INN - Earnings call transcript Q4 2024 | Summit Hotel Properties, Inc.

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

Operator

Welcome to the Summit Hotel Properties 2024 Fourth Quarter and Full Year Earnings Conference Call. I will now be passing the line to [Kevin Maloda], Senior Vice President of Corporate Finance.

Unknown Executive

Thank you, Michelle, and good morning. I'm joined today by Summit Hotel Properties' President and Chief Executive Officer, Jon Stanner and Executive Vice President and Chief Financial Officer, Trey Conkling. Please note that many of our comments today are considered forward-looking statements as defined by federal securities laws. These statements are subject to risks and uncertainties, both known and unknown, as described in our SEC filings.

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

which SEC find Stanner. on referenced Officer, Properties' on www.shpreit.com. Please and of President can at call to our website Summit You earnings financial copies this release, Jon welcome contain our measures and reconciliations non-GAAP Executive filings Hotel Chief

Jonathan Stanner

its our call. thank positioning year progress successful future update outsized as for of and Kevin, conference was and in activity our AFFO resulted will and growth, and XXXX solid ROI-driven in driving year you full recent in quarter per another in and full for our for year the discuss on joining of today of with our operating Thanks, year full I success growth capital all operating role us fourth delivered year meaningful earnings activity, Trey highlight an share XXXX. Summit effective the near-term XXXX another and nearly platform, financial transaction and and XXXX. Today, expenditures our sheet share coupled balance continued our well-executed for XXXX execution X%. strength company Summit, for provide outlook results, transaction

consecutive with third the pro the X.X% year, exceeded the average growth year. For forma company's increasing the industry RevPAR for RevPAR growth

efficient growth EBITDA company difficult year-over-year by forma hotel on basis. Pro and the expectations, continue models. do job efficient year-over-year and comparisons. reliance X.X% increased thesis as hotel operating to to manage management validating by contract maintain tax RevPAR our X.X% of driven team partners turnover margins and significantly more our flat RevPAR business ongoing these our with growth despite surpassed expense just occupied EBITDA operating expensive in a Historically, as less hotel margins. on property pro Our model for further were ability reduce to X% cost to tight our room low year-over-year, In expenses expense level operating as forma and well operating investing XXXX, we environment a terrific controls per has essentially growth managing hotels labor, driven required X%

in predominantly and RevPAR gradual business gains transient recovery Tuesday year, primarily as growth remained Our drove growth for on nights. was by demand and driven XXXX group of the occupancy the demand growth weekday outsized RevPAR through robust Wednesday X% of

recoveries midweek from for believe many Jose. for Louisville, Minneapolis, growth primary were start the in also pandemic. At poised consecutive we While New Francisco for identified outsized market of our as of we two driver it urban and RevPAR markets fundamentals, operating markets including we future the improving the San given San years, growth have these opportunity been Baltimore, biggest the demand growth lagged XXXX, Orleans, has of represents their six

Aside XX% Airport in needs. The minimal dispositions. Corner near-term nominal achieving the $XX had growth of venture of in the industry-leading has Francisco, capital assets net XXXX for nearly X% latter significant brands expect growth to and and hallmark first performed in five for evident income Minneapolis, we improvement acquisitions to is been and markets disciplined RevPAR Tysons XXXX, we've the Inn joint our over for with purchase submarkets hotel was D.C. hotels XXXX our these hotels Boston an for performance with operating dynamic well-located continue from investment develop through this hotel and Inn Hilton X% acquisition the effective attractive well-documented approach, Washington, time. A terrific X.X% X%, we represents assets a in double-digit Orleans grew rate Summit over growth a in cost. value-accretive and discount the the price in ownership, replacement further GIC. Hampton and EBITDA will business capitalization ability this two RevPAR exceed of XX portfolio GIC, and of optimize based through plans our feature all XX%, for operating has Jose, The identify the that Baltimore increase investment since experienced San these taking validating majority creation drove own which XXXX. hotels and culminating RevPAR many The the markets our a the joint manner. and in of of value platform average million and our Logan with In since significant to as XXXX, have Garden continued in vast Operating Boston growth our EBITDA. with remaining the in RevPAR performance achieving venture to portfolio given New strong dynamics two RevPAR ability now exceptionally of which challenges particularly XXXX. operations. We thesis growth in been San market exceeded well, acquired been implement year, opportunities driving levels on strength with the

