Summit Hotel Properties Successfully Completes Credit Facility Amendments To Extend Covenant Waiver Period and Enhance Flexibility

Summit Hotel Properties, Inc. (NYSE: INN) (together with its consolidated subsidiaries, the "Company") today announced that it has amended the credit agreements for its $400 million revolving credit facility and three senior term loans totaling approximately $550 million to enhance overall flexibility and extend the financial covenant waiver period through March 31, 2022, unless terminated earlier at the Company's option.

"We appreciate the continued support from our bank group that allowed us to complete the amendments with numerous enhancements, including a waiver of key financial covenants through March 31, 2022.  The favorable terms obtained are a testament to our efficient, high-quality portfolio of hotels and our longstanding track record of being thoughtful and disciplined capital allocators," commented Jonathan P. Stanner, the Company's President and Chief Executive Officer.  "This amendment, along with the other significant actions we have taken since the onset of the pandemic, provides us with ample liquidity and the flexibility to opportunistically pursue a broad range of capital and transaction alternatives," commented Mr. Stanner.

Key terms and enhancements of the amendments include:

Waiver of key financial covenants through March 31, 2022 (with covenant testing to resume June 30, 2022). Certain financial and other covenants are modified or adjusted through December 31, 2023.

Full availability of $400 million revolver, subject to certain conditions, which is an increase of $20 million compared to the previous amendment. The $400 million revolver currently has an outstanding balance of $10 million. Combined with current cash of approximately $25 million, the Company has over $400 million of total liquidity.

Ability to fund up to $150 million of new investments with existing liquidity subject to maintaining total liquidity of at least $150 million. The $150 million acquisition allotment may also be increased for certain future capital events.

Continuation of the Company's ability to make preferred distributions and invest in various capital improvement projects.

Flexibility to use net proceeds from future capital events to repay outstanding balances on the revolving credit facility first and subsequently reduce certain term loan balances to preserve future liquidity.

About Summit Hotel Properties

Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded hotels with efficient operating models primarily in the Upscale segment of the lodging industry.  As of February 8, 2021, the Company's portfolio consisted of 72 hotels, 67 of which were wholly owned, with a total of 11,288 guestrooms located in 23 states.

For additional information, please visit the Company's website, www.shpreit.com and follow the Company on Twitter at @SummitHotel_INN.