Summit Hotel Properties, Inc. (NYSE:INN.PRC) Q4 2016 Earnings Conference Call - Final Transcript
Feb 24, 2017 • 09:00 am ET
Good day, ladies and gentlemen, and welcome to the Summit Hotel Properties' Q4 2016 Earnings Call. [Operator Instructions]
I would now like to turn the conference over to Adam Wudel, Vice President of Finance. Please go ahead.
Thank you, and good morning. I'm joined today by Summit Hotel Properties Chairman, 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 2016 Form 10-K and other SEC filings. Forward-looking statements that we make today are effective only as of today, February 24, 2017, 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.
Daniel P. Hansen
Thanks, Adam. And thank you all for joining us today for our fourth quarter and full-year 2016 earnings conference call. We are very pleased with the strong top and bottom line results that our portfolio delivered in 2016 and take great pride in the progress of our capital recycling initiative. For the full-year 2016, we reported adjusted FFO of $123.8 million, which is a 14% increase, and our AFFO per share increased 13.1% to $1.41 per share over the prior year.
On a pro forma basis, we posted RevPAR growth of 3.8% for the year, which was at the midpoint of our outlook and as reminder, was on top of 7.3% growth in 2015. Our pro forma RevPAR growth for 2016 was 4.6% when excluding the eight hotels currently under contract for sale with ARC Hospitality and after adjusting for $2.1 million of renovation displacement across our portfolio. For the fourth quarter 2016, we reported AFFO of $26.7 million, 12.8% above the fourth quarter of 2015. Our AFFO of $0.30 per share represents a 10.5% growth compared to the same period in 2015.
On a pro forma basis, we reported RevPAR growth of 1% for the quarter. Our same-store RevPAR growth for the quarter was 0.3% compared to the fourth quarter of 2015. 2016 capped off five consecutive years of Summit, exceeding the Smith Travel Research Upscale RevPAR growth rate, and we've done so by an average of nearly 200 basis points. The strength in RevPAR across our portfolio continues to be broad-based, I'd like to take a moment to touch on a couple of our largest outperformance.
One of our strongest markets in 2016 was the Portland MSA where we own two hotels that contribute approximately 3.5% to our total portfolio EBITDA. Combined, these two hotels posted 13.2% RevPAR growth in 2016 as they benefited from recent renovations and the continuation of a favorable supply and demand dynamic. Next, our four Nashville hotels continue to be portfolio leaders