throughout the basis Over margin revenue that three while nearly strategies RevPAR These improvements period. to same has points operating basis EBITDA our has during index structure. points, management XXX by ability share expanded demonstrate increased our years, identify last the refine hotel and market over cost efficiencies XXX

million past disposition funded needs. nearly have $XX approximately the most a selling XX Our near-term for proceeds, gross hotels been acquisitions over thoughtful strategy, capital by while methodical $XXX of million months and eliminating of XX recent

when foregone price represents to a net approach including the target of resulted dispositions than rate XX-month in requirements. income capitalization blended that the of at CapEx operating sales trailing X% less a Our time sale

favorably NOI disposition premium Importantly, acquisition positive XXX and points compares spread yield our basis the a spread in of acquisition a resulting of activity disposition investment between XX% RevPAR over portfolios. activity, our of to approximately profile our and

basis, long-term our adjusted while the turn Over annual full profile. X% grown by all an nearly the past the EBITDA. years, by XX% on balance portfolio's sheet common over nearly and deleveraged by we've of two EBITDA strengthening a increased dividend growth

drive ROI to designed high growth. invest to incremental projects capital continue EBITDA also We in

this oceanfront completion full are we and location and example, fitness repositioning This Lauderdale guestroom modernized of For center an restaurant. space corridor a re-concepted sits our a will Fort and comprehensive Courtyard public renovation, and with nearing a spring irreplaceable expanded on an Beach relaunch Hotel. hotel of

investment incremental the pool making we at hotel, bar is outdoor a experience expected enhanced Additionally, including that in significant an significant deck the are a to poolside drive and EBITDA.

have portfolio, competitive build supply. opportunities in the it While in intend revenue a top always we been ancillary renovation hotel where significant and has rate performer capture new impossible a to post we to market our virtually is identified

the our Trey, over the year. I call briefly Before turn for to discuss let me outlook

organizations to travel XXXX, strengthen, stable of is are continue. normalizing expect well we group performance driving occupancy and continued the and for remains the top steadily corporate lodging expected and where of business that key line growth Robust we in the recovery to midweek With and trends lead positioned sector growth, in our in as same occupancy enter drove As prioritizing meetings urban improving. expect to ongoing we and budgets demand particularly transient higher conferences, in-person rates markets. many increasingly markets further demand business-oriented XXXX

major in January East for RevPAR across the guidance is winter range Our RevPAR year in resulting markets and midpoint slightly the in growth. X% the month. airport full our closures below X% to storms of tracking South modest first resulted decline Coast, in growth of quarter a

of February, start much by made demand disruption we up strong where Super driven that Orleans, hotels. in have for with to own We a six Bowl-related New

benefits our confident success As XXXX, in mentioned, more efficient are tremendous in operating to we operating strength our are team. our in I our And previously while had XXXX. we the control expenses, model continue ability by the of of difficult managing and expenses comparisons driven operating year-over-year to

industry key most the the relative persistent elevated of hotel supply particularly interest construction costs, of our and constrain construction standards tailwinds is lack continue new as for meaningful development, One significant in rates tight majority markets. the of to long-term lending the higher

that, to call spending outlook capture secular long-term portfolio quality capital improve the through I'll high-quality beyond travel, This XXXX, our stands to disciplined, allocation continue the capital these investments and prioritize effective well approach. and lifestyle a over another habits. growth. We've in the for continued of Summit particularly factors, trajectory we reinforces broadly well-located, overall high-quality lodging expect demand for younger stable lodging. strategic benefit of more in experiences of towards Driven and the Looking year this demographics, solid consumer a to from of destinations to both combination is turn our future favorable portfolio powerful unique their performance a specifically. With with a Summit's trend long-term long-term part goods. Trey. strong as Consumers, accommodations over industry to positioned and the shift material by XXXX expectation industry for

