Summit Hotel Properties, Inc.
For the period ended Sep 30, 2026. Filed Nov 3, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 3, 2026
INN$7.00+1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001497645-26-000064
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-03.
0001497645-26-000077
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 166 previous paragraphs and 168 current paragraphs.
104 unchanged; 57 reworded; 4 added; 4 removed; 1 previous and 3 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
•Corporate General and Administrative. Corporate general and administrative expenses increased by $0.3 million during the three months ended September 30, 2026 in comparison with the same period in the prior year as a result of an increase in corporate employee-related costs.
Current report
Other expense, net for the three months ended September 30, 2025 consists primarily of $0.9 million of costs related to property manager transitions, $0.3 million of expensed debt transaction costs related to the refinancing of the 2022 GIC Joint Venture Term Loan with the $400 million 2025 GIC Joint Venture Term Loan, and a net casualty loss of $0.5 million, partially offset by $0.7 million of net third-party tenant income and the realization of approximately $0.6 million of tax rebates related to the NCI Transaction.
Current report
•Management Fees. Management fees increased by $0.4 million during the nine months ended September 30, 2026 driven by an increase in same-store revenues and the effect of amendments to certain property management agreements, which reduced management fees incurred during the nine months ended September 30, 2025.
Current report
In September 2026, we entered into amendments to the 2024 Term Loan and the 2025 Delayed Draw Term Loan (the “Term Loan Amendments”) to revise the pricing of these loans to conform to the interest rate grid under the 2026 Senior Credit Facility. Based on the Company’s leverage levels as of the amendment date, the amendment reduced the applicable interest rates of the 2024 Term Loan and the 2025 Delayed Draw Term Loan by 20 basis points. The 2024 Term Loan was originally scheduled to mature in February 2027. In connection with the Term Loan Amendment, the initial maturity date was extended to February 2028. The Company may further extend the maturity date of the 2024 Term Loan for up to two additional 6-month periods, subject to certain conditions. Additionally, the Term Loan Amendments contain additional modifications to conform to the provisions of our $650 Million Senior Credit Facility.
Removed paragraphs (4)
Previous report
•Management Fees. Management fees were consistent during the three months ended June 30, 2026, as the increase in same-store management fees driven by an increase in same-store revenues, was offset by the reduction in management fees as a result of the sale of the Sold Properties.
Previous report
•Corporate General and Administrative. Corporate general and administrative expenses decreased by $0.9 million during the three months ended June 30, 2026 primarily due to the $1.4 million reduction to stock-based compensation expense resulting from the reversal of previously recognized compensation cost upon the forfeiture of unvested stock awards following the departure of our former Chief Financial Officer, partially offset by a $0.3 million increase incorporate employee-related costs, a $0.2 million increase related to software implementation costs and a $0.2 million increase in professional fees.
Previous report
¹ Not meaningful.
Previous report
•Other Income, net. Other income, net for the six months ended June 30, 2026 consists primarily of third-party tenant income of $1.4 million, the realization of $1.2 million of tax rebates related to the NCI Transaction and other miscellaneous items totaling $0.2 million, partially offset by a net casualty loss of $0.6 million.
Reworded paragraphs (57)
Previous wording
•adverse changes in occupancy, average daily rate (“ADR”) and revenue per available room (“RevPAR”) and other lodging property operating metrics;
Current wording
•changes in occupancy, average daily rate (“ADR”) and revenue per available room (“RevPAR”) and other lodging property operating metrics;
Previous wording
At June 30, 2026, our portfolio consisted of 94 lodging properties with a total of 14,226 guestrooms located in 24 states of the United States of America. We own our lodging properties in fee simple, except for six lodging properties which are subject to ground leases or subleases. As of June 30, 2026, we own 100% of the outstanding equity interests in 52 of the 94 lodging properties. We own a 51% controlling interest in 39 lodging properties through a joint venture that was formed in July 2019 with USFI G-Peak, Ltd. (“GIC”), a private limited company incorporated in the Republic of Singapore (the “GIC Joint Venture”). We also own 90% equity interests in two separate joint ventures (the “Brickell Joint Venture” and the “Onera Joint Venture”). The Brickell Joint Venture owns two lodging properties, and the Onera Joint Venture owns one lodging property.
