Summit Hotel Properties Sells Hilton Garden Inn Longview for $12.3M in Ongoing Capital Recycling Push

Summit Hotel Properties, Inc. (NYSE: INN) sold the Hilton Garden Inn in Longview, Texas for $12.3 million during the fourth quarter of 2025, the Austin-based hospitality real estate investment trust announced on February 25, 2026, as part of its broader capital recycling strategy aimed at shedding non-core assets and shoring up its balance sheet.

The Longview disposition was one of several hotel sales completed in Q4 2025 and the first quarter of 2026 that together generated gross proceeds exceeding $51 million, according to the company's earnings release. Since 2023, Summit Hotel Properties has sold approximately $200 million worth of assets at a blended capitalization rate of less than 5%, while eliminating roughly $13 million in near-term required capital expenditures tied to the most recently sold properties. The company also noted it preserved nearly $60 million that would have been required for near-term renovations across the sold assets.

Q4 and Full-Year 2025 Financial Results

Summit Hotel Properties reported a net loss attributable to common stockholders of $6.0 million, or $0.06 per diluted share, in the fourth quarter of 2025, compared to net income of $0.7 million, or $0.01 per diluted share, in Q4 2024. Full-year 2025 financial results, including total annual revenue figures, were disclosed in the earnings release but are not fully detailed in the available source excerpt.

Same-store revenue per available room (RevPAR) declined 1.6 percent year-over-year to $115.34 in Q4 2025, with same-store average daily rate (ADR) falling 1.0 percent to $162.69. The company noted that RevPAR growth improved 240 basis points sequentially from the third quarter, citing stabilization despite headwinds from reduced international inbound travel and lower government demand — the latter exacerbated by a prolonged U.S. government shutdown in the fourth quarter.

"Demand across our portfolio stabilized in the fourth quarter, with RevPAR growth improving 240 basis points sequentially, despite continued headwinds created by lower international inbound travel and reduced government demand, which was exacerbated in the fourth quarter by the prolonged government shutdown," said Jonathan P. Stanner, President and Chief Executive Officer of Summit Hotel Properties. "Our teams continue to execute effectively in a complex operating environment, highlighted by our ability to drive market share gains and manage expenses to optimize profitability."

Capital Recycling Strategy

The Hilton Garden Inn Longview sale is part of a disposition program Summit Hotel Properties has pursued since 2023. Two of the recent sales were executed through the company's joint venture with GIC.

"Our capital recycling program continued in the fourth quarter with the sale of two non-core hotels, and we subsequently completed the sale of an additional non-core hotel in the first quarter of 2026," Stanner said. "These asset sales — including two through our joint venture with GIC — generated gross proceeds of over $51 million and eliminated approximately $13 million of required near-term capital expenditures. Since 2023, we have sold approximately $200 million of assets at a blended capitalization rate of less than 5%, while preserving nearly $60 million that would have been required for near-term renovations."

Balance Sheet and Refinancing

Alongside the Q4 results, Summit disclosed the refinancing of its convertible notes through a delayed draw term loan, eliminating near-term maturity risk. The company reported no debt maturities until 2028, which management highlighted as a sign of balance sheet stability.

"Our balance sheet remains in a position of strength, supported by ample liquidity and no debt maturities until 2028," Stanner said.

2026 Outlook

Looking ahead, Summit Hotel Properties expressed cautious optimism for 2026, citing several demand catalysts. The company noted that FIFA World Cup matches are scheduled in six of its markets, which management expects to drive special event demand. Corporate transient and group travel demand are also projected to grow, and government travel comparisons are expected to ease following the disruptions of 2025.

"Looking ahead, we are optimistic fundamentals will strengthen in 2026, supported by strong special event demand — including World Cup matches in six of our markets — continued growth in corporate transient and group demand, and easing government travel comparisons," Stanner said.

About Summit Hotel Properties

Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded select-service hotels. The company operates a joint venture with GIC, the Singapore-based sovereign wealth fund, through which a portion of its hotel assets are held. Summit's shares trade on the New York Stock Exchange under the ticker INN.

This article contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act. Actual results may differ materially from those projected.

Sources:
Summit Hotel Properties Q4 and Full Year 2025 Earnings Release, February 25, 2026. https://investor.shpreit.com/news-events/news/news-details/2026/SUMMIT-HOTEL-PROPERTIES-REPORTS-FOURTH-QUARTER-AND-FULL-YEAR-2025-RESULTS--2026-jPgpGXl2is/default.aspx