Summit Hotel Properties (NYSE:INN) stock plummeted 8.36% in the pre-market session on Tuesday, following the release of its fourth-quarter 2024 results and full-year 2025 outlook after the market close on Monday.

The hotel real estate investment trust (REIT) reported adjusted funds from operations (AFFO) per share of $0.20 for Q4 2024, in line with estimates, but down from $0.22 in the prior-year quarter. For the full year 2024, AFFO per share grew 5.6% to $0.96, driven by revenue gains and effective cost management.

However, the company's outlook for 2025 was lackluster, with AFFO per share guidance ranging from $0.90 to $1.00, missing analysts' expectations. The disappointing guidance reflects concerns over slowing economic growth and its potential impact on travel demand.

Summit Hotel Properties attributed its positive 2024 performance to pro forma RevPAR growth that exceeded industry averages, successful capital recycling programs, and effective cost management. However, the company expects a moderate RevPAR growth environment in 2025, ranging from 1.0% to 3.0%, which could weigh on profitability.

Overall, the stock's pre-market plunge reflects investors' concerns over Summit Hotel Properties' outlook for 2025, despite its solid performance in 2024. The company's ability to drive RevPAR growth and maintain cost discipline will be crucial for its financial performance in the coming year.