Welcome to the Summit Hotel Properties 2024 second quarter earnings conference call. I will now be passing the line to Adam Wudel, Senior Vice President of Finance, Capital Markets, and Treasurer. Thank you, Daniel, and good morning. I am joined today by Summit Hotel Properties President and Chief Executive Officer, Jonathan Stanner, and Executive Vice President and Chief Financial Officer, Trey Conkling. 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 SEC filings. Forward-looking statements that we make today are effective only as of today, 30th July, 2024, 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 President and Chief Executive Officer, Jonathan Stanner. Thanks, Adam, and thank you all for joining us today for our second quarter 2024 earnings conference call. We were once again extremely pleased with our second quarter operating performance and financial results, as adjusted EBITDARE increased 6% to nearly $56 million, which represented a new quarterly record high for the company. Adjusted FFO increased 10% compared to the second quarter of last year, which was our second consecutive quarter of double-digit growth in AFFO. Pro forma RevPAR increased 3.4% year-over-year, as our portfolio continued to consistently outperform the total U.S. lodging industry and upscale chain scale. The second quarter marked the 13th consecutive quarter that our pro forma portfolio has exceeded the total U.S. average RevPAR growth. Our asset management team and operating partners also continued to do a terrific job managing expenses during the quarter, resulting in hotel EBITDA growth of 6% on a flow-through of more than 70%, which drove hotel EBITDA margin expansion of 100 basis points compared to the second quarter of last year. Fundamentals continued to improve across the company's portfolio in the second quarter, particularly in April and May, which had RevPAR growth of 4.5% and 6.5%, respectively. RevPAR growth for the quarter was predominantly driven by a 2.4% increase in occupancy, which was concentrated in urban and suburban markets. Our portfolio also continues to benefit from the strong group demand the industry is experiencing, as second quarter group RevPAR increased 7.5% compared to the prior year, and increased nearly 20% in our urban portfolio, specifically. Our groups are often smaller, self-contained events, which have been robust, and we also continue to benefit from overflow of larger citywide demand in the local marketplace. Our RevPAR growth continues to be driven by strong weekday and urban demand, which increased by approximately 4% and 5%, respectively, in the second quarter. Total portfolio RevPAR on Mondays, Tuesdays, and Wednesdays improved throughout the second quarter, increasing by 4% year-over-year, and 8% when isolating those days of the week to the company's urban portfolio, supported by strong group business and the continuing recovery of corporate transient demand. Weekend RevPAR increased 1.3% during the quarter, as we are seeing moderating leisure demand and a return to more typical travel patterns. As we've discussed on previous calls, we believe our portfolio is well-positioned for relative outperformance, given our exposure to several urban markets that have been slower to recover. Five of those markets, in particular, New Orleans, Baltimore, Minneapolis, Louisville, and the Greater San Francisco Bay and Silicon Valley area, represented 17 of our owned hotels in the second quarter that finished 2023, approximately $22 million below 2019 hotel EBITDA levels on RevPAR that was less than 75% recovered. In the second quarter, these 17 hotels produced RevPAR growth of over 6% and hotel EBITDA growth of 22%, highlighted by 23% RevPAR growth in Louisville and 17% RevPAR growth in Minneapolis. The recovery of technology-related business travel in our Silicon Valley hotel is accelerating, which grew RevPAR by nearly 20% and EBITDA by nearly 60% during the quarter. San Francisco remains the one notable and well-publicized pocket of weakness among our recovering markets, as RevPAR declined year over year for the quarter. Excluding our three San Francisco assets, RevPAR increased 11% in the remaining 14 hotels, and EBITDA increased nearly 40% year over year in the second quarter. Year to date, this portfolio has grown RevPAR by 8% and EBITDA by over 30% as we continue to close the gap relative to pre-pandemic performance. We expect these five lagging markets to continue to drive outsized RevPAR and EBITDA growth for our portfolio for the remainder of the year. While our lagging markets have been the primary drivers of our year-to-date RevPAR growth, we've experienced broad-based demand growth in our urban portfolio, highlighted by Indianapolis, Cleveland, and Charlotte, which all experienced double-digit RevPAR growth during the second quarter. From a capital allocation standpoint, we continue to improve the overall quality of our portfolio and health of our balance sheet during the quarter. Since 2023, we've sold nine