Summit Hotel Properties reported its first-quarter 2025 financial results, showing a net loss attributable to common stockholders of $4.684 million, compared to a loss of $2.116 million in Q1 2024. Net loss per diluted share was $0.04, versus $0.02 in the prior year. Total revenues for the quarter were $184.478 million, a decrease from $188.142 million in Q1 2024, and Adjusted FFO per diluted share was $0.22, down from $0.24. Analysts surveyed by Zacks Investment Research had an average estimate of $0.21 per share for funds from operations, which the company's reported $0.22 per share beat.
Despite the decline in some financial metrics, the company's same-store RevPAR increased by 1.5%, and hotel EBITDA margin contracted by less than 50 basis points, reflecting effective expense management. However, lodging demand softened in early March, primarily due to weaker government and inbound international travel. The company confirmed the closing of its $275 million delayed draw term loan facility on March 27, 2025, which is intended to refinance the majority of its convertible notes maturing in February 2026.
In a move to return capital to shareholders, the Board of Directors authorized a $50 million share repurchase program on April 29, 2025. The company also reduced its capital expenditure expectations for full-year 2025 to a range of $60 million to $70 million on a pro rata basis. Due to softening demand trends and broader macroeconomic volatility, the company's performance is currently tracking toward the lower end of its previously provided full-year guidance ranges for Adjusted EBITDAre, Adjusted FFO, and Adjusted FFO per share.
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