The lengthening of the booking window is an encouraging trend we view as a leading indicator of demand durability. Total revenue in our pro forma portfolio increased 5.2% in the second quarter, supported by continued strength in out-of-room spending. Non-rooms revenue increased 4.9% during the quarter, driven primarily by resort and destination fees, parking, and food and beverage revenue growth. As we've discussed on previous calls, our transformational renovation of the Oceanside Fort Lauderdale Resort continues to drive tremendous growth as total revenue for the hotel increased 31% compared to the second quarter of last year, resulting in a nearly 80% increase in hotel EBITDA. Once again, our operating team did a tremendous job controlling expenses and driving strong profitability growth from rate-driven REVPAR growth during the quarter. Total operating expenses increased 4% year-over-year on difficult comparisons to last year. Pro forma hotel EBITDA increased 8% in the second quarter, representing a healthy 54% flow-through on incremental revenue. Total labor costs increased 4.3% year-over-year, reflecting modest wage growth, higher incentive compensation associated with improved hotel-level performance, and increases in hotel employee benefit costs. Contract labor declined another 4% versus the prior year, continuing the favorable trend we have discussed over the last several quarters. Overall, the labor environment remains stable as turnover continues to be well below what we experienced in prior years. For the full year, we forecast hotel operating expenses to increase approximately 3% and expect to be able to continue to drive strong flow through in the second half of the year. We also made meaningful progress strengthening the balance sheet during the quarter. In June, we refinanced our primary corporate credit facility with a new $650 million senior unsecured facility, extending the maturity date of the facility to June of 2031 and lowering our borrowing costs by 20 basis points at our current leverage point. In addition, in May, we amended the mortgage loan encumbering our AC and Element Miami Brickell hotels to reduce the interest rate spread by 30 basis points. When accounting for our SWOT portfolio, approximately 50% of our pro rata share of debt is fixed, and including our three series of preferred stock, we are over 60% fixed on a pro rata basis. The overall health of our balance sheet is strong, as we currently have significant corporate liquidity with nothing outstanding on our revolving credit facility and no debt maturities until 2028. giving us flexibility to pursue a variety of value creation opportunities going forward. We also continue to successfully sell assets and recycle capital. In late July, we closed on the previously announced sale of our wholly owned Courtyard and Residence Inn Dallas Arlington South hotels for a combined sale price of $19 million. We strategically retained ownership of those hotels through the fee-for-demand window before closing the transaction. which allowed us to capture robust event-driven demand in the Arlington submarket prior to disposition. The two hotels achieved combined rev par growth of over 45% and EBITDA growth of nearly 85% in the month of June. The sale price represented a 5.4% capitalization rate based on trailing 12-month net operating income as of May 31st prior to FIFA-related demand. and we eliminated $7.6 million of near-term capital needs at the two hotels. This transaction reflects our ongoing commitment to recycling capital out of lower growth assets and assets with outsized capital needs and redeploying proceeds to strengthen the balance sheet, increase liquidity and enhance the quality of our portfolio. Since 2023, the company has sold 15 hotels for nearly $220 million. at a blended capitalization rate of less than 5% and eliminated nearly $70 million of capital requirements. The combined rev par for the sold hotels was $86, which is an approximate 30% discount to our current pro forma portfolio. The hotel transaction environment is improving, as we have seen a notable recent pickup in activity. During the second quarter, we repurchased approximately 49,000 common shares, at a weighted average price of $4.27 per share. Including our repurchase activity in the first quarter, through June 30th, we repurchased 1.5 million shares for $6.2 million, or a weighted average price of $4.17 per share. And since the inception of the program, we've repurchased 5.1 million shares, which represents over 4% of total shares and units outstanding, for $21.6 million, at an average price of $4.26 per share. On July 28th, 2026, our Board of Directors declared a quarterly common dividend of $0.08 per share, representing an annualized dividend yield of approximately 4.6% based on the August 4th closing stock price. The Board also declared the regular quarterly dividends on our Series E, Series F, and Series Z preferred securities, The current common dividend continues to represent a modest payout ratio relative to trailing 12-month AFFO and reflects our ongoing objective of balancing shareholder returns with reinvestment and balance sheet discipline. Turning to our outlook for the remainder of the year, in our earnings press release yesterday, we increased our full-year guidance ranges for REVPAR growth, adjusted EBITDA RE, adjusted FFO, and FFO per share. For the full year, we now expect pro forma rev par growth of 1.75% to 3.25%, an increase of 75 basis points at the midpoint, adjusted EBITDA RE of $175 million to $182 million, adjusted FFO of $95.5 million to $103 million, and adjusted FFO per share of 79 cents to 85 cents. As a reminder, Our previous RevPAR growth EBITDA and FFO ranges included the ownership of the recently sold Courtyard and Residence Inn Arlington hotels, which were expected to contribute approximately $500,000 in the last five months of 2026. This contribution has been removed, and the revised midpoints of our EBITDA and FFO per share ranges are increasing $3.5 million and 2 cents per share, respectively, after adjusting for these asset sales. Approximately $2 million of our EBITDA guidance increase is the result of stronger-than-expected second quarter results, while the remaining $1.5 million reflects our higher expectations for the second half of the year. Operating trends have continued to improve into the third quarter, as preliminary July REV part growth is expected to finish at approximately 6%. We expect full-year 2026 hotel EBITDA margins to range from down 25 basis points to up 25 basis points, or essentially flat at the midpoint, which includes approximately 25 basis points of headwinds from higher property taxes. We believe the revised ranges appropriately reflect both the better than expected results we achieve in the second quarter and the more favorable outlook we have for the balance of the year, while remaining mindful that the operating environment is dynamic and our long-term visibility remains limited. We expect pro-rata interest expense, excluding the amortization of deferred financing costs, to be $58 million to $62 million, and preferred distributions, including the Series E, Series F, and Series Z securities, to be $18.5 million. There are no additional acquisitions, dispositions, share repurchases, or capital markets activities assumed in the company's full-year outlook beyond those already reflected as of August 5, 2026. From a capital expenditure perspective, our guidance assumes pro-rata capital expenditures range between $55 million to $65 million for the year. Current renovation activity includes projects at our courtyard at Scottsdale, Homewood Suites Tucson, Hyatt Place Mesa, and Hyatt House Orlando Universal. Finally, I'd note that the pro-rata fee income we earn under the GIC joint ventures covers approximately 15% of our annual cash corporate G&A expense prior to factoring in any potential promote distributions that we may earn over the course of the year. In summary, we're incredibly encouraged by our recent operating trends and our second quarter financial results. More importantly, we believe the long-term outlook for the lodging industry is profoundly favorable as new hotel supply growth is expected to remain well below historical averages for several more years, and consumer prioritization of travel and experiences provide the secular tailwind that we expect to persist. The ongoing recovery in business travel is increasingly benefiting our urban-centric portfolio, supported by the breadth and depth of demand we are experiencing across our highest-rated segments. We believe these dynamics support continued top line growth and margin expansion through the balance of 2026 and beyond. With a strengthened balance sheet, high quality portfolio, and accelerating operating momentum, we believe Summit is exceptionally well positioned to deliver strong shareholder returns going forward.