hotels for a combined $131 million, including the three hotels sold during the quarter, at a blended capitalization rate of approximately 5%... inclusive of $44 million of foregone capital needs, based on the estimated trailing twelve-month net operating income at the time of each sale. The combined RevPAR of these hotels was approximately $87, which is nearly a 30% discount to the pro forma portfolio. Our disposition efforts have facilitated nearly a full turn reduction in our net debt to EBITDA ratio, enhanced the quality and growth profile of our portfolio, and significantly reduced near-term CapEx requirements. In our earnings press release yesterday, we provided updated guidance ranges that reflect actual first and second quarter results and our revised outlook for the remainder of the year. We reduced our full-year RevPAR growth range to 1%-2.5%, which was predominantly driven by softer demand and a tempered outlook over peak summer leisure travel months. June was a particularly uneven month, as strength in the first half of the month was offset by a slow travel week around the Juneteenth holiday, which resulted in a RevPAR decline of 1% for the month. July has followed a similar pattern, as RevPAR in the first half of the month declined 2%, driven by a slow post Fourth of July holiday week, before rebounding in the back half of the month. We expect full month July RevPAR to be modestly positive year-over-year. Leisure demand broadly across our industry has continued to normalize this summer, particularly in certain resort markets that experienced tremendous rate growth in 2021 and 2022 coming out of the pandemic, which is offsetting some of the growth we are experiencing in urban and suburban markets, which represent approximately 75% of Summit's portfolio. Last summer's trends towards greater international travel and cruises have largely continued into this year, creating some additional headwinds to domestic leisure travel. All our top-line assumptions have moderated for the second half of the year. We made only a minor adjustment to our Adjusted EBITDARE range, which highlights the strength of our efficient operating model and our ability to drive hotel EBITDA growth and margin expansion, despite lower revenue growth expectations. We modestly lowered the top end of our Adjusted EBITDARE range, which reduced the midpoint of the range by just 1%. It's worth noting that the midpoint of our initial full-year Adjusted EBITDARE guidance range has remained relatively constant, despite the sale of three hotels for $84 million in the second quarter. Importantly, we are maintaining the midpoint of our AFFO and AFFO per share ranges, which further highlights these accretive dispositions and our commitment to deleveraging the balance sheet, as well as our ability to effectively recycle capital. With that, I'll turn the call over to our CFO, Trey Conkling. Thanks, John, and good morning, everyone. Our strong second quarter 2024 performance represented a continuation of recent operating trends, as growth within our portfolio was once again driven by the company's urban and suburban hotels, which generated RevPAR increases of 5.4% and 5.8%, respectively, both of which exceeded the national averages compared to their respective location types. Together, these two location types comprise approximately 75% of our pro forma portfolio. Strength in our urban portfolio was driven by continued outsized growth in notable Sun Belt markets, such as Dallas and Charlotte, but even more so by markets outside of the Sun Belt, such as Indianapolis, Cleveland, Louisville, Minneapolis, and Baltimore, all of which posted double-digit RevPAR growth and benefited from numerous special events and more favorable seasonal travel demand patterns. In particular, our urban hotels benefited from robust group demand, for which RevPAR increased approximately 18% versus the second quarter of 2023, despite a difficult year-over-year comparison, as eight cities within our portfolio hosted Taylor Swift concerts in the second quarter of last year. Fundamentals within our suburban portfolio remained strong, as both corporate negotiated and group RevPAR increased 6% compared to prior year. This was led by our four hotels in Denver, three of which were recently renovated and had a combined RevPAR increase of 24% for the second quarter. RevPAR for our resort and small town metro assets declined modestly year-over-year, primarily due to the transformative ongoing renovation at assets such as the Hotel Indigo, Asheville and Courtyard, Fort Lauderdale Beach. RevPAR for these segments remains meaningfully above 2019 levels. Growth in non-rooms revenue increased over 5.5% for the quarter. This trend continues to be driven by the identification of paid parking opportunities, the implementation of resort fees, and other ancillary revenue capture, given increased occupancy during the quarter. Moderating expense growth was a key driver of strong second quarter results and represents the fourth consecutive