Current wording
At September 30, 2026, our portfolio consisted of 92 lodging properties with a total of 14,027 guestrooms located in 24 states of the United States of America. We own our lodging properties in fee simple, except for six lodging properties which are subject to ground leases or subleases. As of September 30, 2026, we own 100% of the outstanding equity interests in 50 of the 92 lodging properties. We own a 51% controlling interest in 39 lodging properties through a joint venture that was formed in July 2019 with USFI G-Peak, Ltd. (“GIC”), a private limited company incorporated in the Republic of Singapore (the “GIC Joint Venture”). We also own 90% equity interests in two separate joint ventures (the “Brickell Joint Venture” and the “Onera Joint Venture”). The Brickell Joint Venture owns two lodging properties, and the Onera Joint Venture owns one lodging property.
Previous wording
During the second quarter of 2026, we experienced strong same-store RevPAR growth, driven by an increase in ADR, which offset a slight decline in occupancy. Total portfolio revenue grew year-over-year, primarily from an increase in room revenue with other revenue categories, such as food and beverage and ancillary services, also growing in the period. The current outlook for the industry remains positive, with expectations of sustained growth in room night demand and ADR, supported by limited supply growth and increasing travel demand.
Current wording
During the third quarter of 2026, we experienced strong same-store RevPAR growth driven by increases in both ADR and occupancy. Total portfolio revenue grew year-over-year, primarily from an increase in room revenue with other revenue categories, such as food and beverage and ancillary services, also growing in the period. The current outlook for the industry remains positive, with expectations of sustained growth in room night demand and ADR, supported by limited supply growth and increasing travel demand.
Previous wording
According to current chain scales as defined by STR Global (“STR”), as of June 30, 2026, six of our lodging properties with a total of 954 guestrooms are categorized as Upper-upscale hotels, 71 of our lodging properties with a total of 10,944 guestrooms are categorized as Upscale hotels and 15 of our lodging properties with a total of 2,248 guestrooms are categorized as Upper-midscale hotels. We have two independent lodging properties that are not categorized by STR. Lodging property information at June 30, 2026 is as follows:
Current wording
According to current chain scales as defined by STR, as of September 30, 2026, six of our lodging properties with a total of 954 guestrooms are categorized as Upper-upscale hotels, 69 of our lodging properties with a total of 10,745 guestrooms are categorized as Upscale hotels and 15 of our lodging properties with a total of 2,248 guestrooms are categorized as Upper-midscale hotels. We have two independent lodging properties that are not categorized by STR. Lodging property information at September 30, 2026 is as follows:
Previous wording
(1) Total portfolio information includes the operating results of the Hilton Garden Inn - Longview, TX, which was sold in the first quarter of 2026, from January 1, 2026 through the disposition date of February 20, 2026. Therefore, total portfolio operating results reflect 95 lodging properties for a portion of the period.
Current wording
(1) Total portfolio information includes the operating results of the Courtyard by Marriott, Dallas (Arlington South), TX and the Residence Inn by Marriott, Dallas (Arlington South), TX, which were sold in the third quarter of 2026, from July 1, 2026 through the disposition date of July 22, 2026. Therefore, total portfolio operating results reflect 94 lodging properties for a portion of the period.
Previous wording
(1) Same-store information includes operating results for 94 hotels owned by the Company as of January 1, 2025, and at all times during the three months ended June 30, 2026, and 2025.
Current wording
(2) Same-store information includes operating results for 92 hotels owned by the Company as of January 1, 2025, and at all times during the three months ended September 30, 2026, and 2025.
Previous wording
•Revenues and RevPAR. Room revenues for our total portfolio during the second quarter of 2026 compared with the second quarter of 2025 increased by $5.5 million primarily as a result of an $8.7 million increase in same-store room revenues, partially offset by a $3.2 million decrease due to the sale of three lodging properties (collectively, the “Sold Properties”). The same-store increase was primarily driven by improved strong ADR performance across substantially all of our markets, in addition to incremental demand related to special events in certain markets such as the FIFA 2026 World Cup tournament, as well as ongoing performance improvement from the Courtyard Oceanside Fort Lauderdale Beach following the comprehensive renovation.