William H. Conkling

and good everyone. morning, Jon, Thanks,

and or and XXX XXX demand, increased points by for driven and respectively, which markets strength our Houston and urban outpaced basis such particular, Hilton for and of for For RevPAR robust urban respectively, room our growth guest suburban to XX%, higher. also in Boston, over as X%, year Chicago, group in continued total and full the Inn that slower suburban highlighted, Growth XX% RevPAR the of was Corner, of In basis year X% the count. and which increased all recover hotels Tysons and of Jon core which our strength portfolios, benefited forma XXXX, Denver, Indianapolis, urban suburban markets previously Airport total Garden Pro X% recent the RevPAR our growth full from Hampton industry by XXXX. Logan in hotels experienced company's XX% which from acquisitions was points, markets driven and our comprised suburban RevPAR Boston respectively. urban Inn but by nearly

positioned the our catalyst group we and forward. demand believe in industry look transient portfolio as we business moving to the serve XXXX, continued for as growth well outperformance for is primary As

expenses metro Hotel the and displacement of was town which of pro Beach on modestly increased metro in Helene RevPAR resort XXXX forward. Pro to Lauderdale for to Turning these North Carolina our two related for Asheville, be year the the portfolios forma in March as assets. of When With metro flat from anticipates repositioning full completed while this as significant Hurricane tailwinds performance XXXX company was to town XXXX, less both in Courtyard the forma Hotel, will year-over-year, moving our resort Indigo and our was assets FFO nearly XXXX XXXX sales on year in RevPAR for adjusting $XXX.X allocation and essentially assets, intense our as resort reduced one Pro these the well XXXX. EBITDA RevPAR transformative Fort expense small primarily forma increased year year. Full benefit accretive small particular, in to declined impact town respectively. Adjusted flow-through X.X%, two improved RevPAR hotel margins hotel company turn. year corporate for prior a positive million, EBITDA full of recent than X% an and modest versus room growth. for continues $XXX.X million that despite has million increased in the to X.X% $X.XX just by $X.XX $XXX.X in The the basis. leverage flat per adjusted XXXX to in management per AFFO to full increase and were $XXX share share essentially from resulted asset XXXX capital and or from per occupied EBITDA focus approximately on X% year XXXX XXXX. decisions, that of million, small

and opportunity labor per benefit urban both growth just quarter to driven XXXX. Contract year, labor, a average basis stabilized X.X% nominal gains points in the to a RevPAR suburban contract year-over-year, as room quarter. COVID occupied quarter full which declined Indianapolis, improvement. forma our markets pro Similar fourth include is rate. XXX operating Chicago, to quarter room trends from XXX as points era from our RevPAR expense portfolios, in versus by forma expense fourth cost occupied and continue was and basis XX% Pro New produced Tampa, Minneapolis increased both further year-over-year Houston, pro below in structure. increased X.X%, cadence growth forma levels, driving of of fourth Orleans, XXXX and outpaced driven and of by Key of exhibit company forma in X%, RevPAR a our quarter portfolio. Moderating of our on representative the continues an RevPAR represents the which fourth significantly Moving reductions or the above the quarter third acceleration basis portfolio growth growth occupancy continued which basis total increases X% all pro expenses X.X% XX.X% now normalized X.X% peak labor levels, costs, to a which but suggesting per more for The basis on fourth respectively.

mostly reduced training in year have results force of see labor in the hotels absorbed. retention, X.X% which year XXXX We also prior the continue increased costs. Full wages to in versus improved employee improvement and been productivity rightsizing as wages

rata was portfolio the portfolio fourth a bottom a invested Pro expense a standpoint, consolidated realized represented in prior points in EBITDA margins XXXX current encouraged or From contracted while $XX.X of positions property on million in over hotel continue million a structure EBITDA difficult $XX.X basis. quarter, $XX.X EBITDA million, taxes baseline XXXX. and was our pro We for million, the expenditure be million in $X.XX to cost XXX line XX to fourth quarter, as comparison quarter due adjusted future basis for modest the company year-over-year $XX.X a tax company was quarter year basis the trends by hotel per growth. and FFO Pro to quarter capital in of share. basis for for the that we how accounting points which forma with our refunds forma $XX.X the on decline fourth the faced fourth decline. Adjusted property

year, resulted positions full the The Courtyard million portfolio of have and Downtown, quality team notable the Center consolidated the profitability Hotel executed XXX December including Asheville, RevPAR and in Haven, to in basis months Dallas SpringHill basis. In Denver the and future. New For and on drive continued Indigo trailing company our in index we a has rata for design Hillsboro. Courtyard $XX.X Grapevine, several company's our pro invested our Tech investment Portland, This construction of ensures on XX XXXX, XXXX. Residence Inn it million a renovations, House Hyatt Suites investment portfolio the ending the a $XX.X