And with that, operator, we'd be happy to open the line for questions.

Thank you. We are now opening the question and answer session. If you'd like to ask a question, please press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, please press star 1 again. Thank you. We'll be taking a moment to let the questions come in. Your first question comes from the line of Austin Werschmidt from KeyBank Capital Markets. Your line is now open. Please go ahead.

Thanks. Good morning, everybody. So, John, you hit on a little bit of the kind of durable demand trends that you're seeing across the business and, you know, some of the segments that outperformed during the quarter. Retail, you mentioned, you know, group was another. I guess what's the opportunity going forward to continue to shift mix and really drive rate and flow through to the bottom line towards the back half of the year?

Yeah, thanks, Marni Gostin. I think you kind of highlighted a lot of the trends that we saw really going back to March of this year, which was a remixing of the business. And this is a reversal of kind of what we dealt with through a lot of 2025 when we were more heavily reliant on some of the discount channels, the OTA channels, and lower-rated transient business. I do think the opportunity is to continue to see more of what we saw in the second quarter. As we alluded to in the prepared remarks, this was much more than just kind of a World Cup-driven event in the quarter. Our strongest segments were our highest-rated segments. I do think we continue to expect very strong demand and pricing power on the corporate side, both from a group and a transient perspective. And as I said, particularly these smaller groups, We've seen really strong pickup from in the quarter, and our expectation is for that to continue. Obviously, the second quarter was all kind of rate-driven REVPAR growth. We do expect our REVPAR growth in the back half of the year to continue to be mostly rate-driven, although maybe a little more balanced than what we saw in the second quarter.

Can you frame up a little bit of the magnitude of that opportunity to get back to more historical norms or maybe where – The trend that you were on prior to kind of last year's disruption and, you know, you mentioned kind of having to rely more heavily on discount channels and lower rated transient.

