Summit Hotel Properties, Inc. (NYSE: INN), a leading hospitality real estate investment trust (REIT), has secured a $275 million unsecured delayed draw term loan facility to support its refinancing efforts and general corporate needs. This strategic financial move underscores the company’s commitment to maintaining a robust capital structure while positioning itself for long-term growth in the evolving hospitality landscape.
With a diverse portfolio of premium-branded hotels across the U.S., Summit’s latest financial arrangement—backed by multiple lenders including Bank of America—offers flexible financing options, allowing the company to draw funds until March 1, 2026. The loan includes an accordion feature, enabling an additional $50 million in commitments, with an initial maturity date of March 27, 2028, and potential extensions through 2030.
This capital injection comes as Summit Hotel Properties continues to optimize its portfolio and enhance operational efficiencies. In its latest earnings report, the company posted stronger-than-expected financial results, including an adjusted funds from operations (AFFO) of $119.2 million, reflecting a 6% increase year-over-year. Despite moderate RevPAR growth of 1.8%, the company maintained stable hotel EBITDA margins, demonstrating its ability to navigate market fluctuations.
Summit recently expanded its portfolio with the acquisition of Hampton Inn Boston Logan Airport and Hilton Garden Inn Tysons Corner for $96 million in a joint venture with GIC, reinforcing its strategic focus on high-demand urban markets. Looking ahead, the company expects RevPAR growth of 1-3% in 2025, with an adjusted EBITDA projection between $184 million and $198 million.
This financial maneuver aligns with Summit Hotel Properties’ long-term vision of enhancing shareholder value, optimizing capital deployment, and sustaining operational resilience. With a keen focus on asset management, revenue optimization, and strategic acquisitions, the company is well-positioned to thrive in the evolving hospitality sector.
