$INN CEO discusses what's in store for the REIT lodging sector in 2025 #shorts #hotel #reits

🎥 Dec 04, 2024 📺 Nareit1 ⏱ 0m 👁 634 views

Summit Hotel Properties CEO Jonathan Stanner gives us his insights. #HospitalityTrends #RevPAR #Growth2025 #TravelIndustry ...

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About Jonathan Stanner

Jonathan Stanner, president and CEO of Summit Hotel Properties, said at Nareit’s REITweek: 2026 Investor Conference that the company’s 2026 results have exceeded its initially modest expectations. He noted that fundamentals improved notably in March and April, with broad-based demand and particular strength in midweek travel and urban markets. Stanner stated that the company has been a net seller of assets over the last two years, raising over a quarter billion dollars through dispositions of properties in lower revenue, lower margin, and lower growth markets, and that it expects to continue selling assets in the near to medium term. Stanner also said that the company is optimistic about demand trends, citing very little supply growth in the lodging industry and better top-line growth and profitability. He reported that Summit’s portfolio is consistently running mid to high 80% occupancy on Tuesdays and Wednesdays, reflecting strength in its urban and suburban portfolio, which comprises about 80% of the company’s holdings.

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Transcript (1 segments)

Jonathan Stanner0:00

For the lodging sector looking into 2025, we expect it to be kind of a more of the same environment, which has been a low single-digit type of RevPAR growth environment. We think the conditions exist for it to be a little bit better than that. Leisure comparisons should broadly ease for the industry year-over-year, and we think there'll be good growth in group business and business transient business. Our portfolio is particularly well positioned for that. About 50% of our assets are in urban markets and another 25% are in suburban markets, so that's 75% of our portfolio that is really well positioned to take advantage of the continuation of those trends. We also have outsized exposure, about 20% of our portfolio, in markets that have been slower to recover, that we've seen significantly outsized growth in 2024, and we do expect that to continue into next year.