Upscale lodging REIT Summit Hotel Properties posted its strongest quarterly operating metrics of 2026 in the third quarter, with pro forma revenue per available room rising 7.2% year-over-year to $126.17 — a result that exceeded company expectations and prompted management to raise full-year guidance for the second consecutive quarter.

The 92-property portfolio, which spans 24 states and 14,027 guestrooms, generated pro forma hotel EBITDA of $60.4 million for the quarter ended September 30, 2026, up 14.4% from $52.8 million in the same period of 2025. Hotel EBITDA margins expanded 191 basis points to 32.6%, reflecting pricing power that outpaced expense growth. Pro forma average daily rate climbed 5.3% to $167.95, while occupancy ticked up 1.8 percentage points to 75.1%.

Demand Behind the Numbers

The quarter's performance was driven by what President and Chief Executive Officer Jonathan Stanner described as broad-based demand growth across virtually all markets and every demand segment. Business transient travel showed the most pronounced acceleration, particularly midweek bookings in urban locations — a segment that hospitality industry analysts have tracked closely as a bellwether for sustained lodging recovery. Group demand remained consistently strong. Total revenues for the quarter reached $185.7 million, up from $177.1 million a year earlier, with the company's food and beverage operations contributing $10.3 million, a modest gain versus the prior-year period. Adjusted EBITDAre increased 11.8% to $43.9 million, and Adjusted FFO rose 13.9% to $24.2 million, or $0.20 per diluted share.

Balance Sheet and Portfolio Moves

Summit also used the quarter to reduce borrowing costs and tighten its capital structure. In September 2026, the company repriced its $200 million and $275 million delayed draw term loan facilities, aligning their pricing grids with its recently amended $650 million senior credit facility. The combined amendments produced an initial 20 basis point reduction in the applicable interest rate, followed by an additional 15 basis point cut tied to improved leverage ratios — changes the company expects to generate approximately $2.4 million in annual interest expense savings. As of September 30, the company carried $1.1 billion in pro rata debt at a weighted average rate of 5.50%, with no maturities until 2028 and approximately $350 million of total liquidity.

On the transactions side, Summit completed the July 2026 sale of two Dallas-area Marriott-branded hotels — a 103-room Courtyard and a 96-room Residence Inn — for a combined $19.0 million. Since 2023, the company and its affiliates have sold 15 hotels for approximately $219.0 million. The disposed properties carried a combined RevPAR of $86, roughly 30% below the current portfolio average, reflecting a deliberate strategy to concentrate ownership in higher-performing assets. This kind of portfolio optimization in upscale lodging has become a defining characteristic of institutional hotel owners navigating the post-pandemic demand landscape.

For full-year 2026, Summit raised its pro forma RevPAR growth guidance to a range of 3.50% to 4.50% and lifted its Adjusted EBITDAre outlook to $181 million–$186 million. Adjusted FFO guidance moved to $102.5 million–$107.5 million, or $0.85–$0.89 per diluted share. The board declared a quarterly common dividend of $0.08 per share, payable November 30, 2026.

Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.