Summit Hotel Properties Reduces Loan Costs

The hospitality REIT streamlines interest terms across four credit agreements, aiming to enhance liquidity and lower financing costs.

December 19, 2025

Loan Cost Reductions Across Four Key Facilities

Summit Hotel Properties took clear action on December 17, 2025 to reduce borrowing costs across several key loan facilities. Four credit agreements were amended—each removing a 0.10% credit spread adjustment that had been applied to the term SOFR benchmark. That change translates to a lower cost of capital across the board.

The adjustments cover a wide range of Summit’s financing activity. One amendment applies to the Delayed Draw Term Loan originally signed in March 2025. Another affects the credit agreement tied to Summit’s joint venture with GIC, first established in September 2023. A third amends the February 2024 term loan managed by Regions Bank. And the last applies to the broader credit facility dated June 2023.

Each of these facilities is now operating on more favorable terms. Bank of America served as administrative agent for three of the four amendments, with Regions leading the other. Across all four, the borrower is a Summit affiliate, with Summit Hotel Properties, Inc. standing in as the parent guarantor.

Simplified Terms for Greater Flexibility

These changes aren’t just technical—they impact day-to-day financial flexibility. By removing the SOFR spread adjustment, Summit is creating room to manage liquidity more efficiently and navigate market dynamics with greater control. In a rate environment where every basis point counts, that kind of shift matters.

The company now moves forward with a cleaner interest rate structure on its credit lines. That supports broader efforts to manage risk, fund growth, and stay responsive to changes in the hospitality landscape.