Summit Hotel Properties, Inc. (NYSE:INN.PRC) Q1 2016 Earnings Conference Call - Preliminary Transcript
May 04, 2016 • 09:00 am ET
Good morning, ladies and gentlemen and welcome to the Summit Hotel Properties Incorporated Q1 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, the conference call is being recorded.
I would now like to turn the conference over to your host Mr. Adam Wudel, Vice President of Finance.
Thank you, Emily, and good morning. I'm joined today by Summit Hotel Properties President and Chief Executive Officer, Dan Hansen; and Executive Vice President and Chief Financial Officer, Greg Dowell. 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 2015 Form 10-K and other SEC filings.
Forward-looking statements that we make today are effective only as of today May 4, 2016, 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 in www.shpreit.com. Please welcome Summit Hotel Properties' President and Chief Executive Officer, Dan Hansen.
Thanks, Adam. And thank you all for joining us today for our first quarter 2016 earnings conference call. We are extremely pleased with the results that our diverse portfolio of premium select-service hotels delivered in the first quarter of 2016. For the quarter, we reported adjusted FFO of $28.3 million, which is 21.7% increase over the first quarter, 2015. Our AFFO per share increased 21.2% from the first quarter 2015 to $0.32 per share. On a pro forma basis we posted RevPAR growth of 3.8% in the first quarter, which was near the midpoint of our outlook and as a reminder was on top of 11.9% growth in the first quarter of 2015.
Our RevPAR growth was driven by 2.3% increase in occupancy to 77.6% and an average daily rate increase of 1.5% to $141. Both of which were partially offset by a total of 39 basis points due to renovation displacement. Our same store RevPAR growth for the quarter was 4.5% compared to the first quarter, 2015. RevPAR was driven by combination of increases in occupancy, which was up 3.3% and a 1.2% increase in average daily rate. The strength and quality of our portfolio continues to be evident as we again surpassed the Smith Travel Research overall US and upscale RevPAR growth rate by large margins.
Our RevPAR growth was driven 60% by occupancy as compared to the Smith Travel Research upscale average, which was flat. The primary factors behind our occupancy growth was the Super Bowl in San Francisco and the continued ramp from hotels under renovation in the first quarter of 2015. Looking ahead, we still expect the majority of our full year 2016 RevPAR growth to be rate driven. The strength in our first quarter RevPAR growth was again very broad-based,