quarter that expenses have exhibited a more normalized cadence representative of a stabilized cost structure. For the quarter, operating expenses increased by a modest 2.8% and increased only 0.4% on a per occupied room basis for the pro forma portfolio. Productivity improved across the portfolio, resulting from a concerted focus on retention initiatives and less reliance on contract labor. The success of our retention initiatives is evident, as our average FTE count has increased to 29 FTEs per hotel, which remains 15% below pre-pandemic levels, but represents an incrementally more cost-efficient labor structure. During the quarter, turnover declined by 15% compared to the same period last year, and contract labor declined by 10% on a per occupied room basis, approaching levels in line with the onset of the pandemic. Year-to-date, operating expenses have increased 2.6% on an absolute basis and have declined to 0.3% on a per occupied room basis. The NewcrestImage portfolio continued to meet expectations in the second quarter, generating RevPAR growth of 3.3%, which resulted in a 111% RevPAR index and an impressive 7% in hotel EBITDA growth on revenue that was primarily occupancy driven. Operating expenses increased a modest 1% on an absolute basis and declined by over 1% on a per occupied room basis. The portfolio's ongoing market share gains and thoughtful expense management continue to validate our team's ability to identify value-enhancing cluster opportunities and unique revenue management strategies, as well as an ability to leverage an already flexible operating model that drives strong bottom line results. Pro forma hotel EBITDA for the second quarter was $73.1 million, a 7% increase from the second quarter of last year, driven by over 70% flow-through that resulted in 120 basis points of margin expansion, despite RevPAR growth that was primarily occupancy driven. Combined, labor efficiencies, alongside other rooms and food and beverage expense management initiatives, resulted in gross operating profit margin expanding over 40 basis points during the quarter. Further expense reductions in property taxes and management fee expense drove the majority of the remaining margin expansion. Notably, hotel EBITDA increased in both the company's wholly owned and GIC joint venture portfolios. Adjusted EBITDA for the quarter was $55.9 million, a 6% increase compared to the second quarter of 2023. Adjusted FFO was $36.4 million, or$ 0.29 per share, a 10% increase versus the same time period last year. From a capital expenditure standpoint, in the second quarter, we invested approximately $21 million in our portfolio on a consolidated basis and approximately $18 million on a pro rata basis. Year to date, we have invested $39 million on a consolidated basis and $33 million on a pro rata basis. CapEx spend for the second quarter was primarily driven by comprehensive renovations at our Hilton Garden Inn, Milpitas, Residence Inn, Hillsboro, Embassy Suites, Tucson, Courtyard, New Haven, Hotel Indigo, Asheville, and our Courtyard, Grapevine. Since the beginning of 2022, we have invested over $200 million into our portfolio, which has an average effective age of five years and ensures the quality of our portfolio positions the company to drive profitability and market share in the future. Additionally, during the second quarter, we commenced a significant renovation and repositioning of our Courtyard Fort Lauderdale Beach Hotel. To complement its irreplaceable oceanfront location in a high barrier to entry market, the project scope will include a customized guest room and corridor renovation, reconfiguration and modernization of the public spaces, and a high ROI reimaging of the pool deck and restaurant space to offer a unique outdoor experience. The project is expected to be completed by first quarter 2025. The balance sheet continues to be well-positioned, with total liquidity of over $325 million, an average length to maturity of over three years, an average interest rate of approximately 4.7%, that is nearly 80% hedged, and a leverage ratio that is nearly a full turn lower than it was a year ago. Throughout the second quarter, we completed various financing activities that further improved the balance sheet, including reducing overall pro rata indebtedness by over $100 million, utilizing proceeds from asset sales and cash on hand, inclusive of the repayment of our last remaining debt maturity for 2024. During the quarter, we also repaid a property-level mortgage loan for $39 million prior to its scheduled maturity date, which represented an 8% discount on the $42 million outstanding loan balance and an accretive outcome for the company. Two of the three assets to collateralize the loan were added to our corporate credit facility borrowing base, providing increased strategic flexibility and future borrowing capacity. As a result of our interest rate management efforts, our interest rate exposure continues to be effectively managed with a swap portfolio