Current wording
•Revenues and RevPAR. Room revenues for our total portfolio during the third quarter of 2026 compared with the third quarter of 2025 increased by $6.8 million primarily as a result of an $11.0 million increase in same-store room revenues, partially offset by a $4.2 million decrease due to the sale of five lodging properties subsequent to September 30, 2025 (collectively, the “Sold Properties”). The same-store increase was driven by strong ADR performance across substantially all of our markets, an increase in occupancy across the portfolio, and incremental demand related to special events in certain markets. Additionally, we experienced ongoing performance improvement from the Courtyard Oceanside Fort Lauderdale Beach following a comprehensive renovation.
Previous wording
Occupancy decreased 1.9% and ADR increased by 7.7% for the total portfolio during the second quarter of 2026, which resulted in a 5.6% increase in RevPAR. On a same-store basis, we experienced a decrease of 1.9% in occupancy and a 7.1% increase in ADR during the second quarter of 2026. This resulted in an increase in same-store RevPAR of 5.0%. The increase in ADR was driven by improved performance in higher rated demand segments, notably the retail segment, and broad-based improvements in the corporate negotiated segment.
Current wording
Occupancy increased 1.9% and ADR increased by 6.1% for the total portfolio during the third quarter of 2026, which resulted in an 8.1% increase in RevPAR. On a same-store basis, we experienced an increase of 1.8% in occupancy and a 5.3% increase in ADR during the third quarter of 2026. This resulted in an increase in same-store RevPAR of 7.2%. The increase in ADR was driven by improved performance in higher rated demand segments, notably the retail segment, and broad-based improvements in the corporate negotiated segment.
Previous wording
•Room Expenses. Room expenses for our total portfolio for the second quarter of 2026 compared with the second quarter of 2025 increased $0.2 million as a result of a $0.8 million increase in same-store room expenses primarily related to increases in wages and employee benefits, which were partially offset by decreased utilization of contract labor. The same-store increase was partially offset by a $0.6 million decrease due to the sale of the Sold Properties.
Current wording
•Room Expenses. Room expenses for our total portfolio for the third quarter of 2026 compared with the third quarter of 2025 increased $0.2 million as a result of a $1.2 million increase in same-store room expenses primarily related to increases in wages and employee benefits and contract labor. The same-store increase was partially offset by a $1.0 million decrease due to the sale of the Sold Properties.
Previous wording
•Food and Beverage Revenues and Expenses. Total portfolio food and beverage revenues decreased $0.1 million for the second quarter of 2026 primarily due to a $0.3 million decrease from the sale of the Sold Properties, partially offset by a $0.2 million increase in same-store food and beverage revenues driven by increased banquet and catering sales. Total portfolio food and beverage expenses increased by $0.1 million as a result of a $0.3 million increase in same-store food and beverage expenses due to increases in labor and benefit expenses, partially offset by a $0.2 million decrease due to the sale of the Sold Properties.
Current wording
•Food and Beverage Revenues and Expenses. Total portfolio food and beverage revenues increased by $0.3 million for the third quarter of 2026 primarily due to a $0.6 million increase in same-store food and beverage revenues from increased guest demand, partially from a comprehensive renovation of the Courtyard Oceanside Fort Lauderdale Beach, and strategic initiatives focused on optimizing menu pricing, partially offset by a $0.3 million decrease from the sale of the Sold Properties. Total portfolio food and beverage expenses decreased by $0.1 million primarily as a result of a $0.3 million decrease due to the sale of the Sold Properties.
Previous wording
•Other Lodging Property Operating Revenues and Expenses. Other lodging property operating revenues for our total portfolio during the second quarter of 2026 compared with the second quarter of 2025 increased $0.7 million as a result of a $0.9 million increase in same-store other revenues due to increases in resort and parking fees, partially offset by a $0.2 million decrease due to the sale of the Sold Properties.
Current wording
•Other Lodging Property Operating Revenues and Expenses. Other lodging property operating revenues for our total portfolio during the third quarter of 2026 compared with the third quarter of 2025 increased $1.4 million as a result of a $1.7 million increase in same-store other revenues, partially offset by a $0.3 million decrease due to the sale of the Sold Properties. The same-store increase was primarily attributable to growth in resort and parking fees and our continued focus on increasing guest parking revenue across our portfolio.
