Summit Hotel Properties, Inc. (NYSE:INN) Q3 2020 Earnings Conference Call November 4, 2020 9:00 AM ET
Adam Wudel – SVP of Finance
Dan Hansen – Chairman, President and CEO
Jon Stanner – EVP and CFO
Conference Call Participants
Michael Bellisario – Baird
Neil Malkin – Capital One Securities
Austin Wurschmidt – KeyBanc Capital Markets
Dany Asad – Bank of America Merrill Lynch
Chris Woronka – Deutsche Bank
Bill Crow – Raymond James
Good morning, and thank you for standing by, and welcome to Summit Hotel Properties Inc. Third Quarter 2020 Earnings Conference Call. At this time, all participants’ lines are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded [Operator Instructions].
I would now like to hand the conference over to your speaker today, Adam Wudel, Senior Vice President of Finance and Capital Markets. Please go ahead.
Thank you, Sarah, and good morning. I am joined today by Summit Hotel Properties, Chairman, President and Chief Executive Officer, Dan Hansen; and Executive Vice President and Chief Financial Officer, Jon Stanner.
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 2019 Form 10-K and other SEC filings.
Forward-looking statements that we make today are effective only as of today, November 4, 2020, 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.shpreit.com.
Please welcome, Summit Hotel Properties, Chairman, President and Chief Executive Officer, Dan Hansen.
Thanks, Adam. And thank you all for joining us today for our third quarter 2020 earnings conference call. The third quarter was again challenging for our industry as leisure travel continued to serve as the primary demand source. However, we were encouraged by the continued sequential demand improvements, which led to operating results that were considerably better than the second quarter.
RevPar improved each month of the quarter across our portfolio. And importantly, this trend continued into October which provided us with some level of reassurance of the sustainability of demand in the weeks following Labor Day, a period of significant uncertainty heading into the quarter.
Occupancy increased each month of the quarter peaking at 47% in September, which led to third quarter RevPar of $47, a 63.5% decline year-over-year. But that was a significant improvement from the second quarter RevPar of $23.
Market share gains were substantial once again in the third quarter, as we finished with 151% RevPar index, an increase of approximately 39 percentage points compared to the third quarter of last year, and an 8 percentage point increase relative to last quarter. These gains reflect a tremendous work done by our in house asset and revenue management teams, along