Summit Hotel Properties : Investor Presentation - January 2022

Residence Inn - Portland Downtown		Residence Inn - Boston Watertown		Courtyard - Pittsburgh Downtown		Residence Inn ꟷ Steamboat Springs
Marriott		Marriott		Marriott		Marriott

ACQUISITION AND

OPERATING UPDATE

J A N U A R Y

2 0 2 2

AC Hotel ꟷ Frisco		Embassy Suites - Amarillo		Canopy by Hilton ꟷ Frisco		AC Hotel ꟷ Houston
Marriott		Hilton		Hilton		Marriott

Forward Looking Statements

We make forward-looking statements in this presentation that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans, and objectives. When we use the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may," or similar expressions, we intend to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking by their nature:

• our ability to increase our dividend per share of common stock;
• the state of the U.S. economy generally or in specific geographic regions in which we operate, and the effect of general economic conditions on the lodging industry and our business in particular;
• market trends in our industry, interest rates, real estate values and the capital markets;
• our business and investment strategy and, particularly, our ability to identify and complete hotel acquisitions and dispositions;
• our projected operating results;
• actions and initiatives of the U.S. government and changes to U.S. government policies and the execution and impact of such actions, initiatives and policies;
• our ability to manage our relationships with our management companies and franchisors;
• our ability to maintain our existing and future financing arrangements;
• changes in the value of our properties;
• the impact of and changes in governmental regulations, tax law and rates, accounting guidance and similar matters;
• our ability to satisfy the requirements for qualification as a REIT under the U.S. Tax Code;
• our ability to repay or refinance our indebtedness as it matures or becomes callable by lenders;
• the availability of qualified personnel;
• our ability to make distributions to our stockholders in the future;
• the general volatility of the market price of our securities; and
• the degree and nature of our competition.

Forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account information currently available to us. You should not place undue reliance on these forward-looking statements. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us. These factors are discussed under "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2020, and in other documents we have filed with the Securities and Exchange Commission. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements. Any forward-looking statement is effective only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Except as required by law we are not obligated to, and do not intend to, publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Additionally, this presentation contains certain unaudited historical and pro forma information and metrics which are based or calculated from historical data that is maintained or produced by Summit or third parties. This presentation contain statistics and other data that may have been obtained from, or compiled from, information made available by third-parties.

AC Hotel / Residence Inn Frisco Station

SpringHill Suites / TownePlace Suites NOLA		AC Hotel Houston		Canopy by Hilton Frisco		Holiday Inn Express Grapevine
Marriott		Marriott		Hilton		IHG

AC Hotel Dallas Downtown		AC Hotel Frisco
Marriott		Marriott

Hyatt Place OKC Bricktown		Embassy Suites Amarillo		Residence Inn Dallas		AC Hotel OKC Bricktown
Hyatt		Hilton		Marriott		Marriott

Transaction Overview

Transaction Overview

• Summit and GIC to acquire 27-hotel portfolio consisting of 3,709 keys and two parking structures through an existing joint venture (1)
• 100% of the properties are located in high-growth Sun Belt markets
• Purchase price represents a 10.5x to 11.0x stabilized Hotel EBITDA multiple and 8.0% to 8.5% stabilized hotel cap rate after underwritten capital expenditures
• Transaction is expected to be immediately accretive to Adjusted FFO and leverage-neutral

Capital Structure

• Summit / GIC joint venture (1) to acquire a portfolio of assets from NewcrestImage ("NCI" or the "Portfolio") for total consideration of $822 million
• • Hotels (27): $777 million ($209k / key)
  • Parking Structures (2): $25 million
  • Incentives: $21 million
• Summit funds $160 million in common OP units
• • Represents 15.865 million shares at Summit's 10-day VWAP of $10.0853 per share
• Summit funds $50 million in preferred OP units
• • Attractive coupon pricing of 5.25%
• GIC funds $208 million in cash
• Committed credit facility of $410 million from Bank of America and Wells Fargo as primary financing

Board Composition and Management

• NCI will appoint one representative to Summit's Board of Directors upon closing
• NCI ownership in Summit Hotel Properties post transaction is ~13% of all common stock / units

		AC Hotel Oklahoma City Bricktown
Timing

• Expected closing in late Q4 2021 / early Q1 2022

1 (1) Summit and GIC have a 51% and 49% economic interest in the joint venture, respectively.

Strategic Rationale for Acquisition

Newer Vintage Hotels with Significant Growth Potential and Minimal Near Term CapEx Needs

AC Hotel Frisco Station

• Average effective age of portfolio is ~3.8 years
• 66% of guestrooms and 73% of hotel value developed since 2015
• Limited expected capital investment of ~$20 million over next 3 years reflects quality of assets (less than $2k per key per year)
• Outsized organic growth given ramp in recently developed hotels positions Summit for enhanced cash flow profile
• RevPAR index of 111 for 9 months ended September 30, 2021

	ꟷ	Further expands Summit's broad exposure to U.S. recovery
NCI Portfolio Meaningfully
Increases Summit's	ꟷ Pro forma, Sun Belt and Top 50 U.S. Markets represent 60% and 87% of Summit's total rooms
	ꟷ The population of the U.S. Sun Belt grew 11% vs. 4% for the balance of the U.S. (non-Sun Belt) over the past decade (2010 to 2020)
Presence in High-Growth	ꟷ	Pro forma, RevPAR growth for Summit's top 10 markets and overall portfolio is expected to exceed the industry average by 550bps and
Sun Belt Markets		400bps through 2025 (1)
	ꟷ Operational upside opportunities driven by Summit's sophisticated revenue management and asset management expertise
Operational Enhancement
ꟷ	Anticipated revenue and expense synergies through integration into Aimbridge management network
Opportunities	ꟷ	Further increases JV asset management fees, which on a pro forma basis, are expected to cover ~17% of Summit's current cash corporate G&A
	ꟷ	Stabilized yield of 8.0% to 8.5% after underwritten capital expenditures on 27 hotels
Attractive Basis Drives
Shareholder Value	ꟷ Hotel acquisition cost of $209k per key represents a significant discount to replacement cost
ꟷ	Expected to be immediately accretive to Adjusted FFO / share
	ꟷ	Increases Summit room count by ~32% to over 15,000 keys across 100 hotels
Increases Scale and Improves
Operating Efficiency	ꟷ Increases Summit's market cap and enterprise value by approximately 15% and 20%, respectively, based on a stock price as of November 2, 2021
ꟷ	Further leverages Summit platform to drive efficiency with minimal incremental G&A
	ꟷ Leverage-neutral transaction
Strengthens Balance Sheet	ꟷ Partial Summit consideration in form of Common OP units expands equity market cap without impacting liquidity
	ꟷ Pro forma corporate liquidity of $439 million provides Summit with meaningful operational and additional growth flexibility
and Preserves Liquidity	ꟷ	Partial Summit consideration in form of Preferred OP units at attractive pricing of 5.25%
	ꟷ	Extends weighted average maturity duration with new 5-year, acquisition credit facility

2 (1) CBRE Hotel Horizons RevPAR growth data Q2 2021 Edition as of September 2021.