Previous wording
The $1.7 million increase in other lodging property operating expenses for the total portfolio for the three months ended June 30, 2026 in comparison with the three months ended June 30, 2025 was attributable to a $3.1 million increase in same-store other lodging property operating expenses partially offset by a $1.4 million decrease due to the sale of the Sold Properties. The same-store increase was driven by increased franchise royalty and related brand fees as well as increased credit card fees, which was commensurate with increases in revenues, and an increase in administrative and general expenses due to increases in wages and earned incentives as a result of improved performance.
Current wording
The $1.9 million increase in other lodging property operating expenses for the total portfolio for the three months ended September 30, 2026 in comparison with the three months ended September 30, 2025 was attributable to a $3.7 million increase in same-store other lodging property operating expenses partially offset by a $1.8 million decrease due to the sale of the Sold Properties. The same-store increase was driven by increased franchise royalty and related brand fees and credit card fees, which was commensurate with increases in revenues, increased maintenance expenses, and an increase in general and administrative expenses due to increases in wages and earned incentives as a result of improved performance.
Previous wording
•Management Fees. Management fees decreased by $0.3 million during the six months ended June 30, 2026 primarily due to certain property management transitions in 2025, which resulted in lower management fees during the six months ended June 30, 2026 and the effect of the sale of the Sold Properties.
Current wording
•Management Fees. Management fees increased by $0.7 million during the three months ended September 30, 2026 primarily due to higher same-store revenues and the effect of amendments to certain property management agreements, which reduced management fees incurred during the three months ended September 30, 2025. This was partially offset by lower management fees resulting from the sale of the Sold Properties.
Previous wording
•Depreciation and Amortization. Depreciation and amortization decreased by $0.8 million during the three months ended June 30, 2026 due to a $0.6 million decrease from the sale of the Sold Properties and a $0.2 million decrease in same-store depreciation and amortization, as the reduction from fully depreciated assets exceeded the depreciation of assets placed in service related to completed renovations.
Current wording
•Depreciation and Amortization. Depreciation and amortization decreased by $1.5 million during the three months ended September 30, 2026 due to a $0.9 million decrease from the sale of the Sold Properties and a $0.6 million decrease in same-store depreciation and amortization, as the reduction from fully depreciated assets exceeded the depreciation of assets placed in service related to completed renovations.
Previous wording
•Interest Expense. Interest expense increased by $1.4 million during the three months ended June 30, 2026, primarily due to the refinancing in February 2026 of the $287.5 million 1.5% Convertible Notes with the $275 million 2025 Delayed Draw Term Loan, which has a higher variable interest rate, partially offset by a slight decrease in variable interest rates and average outstanding debt balances during the current period.
Current wording
•Interest Expense. Interest expense increased by $1.3 million during the three months ended September 30, 2026, primarily due to the refinancing in February 2026 of the $287.5 million 1.5% Convertible Notes with the $275 million 2025 Delayed Draw Term Loan, which has a higher variable interest rate, partially offset by a decrease in the average outstanding debt balance during the current period.
Previous wording
Other income, net for the three months ended June 30, 2025 consists primarily of $0.9 million of third-party tenant income and the realization of approximately $0.3 million of tax rebates related to the NCI Transaction during the period, partially offset by a net casualty loss of $0.4 million.
Current wording
•Other Income (Expense), net. Other income, net for the three months ended September 30, 2026 consists primarily of $0.6 million of net third-party tenant income, the realization of approximately $0.5 million of tax rebates related to the NCI Transaction, and $0.2 million of amortization of key money liabilities, partially offset by a net casualty loss of $0.4 million.
Previous wording
•Income Tax Expense. The Company recorded an income tax benefit of $1.4 million during the three months ended June 30, 2026, compared to an income tax expense of $1.2 million during the same period in the previous year. Income tax expense varies based on changes in our effective tax rate and variability in quarterly net income (loss).
Current wording
•Income Tax Expense. The Company recorded an income tax expense of $0.9 million during the three months ended September 30, 2026, compared to an income tax benefit of $0.4 million during the same period in the previous year. Income tax expense varies based on changes in our effective tax rate and variability in quarterly net income (loss).