that has an average SOFR rate of less than 3% and a net asset position of approximately $20 million, and approximately 76% of our pro rata share of debt is fixed after consideration of interest rate swap, swaps. When accounting for the company's Series E, F, and Z preferred equity within our capital structure, we are approximately 80% fixed. With no significant maturities until 2026, a staggered maturity schedule, and a strong liquidity profile, we believe the company is well-positioned to achieve its growth objectives. On July 25th, our board of directors declared a quarterly common dividend of $0.08 per share, which, as a reminder, was increased 33% last quarter and represents a dividend yield of approximately 5.2% based on the annualized dividend of $0.32 per share. The current dividend rate continues to represent a modest AFFO payout ratio of approximately 35% at the midpoint of our guidance, leaving ample room for potential increases over time, assuming no material changes to the current operating environment. The company continues to prioritize striking an appropriate balance between returning capital to shareholders, investing in our portfolio, reducing corporate leverage, and maintaining liquidity for future growth opportunities. As John previously discussed, included in our press release last evening, we revised our full year guidance for 2024 operational metrics, as well as certain non-operational items. This outlook is based on management's current view and does not account for any unexpected changes to the current operating environment, nor does it include any future transaction or capital markets activity. Based on the company's year-to-date operating results, as well as our future outlook, we are providing an updated RevPAR growth range of 1%-2.5% for the year. Although we have tempered our outlook for RevPAR growth in 2024, we have made a very modest revision to our adjusted EBITDA midpoint, and we are maintaining our adjusted FFO midpoint. Our revised adjusted EBITDA range of $188 million-$196 million represents a 1% decline at the midpoint and reflects a more stabilized cost structure and the continued success of asset management initiatives. Importantly, we are maintaining our adjusted FFO midpoint at $0.95 per share and narrowing the range to $0.91 per share-$0.99 per share, as the company continues to benefit from recent accretive dispositions and continued deleveraging. At the midpoint of our RevPAR guidance range, we would expect hotel EBITDA margins to contract approximately 25 basis points year-over-year, which implies contraction in the second half of 2024 of 100-150 basis points, primarily related to difficult year-over-year property tax comparisons, given the significant appeal success realized in the second half of 2023. Our revised full year outlook for hotel EBITDA margin contraction of 25 basis points represents a meaningful improvement compared to our initial full year guidance in February 2024, which estimated hotel EBITDA margin contraction of approximately 75 basis points. We expect pro rata interest expense, excluding the amortization of deferred financing costs, to be approximately $55 million. Series E and Series F preferred dividends to be $15.9 million. Series Z preferred distributions to be $2.6 million, and pro rata capital expenditures to range from $65 million-$85 million. As previously mentioned, given the increased size of the GIC joint venture, the fee income payable to Summit now covers nearly 15% of annual cash corporate G&A expense, excluding any promote distributions Summit may earn during the year. With that, we'll open the call to your questions. To ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from Dany Asad with Bank of America. Your line is open. Hi, good morning, everybody. John, in your prepared remarks, you called out normalization over the peak summer leisure travel months as the primary driver of the RevPAR reduction. So if we just think about, you know, days of week or markets, can we just elaborate on where and when we would expect to see this normalization in Q3? Yeah. You know, I think we're mostly seeing it around the weekends, and we're mostly seeing it in our more leisure-oriented markets. You know, as we kind of said on the prepared remarks, urban markets continue to perform very well. Our lagging markets in particular have continued to perform very well. It has been softness in these markets that have frankly performed, you know, significantly above where they performed in the pre-pandemic environment. We have less of that pure resort type of exposure, and 75% of our portfolio is in urban and suburban markets, so I think we're a little more insulated that. Nonetheless, we have seen some pressure on pricing in these peak summer travel months, June and July, specifically. If I break it down a little bit by quarter, I'd say, of the 125 basis point reduction in RevPAR growth at the midpoint, 25 - 50 basis points of it is in the second quarter, specifically related to June. The