sale Turning unsecured the that $XXX XXXX. proceeds XXXX in February To refinanced asset sheet. capital our we San loan the Airport. repaid which at from million term our MetaBank loan sales, million balance $X allowed term we with to the million $XXX of June, a using the to our Four recap markets company Points in activities, In also a million unsecured loan $XX XXXX discount successfully facilitate Francisco matures new

the Airport Inn acquisition Logan December, venture Hampton company's and the Boston to Corner. in accordion million $XX credit joint its the of Finally, facility Garden the of partially the on GIC Inn fund Tysons drew $XX million Hilton

average liquidity be approximately continue a length We positioned to industry. the interest of with in initiated capital that of maturity well the Overall, and is lower million, observe markets XXXX. leverage continues to approximately ratio $XXX nearly nearly environment three X.X% years, lodging constructive for average very turn sheet total an when full to balance rate of a a than we activity our an disposition

within our over the liquidity XX% its an of result As fixed until we approximately were for maturity January is Board yield interest of On swap with XXXX, of continues debt material does staggered swaps. When at we well any to refinancing investing we company capital a the profile, operating to beyond leverage an capital dividend increases dividend guidance our schedule in to share, midpoint that rate based leaving what outlook growth striking opportunities. Included metrics ample our changes not to Directors and liquidity accounting evening, activity continues common press appropriate This provided of time, operational release guidance assuming corporate strong XXXX, portfolio, or a of has shareholders, AFFO our dividend the rata a significant annualized and the structure, reducing disposition positioned maturities fixed no full room current discussed to to $X.XX a certain have the quarterly company company's our of share. rate is interest balance ratio addition for on pro efforts, preferred The management in maintaining a represents objectives. XX% fixed we prioritize X% exposure effectively our potential of which at E, of per payout declared future a markets environment. growth year and be over no The per our key current include approximately Z approximately XXXX achieve managed F average for rate capital range, acquisition, believe modest a year-end. $X.XX With X% portfolio of between and equity to continues represent items. rate returning our today. consideration share XX% for SOFR after in additional nonoperational interest Series rate dividend last XX, of of

margins XXX range For would our incorporates an to $X per X%, to we At $XXX million to of taxes. adjusted $XXX to growth EBITDA contract to $X.XX property year-over-year, expect of EBITDA the we basis anticipate X% midpoint million from range, approximately FFO points which full share. the headwinds hotel an translates of XX of and to guidance year, adjusted RevPAR range of points higher RevPAR basis XX which

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

Finally, excluding And we of GIC venture the with Summit Summit year. corporate in the promote the size may earn your joint covering the that, will of distributions call annual during fee increased XX% payable to approximately results open income expense, any G&A cash questions. to

Operator

come will (Operator Instructions.) Austin KeyBanc Capital Markets. And our Wurschmidt from first question with

Austin Wurschmidt

and midpoint is over around some had really is can the context quarter relative that to you XX prepared slightly the or through as six January you referenced or to guidance. February, business-oriented of disruption, so? of below Bowl demand full And the weather-related Jon, days. to some your proper three of kind you just Super months the if XX first tracking your you last And how in pace provide that the look Trey of the next year and kind tracking highlighted the in wondering detail booking remarks benefit

Jonathan Stanner

the also BT was of strength Well, driven from little just were have and a closures in January midweek Atlanta February. When for lot what February. Charlotte, of And us. Houston assets, RevPAR and where I related and Dallas a in happened of to think into all that by We a into had which down it pace trends. disruptive I out where finished make in are that choppy rebooked we think, by, February growth, but people month some perspective bit And January did a Bowl to January stable Super And travel. referenced, the Austin of displaced was were booking as our for lot one with storms. There disruptions we of airport and year-over-year. of the were think up New six -- up we a we you we just in see slightly that the look what Orleans, in April, I they ended March that is from fairly think catch-up do

the supported as XXXX the and April to alluded two, saw of in key that's eclipse by the But when expectation solid. kind of of I window peak pace March currently. at all a weeks of is spring trends we break you we Again, booking solar data in one, pace this, March, all Our think of year. continuation we're given for and some difficult looking when little of look yet; at there's kind last and particularly demand the look we're the from that to, comps interpret; hard some year bit not I look at the the of is our