Previous wording
Comparison of the Six Months Ended June 30, 2026 with the Six Months Ended June 30, 2025
Current wording
Comparison of the Nine Months Ended September 30, 2026 with the Nine Months Ended September 30, 2025
Previous wording
The following table contains key operating metrics for our portfolio for the six months ended June 30, 2026 compared with the six months ended June 30, 2025 (dollars in thousands, except ADR and RevPAR):
Current wording
The following table contains key operating metrics for our portfolio for the nine months ended September 30, 2026 compared with the nine months ended September 30, 2025 (dollars in thousands, except ADR and RevPAR):
Previous wording
(2) Same-store information includes operating results for 94 hotels owned by the Company as of January 1, 2025, and at all times during the six months ended June 30, 2026, and 2025.
Current wording
(2) Same-store information includes operating results for 92 hotels owned by the Company as of January 1, 2025, and at all times during the nine months ended September 30, 2026, and 2025.
Previous wording
The total portfolio information above for the six months ended June 30, 2026 and 2025 reflects operating results for various portions of each period for certain lodging properties as a result of the sales and acquisitions of lodging properties. The following table details how the acquisition and disposition transactions affect each reporting period:
Current wording
The total portfolio information above for the nine months ended September 30, 2026 and 2025 reflects operating results for various portions of each period for certain lodging properties as a result of the sales of lodging properties. The following table details how the disposition transactions affect each reporting period:
Previous wording
•Revenues and RevPAR. Room revenues for our total portfolio for the six months ended June 30, 2026 compared with the six months ended June 30, 2025 increased by $4.4 million as a result of a $9.3 million increase in same-store room revenues, partially offset by a $4.9 million decrease in room revenues due to the effect of the sale of the Sold Properties. The same-store increase was primarily driven by strong ADR performance across substantially all of our markets, in addition to incremental demand related to special events in certain markets such as the FIFA 2026 World Cup tournament, as well as ongoing performance improvement from the Courtyard Oceanside Fort Lauderdale Beach following the comprehensive renovation.
Current wording
•Revenues and RevPAR. Room revenues for our total portfolio for the nine months ended September 30, 2026 compared with the nine months ended September 30, 2025 increased by $11.2 million as a result of a $19.7 million increase in same-store room revenues, partially offset by an $8.5 million decrease in room revenues due to the effect of the sale of the Sold Properties. The same-store increase was primarily driven by strong ADR performance across substantially all of our markets, in addition to incremental demand related to special events in certain markets. Additionally, we experienced ongoing performance improvements from the Courtyard Oceanside Fort Lauderdale Beach following a comprehensive renovation.
Previous wording
Occupancy decreased by 1.4% and ADR increased by 4.9% for the total portfolio during the six months ended June 30, 2026, which resulted in a 3.4% increase in RevPAR. On a same-store basis, occupancy decreased 1.6% and we experienced a 4.4% increase in ADR during the six months ended June 30, 2026. This resulted in an increase in same-store RevPAR of 2.7% for the six months ended June 30, 2026. The increase in ADR was driven by improved performance in higher rated segments, notably the retail segment, and broad-based improvements in the corporate negotiated segment.
Current wording
Occupancy decreased by 0.3% and ADR increased by 5.3% for the total portfolio during the nine months ended September 30, 2026, which resulted in a 4.9% increase in RevPAR. On a same-store basis, occupancy decreased 0.5% and we experienced a 4.5% increase in ADR during the nine months ended September 30, 2026. This resulted in an increase in same-store RevPAR of 4.0% for the nine months ended September 30, 2026. The increase in ADR was driven by improved performance in higher rated segments, notably the retail segment, and broad-based improvements in the corporate negotiated segment.
Previous wording
•Room Expenses. Room expenses for our total portfolio for the six months ended June 30, 2026 compared with the six months ended June 30, 2025 increased by $0.4 million primarily due to a $1.5 million increase in same-store room expenses driven by increases in wages and employee benefits, which were partially offset by decreased utilization of contract labor. The same-store increase was partially offset by a $1.1 million decrease as a result of the sale of the Sold Properties.
Current wording
•Room Expenses. Room expenses for our total portfolio for the nine months ended September 30, 2026 compared with the nine months ended September 30, 2025, increased by $0.6 million primarily due to a $2.6 million increase in same-store room expenses driven by increases in wages and employee benefits, which were partially offset by decreased utilization of contract labor. The same-store increase was partially offset by a $2.0 million decrease in room expenses as a result of the sale of the Sold Properties.
