SEGMENT INFORMATION

We have investments in lodging properties located in 25 states across the United States of America. Our lodging properties derive revenue primarily from guestroom sales, food and beverage sales, and revenues from other lodging services and amenities. Our President and Chief Executive Officer, who serves as our CODM, evaluates the performance, makes capital allocation decisions, and manages the overall operating and investing strategy of each hotel individually. As such, we consider each lodging property to be an operating segment. Each of our properties has similar economic characteristics and risks, facilities, and services and distribute their products and services in the same manner through third-party management companies. Therefore, all of our lodging properties are aggregated into a single reportable segment. The accounting policies of the lodging property segment are the same as those described in Note 2 - “Basis of Presentation and Significant Accounting Policies” to the Consolidated Financial Statements.

On a regular basis, the segment's performance is assessed, and decisions are made related to the allocation of resources primarily based on lodging property earnings before interest, taxes, depreciation and amortization (“Hotel EBITDA”) by comparing Hotel EBITDA results to budgets and forecasts, prior period results, and industry or peer group benchmarks. Additionally, the CODM considers other performance metrics such as total revenue, revenue per available room (“RevPAR”), average daily rate (“ADR”), occupancy, and hotel gross operating profit to assess operating performance.

Lodging revenues and Hotel EBITDA, including significant lodging expenses for our single reportable operating segment, are as follows (in thousands):


	For the Years Ended December 31,
	2025		2024		2023
Lodging property revenues:
Room	$	643,795	$	650,713	$	656,063
Food and beverage	43,213		40,865		41,513
Other	42,464		40,205		38,551
Total revenues	729,472		731,783		736,127
Lodging property expenses:
Room	151,441		146,790		148,005
Sales and marketing	95,602		93,083		93,053
Administrative and general	58,191		57,678		58,269
Property taxes, insurance and other	54,691		54,116		55,167
Food and beverage	32,933		30,964		31,580
Property operations & maintenance	32,602		30,582		30,416
Utility costs	28,572		26,917		26,989
Management fees	15,760		15,866		18,452
Other lodging property expenses	16,315		16,149		16,174
Total lodging property expenses	486,107		472,145		478,105
Hotel EBITDA	$	243,365	$	259,638	$	258,022

A reconciliation of (Loss) income from continuing operations before income taxes as shown on our Consolidated Statements of Operations to Hotel EBITDA is as follows (in thousands):


	For the Years Ended December 31,
	2025		2024		2023
(Loss) income from continuing operations before income taxes	$	(10,835)	$	30,148	$	(25,318)
Adjusted for:
Depreciation and amortization	149,610		146,436		150,924
Corporate general and administrative	32,816		31,891		32,530
Transaction costs	—		10		13
Loss on impairment and write-down of assets	1,833		6,723		16,661
Recovery of credit losses	—		—		(1,230)
(Gain) loss on disposal of assets, net	(6,579)		(28,912)		337
Interest expense	80,692		82,632		86,798
Interest income	(1,178)		(1,906)		(1,688)
Gain on extinguishment of debt	—		(3,000)		—
Other expense, net	(2,994)		(4,384)		(1,005)
Hotel EBITDA	$	243,365	$	259,638	$	258,022

Our measure of segment assets is total assets as reported on our Consolidated Balance Sheets.

Historical Timeline

Fiscal Year	Filed
2025	Feb 25, 2026	Showing above
2024	Feb 24, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Summit Hotel Properties, Inc. Segments Disclosure

Historical Timeline

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