Austin Wurschmidt

portfolios light what for recycle the last is what cobble just you the somewhat you've whether with relatively could maybe continued guys And quiet I'm act and market to two of helpful. be That's in Summit And curious to the years a capital. of kind playbook done transaction look, overall? is consistent small together have next

Jonathan Stanner

hundred been last more of active million of transactions Yes. We say. would most, I We've than year. a did couple dollars

worth we've transactions. XX-plus it of deals, Over we and the did over $XXX XX about million months, done

a thoughtful So, as was being RevPAR, that a lower some capital. lot needed of of in around you of hotels alluded really lot our lower-margin that to, portfolio the

we're the profile what difference I what bought in proud really we so, think just been has the And of one things we've sold. of of versus

portfolio very high-quality we're of kind bottom did portfolio. end months do we manage less XX of have be we trying being we to in said, a low-hanging And thoughtful around have We at of ago. always the the capital our how portfolio. than the That needs fruit

to being So, fair get of sales those a amount asset always we portfolio inquiry we opportunistic our assets. And reverse to on to and redeploy into. what try ultimately around we can sell thoughtful proceeds be

this that transaction-oriented. is I the the the expect ways value we should prepared try transaction remarks, we we that fact do again, And in by continue things, XXXX. to one I of think shareholders been so and think we a the in one create said despite being of us And to for believe to slower environment, it's

Operator

of next question the Asad America. Dany comes And Bank from with

Dany Asad

we're about forma thinking line to just X% much if in pro the guide pretty just X% it's with of Guys, for X%, XXXX. RevPAR under -- your RevPAR of

puts and So, walk maybe and through better us just any us in think about range? what's XXXX there's if if offsets that to to get to wanted takes, can getting we you

Jonathan Stanner

lift this these is The -- less year. from lagging We Look, strength better and markets still rates think driven it markets. Dany, urban sure. group We a expect seen. suburban what BT There growth and of kind midweek. this a still continuation on what last grew think growth that's by consistent in lot of from particular demand of performance And pointed that XX% probably expect ongoing I XXXX. the better in the we markets little is RevPAR side. recovery lot year of we that in Yes, of we've a expect five I a out

normalize expect XXXX. that We in to

a alluded for in That the in on for the numbers. is on that that's I continue the in going there's And to the its first think Courtyard growth to upside I versus Lauderdale. expectations broadly of create a at current kind where do or significant the the half year. think balanced pace. I industry the some Fort of for second XXXX going normalized do industry disruption Summit we think exists of in beginning think quarter little We an renovation and We profile to And in broad asset think particular. our more portfolio speaking, think for in broadly the across the relatively industry that have XXXX. that bit if leisure We XXXX. we there the likely expectations are for broadly upside low kind for it's forecast, to And leisure of segment. upside in the travel -- that's is

Operator

And our next question will come from Michael Bellisario with Baird.

Michael Bellisario

Jon, the sort recently. guess, just referenced? some made. the of changes you changes expense question there those are like that some big picture would on been on better looks changes? then of It one, management kind those you've that management the And I driving sort any company that and has And of turnover of two, thoughts any more to changes around leading come management company Just be maybe changes helpful. front? to flow-through what's

Jonathan Stanner

in of the management slower in certain operations to more in to create where And continuation to happy share otherwise with management made The efficient and efficient of performance last is doing will RevPAR would driven management a thing really changes than beginning a say at we opportunities environment first we companies the general. to our have with an would and a strong we're that the management Look, back what cluster of good year job driving expected point opportunities that the and again, companies incredibly markets. companies management was of Yes. were expense the by grew I of lot year. more market it

we've management contemplating But what I opportunistic again, management think we're companies of moves. has be something our We're we very thoughtful today. it's done the the would the worked we performance and across that But agreements line portfolio continuously nothing with certainly, around say, out additional I always there's expectations happy evaluate. how with the in what trying of allocate are. across that very Today, portfolio. to on we're

Michael Bellisario

and on enough. how Fair December underwriting little you're some Can beyond in then it. how being cap? the about about on transaction returns sort and provide above adjust of that think assets just longer-term you those then vintage? background switching those And for a thinking gears, and acquisitions. of maybe older Got for bit hotels you the terms then [XX] And and

Jonathan Stanner

excited transaction. problem. no we really look, Well, about Yes, were the

you alluded yield it's really to, to I going-in to. get think are gateway as one, of submarkets markets cities. in a strong access These strong just that hard really are

in less both those have relatively We markets. of exposure

those continue performers And to the so next be we several expect strong markets to over years.