Previous wording
•Food and Beverage Revenues and Expenses. Total portfolio food and beverage revenues for the six months ended June 30, 2026 increased by $0.4 million due to an $0.8 million increase in same-store food and beverage revenues partially as a result of the completion of the renovation of the Courtyard Oceanside Fort Lauderdale Beach, and increased banquet and catering sales, partially offset by a $0.4 million decrease due to the sale of the Sold Properties. Total portfolio food and beverage expenses increased by $0.6 million, due to a $1.0 million increase in same-store food and beverage expenses primarily due to increases in labor and benefits and costs to support the increase in food and beverage revenues, partially offset by a $0.4 million decrease due to the sale of the Sold Properties.
Current wording
•Food and Beverage Revenues and Expenses. Total portfolio food and beverage revenues for the nine months ended September 30, 2026 increased by $0.7 million due to a $1.4 million increase in same-store food and beverage revenues as a result of increased guest demand, partially from a comprehensive renovation of the Courtyard Oceanside Fort Lauderdale Beach, and strategic initiatives focused on optimizing menu pricing, partially offset by a $0.7 million decrease due to the sale of the Sold Properties. Total portfolio food and beverage expenses increased by $0.5 million, due to a $1.2 million increase in same-store food and beverage expenses primarily due to increases in labor and benefits and costs to support the increase in food and beverage revenues, partially offset by a $0.7 million decrease due to the sale of the Sold Properties.
Previous wording
•Other Revenues and Other Lodging Property Operating Expenses. Other lodging property operating revenues for our total portfolio during the six months ended June 30, 2026 increased by $1.9 million as a result of a $2.3 million increase in same-store other lodging property and operating revenues related to an increase in amenity and parking fees, partially offset by a $0.4 million decrease in other lodging property operating revenues as a result of the sale of the Sold Properties.
Current wording
•Other Revenues and Other Lodging Property Operating Expenses. Other lodging property operating revenues for our total portfolio during the nine months ended September 30, 2026 increased by $3.4 million as a result of a $4.0 million increase in same-store other lodging property operating revenues, partially offset by a $0.6 million decrease in other lodging property operating revenues as a result of the sale of the Sold Properties. The same-store increase was primarily attributable to higher resort and parking fees for the current period.
Previous wording
The $3.5 million increase in other lodging property operating expenses for the total portfolio for the six months ended June 30, 2026 was driven by a $5.7 million increase in same-store other lodging property operating expenses, partially offset by a $2.3 million decrease due to the sale of the Sold Properties. The same-store increase was driven by increased franchise royalty and related brand fees as well as increased credit card fees, which was commensurate with increases in revenues, and an increase in administrative and general expenses due to increases in wages and earned incentives as a result of improved performance.
Current wording
The $5.3 million increase in other lodging property operating expenses for the total portfolio for the nine months ended September 30, 2026 was driven by a $9.2 million increase in same-store other lodging property operating expenses, partially offset by a $3.9 million decrease due to the sale of the Sold Properties. The same-store increase was driven by increased franchise royalty and related brand fees and credit card fees, which was commensurate with increases in revenues, and an increase in general and administrative expenses due to increases in wages and earned incentives as a result of improved performance.
Previous wording
The following table includes other consolidated income and expenses for the six months ended June 30, 2026 compared with the six months ended June 30, 2025 (dollars in thousands):
Current wording
The following table includes other consolidated income and expenses for the nine months ended September 30, 2026 compared with the nine months ended September 30, 2025 (dollars in thousands):
Previous wording
•Property Taxes, Insurance and Other. The $0.4 million increase in Property taxes, insurance and other during the six months ended June 30, 2026 is due to a $0.9 million increase in same-store property taxes, insurance and other, partially offset by a $0.5 million decrease as a result of the sale of the Sold Properties. The same-store increase is primarily due to an increase in property taxes as a result of higher cash refunds in the comparable prior year period due to successful appeals and increased property assessments in certain locations for the current period, partially offset by a decrease in insurance premiums due to favorable renewal rates in the current period for our property and casualty insurance.
Current wording
•Property Taxes, Insurance and Other. Property taxes, insurance and other were relatively consistent during the nine months ended September 30, 2026. Same-store property taxes increased $1.2 million due to a decrease in cash refunds from successful appeals received in the current year period compared to the prior year period, and an increase in property tax assessments in certain locations during the current period. This increase was offset by a $0.5 million decrease in property taxes as a result of the sale of the Sold Properties, a $0.5 million decrease in insurance premiums due to favorable renewal rates on our property and casualty insurance policy, and a $0.3 million decrease in franchise taxes.
