You our transaction through activity

markets have that bias We towards like. had we some in a investing

where some the Sunbelt, since demographic us migration put the The towns relocation, performed changes, well pandemic. onset these of places like is really in corporate of more we people, mountain that see put that is really, that in quite us of more have the

a we through be But of opportunistic capacities on continue see just risk are we certainly some adjusted opportunistic. we returns And to relative dispositions, basis. again, better create these some where will

Austin Wurschmidt

Trey. last one And me, then maybe the just for for

end? the midpoint You flat range margin. high mentioned Can that assumes you EBITDA share roughly of the low is what at that end, hotel guidance

Trey Conkling

Yes.

that and kind look is basis of minus you I from points of was at end to low midpoint. of X% flat the think basis we XX% the kind XX plus would high XX if range, the points at to say, the

Austin Wurschmidt

guys. Perfect. Thanks,

Operator

next our for question. moment One

with next Bill James. comes Crow Our Raymond question from

open. is line Your

William Crow

Thanks. Good morning, guys.

little for detail a expectations expense more the this for year. looking Just bit on

be at but FTEs, mentioned growing that think also a year. higher added wage to at have I were that, pace, you assume, least last slower those I would anniversarying you rates

are how et with you but overall you to insurance, going taxes, So What actually do property expect cetera? is able about were what thinking what property expense growth? on there, you appeal,

Jon Stanner

good Sure, morning. Thanks. Bill. And Yes.

of prepared some in As moderating the to growth. expense expect said we we remarks, do see

we pressure think have first as side of that last year particularly later of and a into on of amount seen I this some have the of fair moderating. wage year, gotten part we the

on fourth quarter, basis in are Tray quarter. at less a articulated actually bit than expenses where fourth was operating occupied little the a up it the declined actually room quarter in on the X% third of was spent per from aggregate level dollars in the

have some So see started we there. moderating to

by can into level is persisting mentioned, just which think as margin expense X.X% year. our tell I Trey of some midpoint pressure flat of implied still growth guidance, at RevPAR contemplate next you a does of

And you GOP margins. little our this will what is think our from EBITDA results expanded than in we XXXX, more look is at unique year see I if our a that margins

flip Our expectation is expenses moderate. will into XXXX that operating as that

as we did, our But in some some GOP EBITDA is our we in on had we lower was margins pressure property you helped alluded expansion the EBITDA we line successful make the than year. will on to, in or appeals, nice our XXXX. expenses feel expansion will XXXX tax which insurance that And margin

William Crow

swaps on And question what the cost Trey, then, the for $XXX debt million pieces? two a follow-up the of was

Trey Conkling

were and - The rates X.X X.X% -. there X.X%

William Crow

was Yes. of that done? actual But the what getting transaction cost

Adam Wudel

this Those out-of-pocket. are initial on basis going Bill, forward. Adam. is a no There monthly settled is

William Crow

very I Alright, me. it Thanks, is that appreciate for good. it.

Operator

with comes Michael Instructions] question from [Operator Our Bellisario Baird. next

open. is line Your

Michael Bellisario

Thanks, good guys. morning

if I the on the back timeline, be do your to much go want year? six in XXXX EBITDA to asset might of guess remainder for sales the close expected how dispositions. and sold the Just hotels

Jon Stanner

Mike, some outlined the we sale. kind expect the have of close to on them of in well Yeah, timing that the we is to quarter. going that depend of second

guidance time our that they close. at the update will We

$X is where in between the million probably somewhere reduction Our in year and million $X expectation on we of EBITDA. sit

Michael Bellisario

not margins, on margin. or this just the And but then maybe on served is the margin

asset the is growth and that remaining be from are XXXX margins in of Just sales? RevPAR kind as six will benefited, the portfolio the impact pro forma be these what to will is completed, growth sales asset these diluted

Jon Stanner

guidance enough change XXXX, to our as that expect Mike. us margin a marginal, It Yes, accretive it both for slightly growth range I of not our these. is materially RevPAR expectations and relatively result to would is

this we on XX% our be relatively RevPAR we smaller, are prepared perspective. a expect about remarks, the these to nominal they RevPAR Again, as growth to from again, And mentioned, discounts average accretive run levels.

The is again, aren’t for while -- of kind expect of point that I these rates the the is per one are that the high quite thing reemphasize prices will as as maybe out are key rationale here you part just low. sales and we would cap

Combined asset cap, we in it at of last selling and a $XXX for San with X%. the sale year, Francisco you are adjust assets if three is needs, million sub the deferred capital

And to so the is of to us we one giving it that like things of to is place earnings. going balance the ton bolster without continue up allow in sheet a

Michael Bellisario

the And then about just key it portfolio. do left or is I $XX,XXX portfolio? key, how maybe guess a bottom of Yes. thinking many you per more, the more one the $XXX,XXX or type portion maybe of Understood. assets XX,XXX just have guys in

Jon Stanner

portfolio. of a assets. your is always what kind look Yes. is a assets. think, mean, XX% I as think, I of we to sell to don’t bottom I describe of do opportunistically I we non-core there there Look try to will Like ton continue would real some, have

I we those really, really compelling think again year these plus represent sale and we the six FFO and redeploy last can particularly execution on think, how we the with a proceeds. where where -- execution, on

on yields And have acquired. a between delta have the versus we again, the what think, we yields I we really on have nice sold what shown,

look go sales I continue through expect we for And us think, as to XXXX. to asset so, opportunistically can you

Michael Bellisario

at would Got land probably if basis those it. where one And plus just me leverage, on sales have completed did a what six it sale Trey, year-end net then that then last stand, and asset forma pro the from for were XX.XX? been

Trey Conkling

Yes.

our look $XX from I and around for what what that standpoint we asset say guidance five forma we probably the bringing are the leverage, the right is is times. of would midpoint I you in think, our kind kind range pro if million that that anticipate of at and sales of

the our the some -- as out higher is as about have well recycled non-core than made turn half of a have these it as obviously growth kind we progress we is what I we that a year target we that of of over where EBITDA But is. That good have seen. assets think last

Michael Bellisario

Thanks it. Got everyone.

Operator

further back the this showing I’m closing to like for time. Stanner, over any And would not and call CEO I President any questions turn Jon remarks.

Jon Stanner

you all for thank today. Well us joining Yes.

operating results for obviously XXXX. We are our by very encouraged

activity are a through good about are and the to for you prospects completed acquisition We many the we optimistic the year. all we the of in you We Have of again seeing that joining. for progress excited look we Thank about future the year forward as Summit. day.

Operator

concludes is that gentlemen, presentation. and Ladies today’s

now a may You disconnect have and wonderful day.

Summit Hotel Properties (INN) 28 Feb 232022 Q4 Earnings call transcript