Summit Hotel Properties, Inc.

Good day, and thank you for standing by. Welcome to the Summit Hotel Properties Inc. fourth quarter 2025 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 1-1 on your telephone. You will then hear an automated message advise your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Kevin Malotta. Please go ahead, sir.

Thank you, operator, and good morning. I'm joined today by Summit Hotel Properties President and Chief Executive Officer John Stanner and Executive Vice President and Chief Financial Officer Trey Conklin. 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. Forward-looking statements that we make today are effective only as of today, February 26, 2026, and we undertake no duty to update them later. You can find copies of our SEC filings and earnings release, which contain reconciliations to non-GAAP financial measures referenced on this call, on our website at www.shpreet.com. Please welcome Summit Hotel Properties President and Chief Executive Officer John Stanner.

Thank you, Kevin, and good morning, everyone. Thank you for joining us today for our fourth quarter and full year 2025 earnings conference call. As I reflect on last year, I'm pleased with how we executed in what was a complex and challenging operating environment. Coming out of the first quarter, we understood the year would be defined by uncertainty surrounding macroeconomic conditions, demand visibility, and certain policy-related headwinds. And I'm proud of how our teams responded. Throughout the year, we remain disciplined and focused on the aspects of the business we can control. Growing market share, managing expenses, strengthening the balance sheet, allocating capital prudently, and investing in our portfolio to best position Summit for long-term shareholder value creation. On today's call, we will provide details on our fourth quarter and full year 2025 results. offer our perspective on the current lodging environment and our outlook for 2026, and highlight our recent capital recycling and balance sheet activities. In the fourth quarter, we experienced an encouraging positive inflection in demand compared to the second and third quarter of 2025, as RevPAR trends improved sequentially by over 200 basis points, resulting in a fourth quarter same-store RevPAR decline of 1.6%. Demand patterns generally stabilized throughout the quarter, despite the incremental pressure created by the October government shutdown. In particular, midweek results reflect stable underlying group demand and growing corporate travel, which allowed us to increase rates in each of these segments for both the fourth quarter and full year. Government and international inbound demand, which combined represent approximately 10 to 15 percent of total room nights across our portfolio, continued to create meaningful headwinds in the quarter, declining approximately 20% on a blended basis. Excluding these two segments, our fourth quarter REVPAR grew by approximately 60 basis points year over year, reflecting the overall relative strength of other segments. These are encouraging trends as we move into 2026, particularly with easier government demand comparisons on the horizon. Our teams continue to do a terrific job growing market share, with our fourth quarter RevPar index improving by 220 basis points to an index of 117, reflecting the high-quality nature and locational strength of our portfolio, complemented by our expertise in revenue management. We are approaching, and in many markets surpassing, all-time post-pandemic market share highs across our portfolio. For the full year, same store rev par declined 1.8%, driven predominantly by lower average daily rates as demand shifted towards lower rated segments starting late in the first quarter when the significant reduction in government demand first began to materialize. While weakness in government demand in international inbound travel has been well documented, it is important to emphasize that demand patterns in other segments have been stable. and we are expecting year-over-year results to improve as comparisons ease starting in the second quarter. From a capital allocation perspective, we continued to execute on our disciplined capital recycling strategy during the fourth quarter, closing on the sale of two non-core hotels, the 107-room Courtyard Amarillo Downtown, which was owned in our joint venture with GIC, and the wholly-owned 123-room Courtyard Kansas City Country Club Plaza, These dispositions generated aggregate gross proceeds of $39 million, reflecting a blended yield of 4.3% based on trailing 12-month net operating income after consideration of approximately $10 million of foregone near-term capital expenditures. In addition, last week, we closed on the sale of the 122-room Hilton Garden Inn in Long Beach, Texas, another non-core asset owned in our GIC joint venture. The $12.3 million sale price represented a 6.7% capitalization rate based on the estimated trailing 12-month net operating income after consideration of approximately $2.6 million of foregone near-term capital expenditures. These three assets had a blended rev par of $89, a nearly 30% discount to the current pro forma portfolio. Since 2023, we have sold 13 non-core hotels, generating approximately $200 million of gross proceeds and eliminating nearly $60 million of anticipated capital expenditures and an approximate 4.6% net operating income capitalization rate. These sales reflect our disciplined approach to monetizing lower growth capital intensive assets and redeploying proceeds to enhance liquidity, reduce leverage, and support higher return uses across the portfolio. As we turn to 2026, we believe the fundamental setup for our industry is improving, and several company-specific tailwinds position Summit for a positive year. We expect demand trends broadly to continue to improve, and year-over-year comparisons to ease as we move through the year. Historically low levels of new supply support incremental demand growth, translating into both occupancy and rate gains in 2026, and for the foreseeable future. While we remain mindful of near-term volatility, we believe these trends create a more constructive backdrop for top-line growth in 2026. With that context, we're introducing our initial outlook for the year. Trey will walk through the details of our ranges later in the call, but broadly speaking, our guidance reflects modest top-line growth supported by improving fundamentals, disciplined expense management, and the cumulative benefits of our capital reinvestment and recycling efforts. which have enhanced our portfolio and strengthened the balance sheet. The company is poised to benefit from several special events in 2026, notably the FIFA World Cup. We have exposure to six World Cup host markets, which together account for nearly 60% of the matches played domestically, providing a unique demand tailwind in June and July. In addition, convention and special events calendars are favorable in several of our key markets, and we expect continued normalization of government-related demand and international inbound travel as year-over-year comparisons begin to ease in the second quarter. We expect full-year 2026 REVPAR to range from flat to up 3%, driven predominantly by gains in average daily rates. While our outlook for the full year is constructive, we expect the first quarter to be the most difficult of the year, with REVPAR trending in line with our fourth quarter 2025 results. January REVPAR declined approximately 3%, despite a strong start to the month, as Winter Storm Fern created a significant disruption across our portfolio. We also faced difficult comparisons in the quarter, as our first quarter last year benefited from incremental demand created by natural disasters in Florida and California. and Super Bowl 59 being hosted in New Orleans, where we have six hotels. February represents our most difficult comparison of the quarter, as portfolio rev par increased over 7% last year. Finally, the majority of our first quarter of last year was insulated from the significant reduction in government demand we experienced for the remainder of the year. Despite these challenges, our outlook is trending positives. as March pace is down less than 1% year-over-year and April pace is up year-over-year, reflecting the ongoing gradual improvement in demand patterns we see across the portfolio. It is important to highlight these pace improvements come at a time of the year prior to lapping the sharp pullback in government demand we experienced last year over the same period, making these trends even more encouraging. In summary, we believe our industry is beginning 2026 with modest expectations but with meaningful upside driven by the continued improvement in several of the demand patterns we are already experiencing in our business. Longer term, we are poised to benefit from an extended period of low supply growth and the ongoing societal prioritization of travel and experiences. Summit is uniquely positioned to benefit from these conditions given our high quality portfolio efficient cost structure, and strong balance sheet. Our priorities in 2026 remain clear, a continued relentless focus on optimizing hotel profitability, prudently allocating capital, and strengthening our balance sheet, all of which will drive long-term shareholder value. With that, I will turn the call over to Trey to walk through the financial results and balance sheet in more detail.