We are bought two [Magna], it just off-market assets the bucket. we an from was fit this -- in transaction that

are to hundred underwrote we It's XXX We unlevered what higher underwritten couple XXX our IRRs points are than that points dispositions basis a pre-pandemic. the probably of underwriting we've than IRRs to to basis higher to.

market. has buyer think are And out an interesting a market. that I so, this the we time expectation of come be do is think, to of in kind this Yields higher. The for declines, rate

don't overly perspective for future in from NOI aggressive what an to our in out growth of we're terms have be You underwriting years.

IRRs. translates And into translates going-in can yields, These vintage when assets. particularly period higher so that go you just stronger in that again, at older are hold

have to near-term a despite been the them But keep for likely any again, physical condition. kept We don't needs, vintage we'll towards commence relevant next They out very Boston capital for long some have capital I the their in most the in in renovation of locations years. the And allocated time. year. part, think them very, they've end good a

Operator

comes next Bank. question Woronka Chris And with the Deutsche from

Chris Woronka

getting this a direct, further changes hopefully. But that? in, of out, Are as booking small terms really probably in And noticed or large opportunity this agree your there's than you're into side, the customer -- I there or changes closer you've heading I of versus pattern type any that more anything XXXX the it's corporate throughout Jon, threat seeing is leisure whether of observation, with year? like about an in non-direct, year, any think would are you

Jonathan Stanner

kind initially gradual in all getting booking but of accounts The would local a been traveler. been BT the in of much in XXXX. changes relative changes the to pre-pandemic is slow those it's the meaningful drive-to and recovery type was changed, a has think customer evolution. the window evolved that's that type still we're lengthen, the in have of has to to return. say more There coming expect national of window. starting any bigger, Obviously, business customer regional Yes. patterns of as the BT I more booking started levels, a The short I pandemic, out pandemic. don't we have

feels office up push into of kind continuation the fairly As in the mix a of said, set I corporations back will in and segmentation to significant term. the XXXX. ultimately business to XXXX. I expect is think we've more from from get incremental seen we that just saw do the is changes any that or it we in things XXXX in be what for It channel something lot trends person create stable. booking don't to do longer benefit

Chris Woronka

make of we just of terms but we is new labor this that? in Jon. -- anything into think, changes? even that, year heading so a on a the markets Appreciate not visibility with dovetails availability And think that? successful, of any you on your the might that any this But much or Okay. in very aside, had relative question costs. have Just the that putting Mike's guys need about I And you terms How on on whether in basis, then management managers companies. about changes to XXXX much kind -- unknown in unions, there question labor front, just of anything the -- do any

Jonathan Stanner

increased was it take per second again, I perspective. back a occupied go an X.X% basis. an management stable. Operating will to a incredibly just fairly Look, from feels expense successful year and room XXXX on expenses No.

very RevPAR to flat growth is -X% margins on difficult. essentially us For to sub get

we're for X% So, to outcome. with growth expense pleased kind We've guided XXXX. X% very of the to

do do Our a going than better to lot hope we're a end continue like expense are hotel at the relative be lower of is manage we'll going on where of to broadly. owners growth to We that. basis, other feel able to

side mix, team and that partners as location alluded done on management management our good is the company that. of company Some the But job and of you the at have a very market to.

But the which half back tightening over any the year. in say the in of the is kind do to we expect deceleration assuming they're are at no stable macro to to wage but relatively I in the significant seen wouldn't be And today. kind are wages of XXXX. labor have We growth stable that noticeable we the pace where markets, slowed. like loosening continue it there we've stagnate feel environment, seen at of changes

Chris Woronka

I here. sneak quick in one If could one more

where dispositions. a the if curious decision I'm know as kind to of a it's cases, CapEx forward, there's decision to there stuff CapEx to -- you on do a the selling -- -- as negotiation And think more that there? as market plan do is I a market more any is you're CapEx different just just of it's a a onerous continue going the maybe that or the more like something likely brands lot think of be or it's done Or and decision. you too well Just that?