balance of it is in the third quarter, sorry, in the back half of the year. Got it. Okay. Thank you very much. Thanks, Dan. Thank you. One moment for our next question. Our next question comes from Michael Bellisario with Baird. Your line is open. Thanks. Good morning, everyone. Good morning. John, first question for you, maybe just kind of bigger picture on growth and how you're thinking about the near-term outlook. Are we just operating broadly in the hotel industry, sort of 1%-2% top line? Is expense growth at 3%, is that the right run rate in that scenario? And then kind of how do you guys think about same-store profitability in that growth backdrop? ... Yeah, good morning, Mike. Thanks for the question. I think it would be, I'd use caution in drawing conclusions just from the month of June and July. We've obviously seen some softness, as I elaborated on. A lot of that softness is concentrated around these holiday weeks. If I look at our performance in June, we were down 1% for the month. If I backed out the week of Juneteenth, we were actually up 3% for the month, and I could tell a similar story in the month of July. I think you're seeing—I think what has changed post-pandemic is we've continued to see real softness in and around holiday weeks and following holiday weeks, that's really affected business travel in a way that it hasn't necessarily in the past. You know, April and May were up 5.5% on a combined basis, and I do think we remain optimistic that as we get through the peak summer travel season and back into the fall, when we see more group and BT demand, you will see some re-acceleration in top-line growth. And I'll let Trey expand a little bit on what we're seeing on the expense side. But I do think that while our top-line growth expectations have moderated, our expectations on the expense side have changed pretty meaningfully as well. The team has done a terrific job managing expenses. The opportunity set that we identified early in the year around reductions in contract labor and reductions in turnover have taken hold, and I think that's why you've seen us be able to expand, you know, our EBITDA margins by 90 basis points in the first half of the year. Yeah, Mike, just to add to that, I think when we gave initial guidance at the beginning of the year, we talked about operating expenses, you know, increasing 4%-5% for the year. I would say today that's probably 150-200 basis points lower. So when you kind of reference that 3% number, that feels in the right ballpark. That's obviously driven a lot by these labor efficiencies that John referred to, the improvement in productivity. The contract labor, you know, wage growth through the first six months of the year is up about 2%. So we're seeing a real benefit from that perspective. I think, you know, some of the property tax stuff that we've talked about is certainly a benefit to this quarter. It's a headwind in the fourth quarter. And so, when you kind of look at the full year, we said, you know, margin contraction of about 25 basis points for the full year. I would say GOP is probably a little bit better than that, based on the fact that, you know, a lot of these labor efficiencies and this reduced operating expense growth has moderated versus where we thought we would start the year. Yeah, Mike, maybe just one more point on the same theme here. Again, when we gave full year guidance, you know, we kind of said our expectation relative to historical levels was that we needed, you know, more than 3%, maybe 3.5%-4% RevPAR growth to kind of break even from a margin perspective. You know, as Trey just said, we obviously expect that to be much lower today. The midpoint of our revised RevPAR range is 1.75%. We're plus or minus break even at GOP levels, at that level. So we've obviously seen a reset lower in expenses and the ability to generate GOP and EBITDA growth on much lower RevPAR growth rates than we thought at the beginning of the year. That's helpful context. Then just sort of a follow-up there for Trey, just on the second half outlook, can you maybe walk through some of the puts and takes between three Q and four Q for both RevPAR and margins? I know you mentioned the property tax impact will be four Q- Yeah. but anything else top line and on the expense side of the 22 quarters? No, I think when we look at the second half from a margin perspective, if you think about last year, our cost per occupied room in the first half of 2023 was up, you know, 8.5%. And then the second half of the year, it was up, you know, 1.5%. So we saw we're kind of in the fourth consecutive quarter of seeing this kind of really improved expense dynamic. And I think when we look at the second half, it's a little bit more of a difficult comp, related to GOP. And so I think when we guide to that 150, probably 50 basis points of that, you know, that down 150 in the second half is coming from GOP, and then the remainder of it is below GOP. It's property taxes, and it's related to a one-time insurance rebate