Previous wording
•Depreciation and Amortization. Depreciation and amortization decreased by $1.3 million during the six months ended June 30, 2026 compared with the six months ended June 30, 2025 primarily due to the sale of the Sold Properties, partially offset by additional depreciation expense related to assets placed in service since the prior year period as a result of completed renovations.
Current wording
•Depreciation and Amortization. Depreciation and amortization decreased by $2.8 million during the nine months ended September 30, 2026 compared with the nine months ended September 30, 2025 primarily due to a $2.5 million decrease from the sale of the Sold Properties and a $0.3 million decrease in same-store depreciation and amortization as the reduction from fully depreciated assets exceeded the depreciation of assets placed in service related to completed renovations.
Previous wording
•Corporate General and Administrative. Corporate general and administrative expenses decreased by $0.6 million during the six months ended June 30, 2026, primarily due to the $1.4 million reduction in stock-based compensation expense resulting from the reversal of previously recognized compensation cost upon the forfeiture of unvested stock awards following the departure of our former Chief Financial Officer, partially offset by a $0.5 million increase in corporate employee-related costs and a $0.2 million increase due to software implementation costs.
Current wording
•Corporate General and Administrative. Corporate general and administrative expenses decreased by $0.3 million during the nine months ended September 30, 2026, primarily due to a $0.8 million net decrease in stock-based compensation and other employee-related costs, partially offset by a $0.5 million increase in professional fees.
Previous wording
•Interest Expense. Interest expense increased by $1.9 million during the six months ended June 30, 2026 primarily due to the refinancing in February 2026 of the $287.5 million 1.5% Convertible Notes with the $275 million 2025 Delayed Draw Term Loan, which has a higher variable interest rate and an increase in amortization of debt issuance costs, offset by a decrease in variable interest rates and average outstanding debt balances during the current period.
Current wording
•Interest Expense. Interest expense increased by $3.2 million during the nine months ended September 30, 2026 primarily due to the refinancing in February 2026 of the $287.5 million 1.5% Convertible Notes with the $275 million 2025 Delayed Draw Term Loan, which has a higher variable interest rate and an increase in amortization of debt issuance costs, offset by a decrease in variable interest rates and the average outstanding debt balance during the current period.
Previous wording
•Other Income, net. Other income, net for the three months ended June 30, 2026 consists primarily of $0.8 million of third-party tenant income and the realization of approximately $0.6 million of tax rebates related to the NCI Transaction during the period, partially offset by a net casualty loss of $0.3 million and debt transaction costs of $0.1 million.
Current wording
•Other Income, net. Other income, net for the nine months ended September 30, 2026 consists primarily of net third-party tenant income of $2.0 million, the realization of $1.7 million of tax rebates related to the NCI Transaction, and $0.5 million of amortization of key money liabilities, partially offset by a net casualty loss of $1.0 million and debt transaction costs of $0.2 million.
Previous wording
Other income, net for the six months ended June 30, 2025 consists primarily of third-party tenant income of $1.6 million, the realization of $0.9 million of tax rebates related to the NCI Transaction and other miscellaneous items totaling $0.2 million, partially offset by a net casualty loss of $0.7 million.
Current wording
Other income, net for the nine months ended September 30, 2025 consists primarily of net third-party tenant income of $2.3 million, the realization of $1.6 million of tax rebates related to the NCI Transaction, and $0.4 million in amortization of key money liabilities, partially offset by a net casualty loss of $1.2 million, $0.9 million of costs related to property manager transitions, and $0.3 million of expensed debt transaction costs related to the refinancing of the 2022 GIC Joint Venture Term Loan with the $400 million 2025 GIC Joint Venture Term Loan.
Previous wording
•Income Tax Expense. The Company recorded $0.5 million in income tax benefit for the six months ended June 30, 2026, which represents a decrease of $2.5 million from the six months ended June 30, 2025. Income tax expense varies based on changes in our effective tax rate and variability in net income (loss).
Current wording
•Income Tax Expense. The Company recorded $0.3 million in income tax expense for the nine months ended September 30, 2026, which represents a decrease of $1.2 million from the nine months ended September 30, 2025. Income tax expense varies based on changes in our effective tax rate and variability in net income (loss).