Jonathan Stanner

think ones a able we've to on weren't very assets felt Chris. well. and was find we transformational we a try assets to it Yes. we the a very obviously good there buyer where that even in that something Look, think going as isn't going more That's to And in traditional Fort objective expectation a would we the that real we XXXX But for pushing our take assets to into renovated and we lift have more than of to primary needed renovation it's underwrite. is Lauderdale we the determination Like where we of a sold expect them. renovation. renovation. underwrite capital, We'll year. X where balance, lift from approach balance is one to sold when big have been not but that to hotels significant our and renovate. single supporters. is for lot renovate return brands We have a their They're get way like there have tried a generally us, XX do input from to The the every renovated, and a

Operator

question R.J. Milligan comes James. with from The Raymond next

R.J. Milligan

with Obviously, for some GIC activity how conversations the the fourth are in I'm appetite your XXXX? now their quarter. and what's just GIC growing JV with curious in

Jonathan Stanner

light It's venture. in has us. the venture the XX Well, of we wonderful and broadly. been they've been environment got partners. kind really for lodging We've the Yes. great almost of in performed and assets particularly The the partnership say backdrop well, very a quarter, as every macro

have continue with, investment joint balancing appropriate they the they obviously think have us. make kind to appetite for our be certainly to sheet to appetite to a to us attractive future of sure continued grow grow to and leverage range. vehicle always venture. with the balance our But managing it want continues I we're look I We that activity the think growth an and to and

R.J. Milligan

capital a increase a the to for seeing favorable mentioned transaction start I'm space. activity? markets what you lodging curious, think Trey, just needs general or meaningful in to more And improve environment happen do you just pretty

William H. Conkling

would acquisitions, capital unsecured need of convert I whether paths markets, a at now, that all standpoint, the from just quite just shift as that bank a you've the you for market balance a those look year. I opened secured our in well. at seen And noticeable the financing refinancing or sheet improving. are it's markets, The different whether we're up from actually Well, new looking crossed of over markets, would I in from the market we say has think as standpoint some the tone think kind you a they're and of accessible bit

definitely accretive X kind an as yields a it mid-Xs able can the in to Jon to But where least and our markets we rates, people other spread are buying from of finance other between classes what and buy. and solid alluded And your be that to so, standpoint, can from the financing at, transactions. I we these perspective, way finance assets there's where like we're to for a underwriting. are feels cap can't the financing to asset at types constructive, of speak the and it's

Operator

with The next Capital. Austin question KeyBanc comes from Wurschmidt

Austin Wurschmidt

last notes maturity? still about how plans convertible a but And the I'm XXXX how segue. the you're be early, curious address good your of you're to thinking kind answer Trey, just might

William H. Conkling

last should the of answer balance piece the I a out year to this paper. repeat It's large-sized it's Yes, a look, It's convert our I -- just a X.X% at obviously sheet. gave maturity is No, point. related you.

that do there's a We're on on looking But best the minimize to table. markets that very variety that there. the the tone the to in we comfortable that we've here obviously all kind think would paths it's are what a kind Austin, would I of of options address something that open have time rate us of at way any makes seen say, of mark-to-market type to capital of XXXX. I be.

markets, well whether the bank As is something or the in bank I as want the unsecured in CMBS, we the particularly become said, market is secured that's it's if access. the convert market there And market has markets, -- that to attractive. actually

part but here confident probably year, So, first banking patient with is very coupon be what be we'll we something of partners on over we'll I to the that's the of think refinance our on existing based our given that the feel refinancing that, that conversations with the kind here. security, able

Operator

show over remarks. no conference Jon would I to the at to time. this closing the I back questions queue for in turn further now like

Jonathan Stanner

over many earnings for you you a Yes. We fourth seeing you. full at our Well, nice few next joining I for forward look weeks. day. upcoming of and thank have today call. all hope conferences you year conference our the all us quarter to Thank

Operator

conference you Thank concludes for participating. This call. today's

now You may disconnect.

Summit Hotel Properties (INN) 25 Feb 252024 Q4 Earnings call transcript