from that perspective. So, you know, on the whole, I think if you look at the year, as we said, it looks a lot more improved than where we started the year. That's all for me. Thank you. Thanks, bye. Thank you. Our next question comes from Chris Woronka with Deutsche Bank. Your line is open. Hey, good morning, guys. Thanks for all the details so far. So I guess it. My question kind of is related to kind of back half RevPAR expectations. Have you guys seen any changes in booking behavior between, I would guess I would parse it, between leisure and BT? Are the windows shrinking? Are you seeing more cancellations, or is... And if you can maybe remind us if you have kind of a high-level view of, you know, average lead times for, you know, say, more of the BT stuff in Q4 versus the more leisure-oriented stuff in Q3. Thanks. Yeah. Good morning, Chris, and thanks for the question. It's John. You know, look, our expectations for the back half of the year, kind of the implied RevPAR outlook for the back half of the year is, call it, flat at the low end, and up about 2.5% at the high end of our range. You know, a midpoint between 1% and 1.5% at the midpoint of our full year range. What I would say is we've just seen more volatility in booking pace than we have historically. You know, our August pace is up 4%. We remain encouraged by that, but it has been more volatile than I think we would have otherwise seen. And again, I think it's a reflection of being, you know, still in more of a leisure travel period. Our pace for September is as we sit here today. The booking window remains incredibly short. I don't think we've seen significant changes to that. We certainly haven't seen it lengthened at all. As I said earlier, I do think we remain optimistic that as we get out of the leisure season and into the fall, where we see more BT and more group, that has been more predictable business. We have had better pricing power. We felt less pricing pressure in that business, and hopeful that that translates into better rate growth than we saw in the first half of the year and the second. Okay. Thanks, John. And then, you know, next question is kind of, and it may be a little too early to tell, but as we think about some of these newer brands that are, you know, starting to pop up more in some of your markets, whether it's a Tru or a Spark, and I don't think you're gonna necessarily be owning any of those hotels. But, is there any, you know, evidence or concern that they, that they, you know, that they drop down into the rates and impact your Hampton or Hilton Garden or even some of the other non-Hilton stuff? Do you have any early sense on that yet? Yeah, you know, I do think it's a little bit too early to tell. You know, what I would say, you know, particularly related to, you know, the, the Spark or these kind of economy conversion brands that have been rolled out is, I, you know, I think the math pencils out much better in, in tertiary and secondary markets. And, you know, the majority of our portfolio and exposures in urban markets, where I think this is more difficult to, to roll out. I think broadly speaking, it goes after a different customer. Now, it is, it is more supply in those brand families from an exposure perspective, so we'll have to see. But, I do think again, I think we're still gonna be in an environment for several years where we have below average and probably significantly below average supply growth in the industry, you know, sub 1% supply growth for several years. So, I do think we have a good outlook from a supply perspective going forward. Yeah, that's good to hear. If I can sneak one more in. When you talk about kind of the, you know, getting some of the contract labor out and switching over to more FTEs, are these contract people becoming FTEs, or is it a different group of people, and do you know where they're coming from? Are they, you know, in the industry and they're walking across the street, or is it new entrants? Do you have a sense of that? Yeah, I... Look, I think that sometimes you're converting contract labor. I don't think that's the norm. I think what you're seeing is just a broad general easing of the labor market, more broadly. You know, whether we're stealing it from other industries or you have, you know, savings that have run out from stimulus over the pandemic and people need to get back to work. I think any macro indication that you look at suggests that the labor market is easing, and that's translating to less contract labor and lower turnover in our business. Okay, very good. Thanks. Thanks, John. Thanks, Chris. Thank you. I'm showing no further questions at this time. I would now like to turn it back to Jonathan Stanner for closing remarks. Well, thank you all for joining us today. We look forward to seeing many, many of you at the fall, the conference circuit. I hope you have a great end to your summer. Thank you very much. This concludes today's conference call. Thank you for participating. You may now disconnect.