Previous wording
We make additional adjustments to EBITDAre when evaluating our performance, such as adjustments related to the provision for credit losses, 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 on-going 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.
Current wording
We make additional adjustments to EBITDAre when evaluating our performance, such as adjustments related to the provision for credit losses, 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.
Previous wording
The following is an unaudited reconciliation of our Net income, determined in accordance with GAAP, to EBITDA, EBITDAre and Adjusted EBITDAre, (in thousands):
Current wording
The following is an unaudited reconciliation of our Net loss, determined in accordance with GAAP, to EBITDA, EBITDAre and Adjusted EBITDAre, (in thousands):
Previous wording
Adjusted EBITDAre increased $3.9 million for the three months ended June 30, 2026 in comparison with the three months ended June 30, 2025. The increase is primarily due to improved operating performance, partially offset by the sale of the Sold Properties. Adjusted EBITDAre increased $3.1 million for the six months ended June 30, 2026 in comparison with the six months ended June 30, 2025. The increase is primarily due to improved operating performance in the second quarter of 2026, partially offset by the sale of the Sold Properties.
Current wording
Adjusted EBITDAre increased $4.6 million for the three months ended September 30, 2026 in comparison with the three months ended September 30, 2025. The increase is primarily due to improved operating performance, partially offset by the sale of the Sold Properties. Adjusted EBITDAre increased $7.7 million for the nine months ended September 30, 2026 in comparison with the nine months ended September 30, 2025. The increase is primarily due to improved operating performance during the period, partially offset by the sale of the Sold Properties.
Previous wording
The following is an unaudited reconciliation of our Net income, determined in accordance with GAAP, to FFO and AFFO (in thousands, except per share/unit amounts):
Current wording
The following is an unaudited reconciliation of our Net loss, determined in accordance with GAAP, to FFO and AFFO (in thousands, except per share/unit amounts):
Previous wording
AFFO applicable to shares of common stock and Common Units increased by $2.2 million for the three months ended June 30, 2026 compared with the three months ended June 30, 2025. The increase is primarily due to improved operating performance, partially offset by increased interest expense due to the refinancing of the $287.5 million 1.5% Convertible Notes with the $275 million 2025 Delayed Draw Term Loan in February 2026 and the sale of the Sold Properties.
Current wording
AFFO applicable to shares of common stock and Common Units increased by $3.0 million for the three months ended September 30, 2026 compared with the three months ended September 30, 2025. The increase is primarily due to improved operating performance, partially offset by increased interest expense due to the refinancing of the $287.5 million 1.5% Convertible Notes with the $275 million 2025 Delayed Draw Term Loan in February 2026 and the sale of the Sold Properties.
Showing the first 40 of 57 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
•Property Taxes, Insurance and Other. Property taxes, insurance and other decreased by $0.5 million during the three months ended September 30, 2026. The decrease was primarily driven by a $0.2 million decrease in insurance premiums due to favorable renewal rates in the current period for our property and casualty insurance, combined with a $0.1 million decrease in property taxes from refunds due to successful appeals, and a $0.1 million decrease in franchise taxes.
Current report — wording carried from elsewhere
(1) Total portfolio information includes the operating results of the Hilton Garden Inn - Longview, TX, which was sold in the first quarter of 2026, and the Courtyard by Marriott, Dallas (Arlington South), TX and the Residence Inn by Marriott, Dallas (Arlington South), TX, which were sold in the third quarter of 2026. Therefore, total portfolio operating results reflect 95 lodging properties for a portion of the period.
Current report — wording carried from elsewhere
The net change in working capital each period can vary based on the timing and amounts incurred of working capital components and the timing of payments. The increase is primarily due to improved operating performance and changes in working capital, partially offset by increased interest expense due to the refinancing of the $287.5 million 1.5% Convertible Notes with the $275 million 2025 Delayed Draw Term Loan in February 2026 and the sale of the Sold Properties.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
•Property Taxes, Insurance and Other. Property taxes, insurance and other decreased by $0.1 million during the three months ended June 30, 2026 as a result of a $0.3 million decrease from the sale of the Sold Properties, partially offset by a $0.2 million increase in same-store property taxes, insurance and other.