Yeah, well, I think when we look at it by segment, obviously, BT has lagged in the recovery, really going all the way back to the pandemic. To me, that still feels like where the incremental growth opportunity has been. And I think we've gotten away a lot in the industry from comparing to 2019 levels, but I do think that has been the slowest segment to recover. You're seeing tremendous momentum there. Some of it is All the growth we're seeing in the technology world, a lot of it's driven by the strength and kind of the AI build-out. We are definitely benefiting from that to some degree. The other thing that is benefiting our portfolio that has been driven a little bit by easier year-over-year comps is growth in government. government was down meaningfully really starting kind of March 1st of last year. It trended down 20% to 25% through the year. We were up a little over 8% in the quarter. We do expect that to be kind of another leg of growth for us in the back half of the year.

And then just last one for me, switching gears a little bit, with the transaction market thawing, more opportunities to recycle capital out of some of the less core markets on a maybe larger scale than you have been able to do in recent years, or are you still limited to those smaller deals? That's it for me. Thank you.

Yeah, well, look, I think we alluded to this again in the prepared remarks. We have seen more activity in the transaction market, which has been encouraging, and I think we've always felt like the catalyst for more activity was better operating fundamentals, and clearly we've started to see that. I do think it kind of broadens the aperture in terms of what we can look at. I still feel where we sit today, the most effective transaction for us has been this kind of one or two portfolio, maybe three asset type of portfolio deal where we take a very targeted approach and very often are finding and more local regional buyers. I wouldn't say that that has changed yet, but as you alluded to, the financing markets remain very, very strong and we see more activity in the transaction market. I do think it broadens what we can look at there.

Thanks for the time. Thanks, Austin.

Your next question comes from the line of Michael Belisario from Beard. Your line is now open. Please go ahead.

Hey, Jen. Good morning. Just on the demand front, how are you thinking about sort of just the market and segment rotation, customer segment rotation that occurred in June because of the World Cup? And I understand your performance was broad-based, as you mentioned, but try to understand just how you and your operators are thinking about sort of the underlying demand run rate ex-World Cup.

Yeah, you know, I'd say a couple things. When we look at our second quarter, you know, we attributed about 100 basis points of 5% rev par growth specifically to the World Cup. I think as kind of everyone has been well documented, the World Cup was really a rate-driven event and kind of a last-minute transient rate-driven event. We even saw some modest occupancy declines in a and many more. We think the opportunity is a lot of kind of what we saw really through beginning kind of March 1st through July, which was better performance in retail and our highest rated segments, retail, corporate negotiated rates in particular, and then some on kind of the smaller group opportunity. I think that's where the opportunity lies for the back half of the year, and we would expect those trends to continue. And as I said, you know, in response to Austin's call, We are coming off relatively easy government comps, and that's providing another tailwind from a segmentation perspective. It is replacing some of the lower-rated business. And so if you look at our channel mix, we were actually down year over year in the second quarter in our OTA mix, which was very much an intentional strategy.

That's helpful.

And then just mentioned, I think it was, what, 5% rev par or 6%. for the month. Any specific commentary sort of post-World Cup that you can point to just in sort of the sustainability of the sort of pre-World Cup trends you saw too? And that's all for me. Thank you.

Yeah, as you alluded to, July, our preliminary numbers are up 6%. We think that a portion of that was World Cup demand, but I do think a lot of the trends that we saw in the second quarter have continued into the third quarter, specifically in July. A lot of the strength that we just alluded to for the third quarter, we're currently pacing up roughly mid-single digits. A little bit softer in August, but September much stronger. And so we're very encouraged by the recent trends that we've seen and think a lot of them will persist in the back half of the year.

Got it. Thank you.

Thanks, Mike.

Your next question comes from the line of RJ Milligan from Raymond James. Your line is now open. Please go ahead.

Good morning, guys. John, I was wondering if maybe you could talk about expectations for expenses in the back half of the year and maybe some of the puts and takes as we think about 27.

Yeah, sure. The first thing I would say is I think the team continues to do a very good job controlling expenses. Our expense growth was up Thank you very much. Relative to our expectations coming into the quarter, our expenses actually beat expectations, even though they were 4% year-over-year. And again, some of that has to do with the year-over-year comp. As I said, I expect us to be able to continue to tightly control expenses in the back half of the year. As we look out beyond that, we do feel like things are pretty stable. Labor is obviously our largest expense line. Our labor costs have been trending up about 4% in the first half of the year. A lot of the wage adjustments do get reflected there, and so we think that moderates in the back half of the year. And we feel pretty good about the trajectory that we're on even as we look out into next year. We feel like things are actually pretty stable on the expense front at this point.

Thanks, Sean. That's helpful. And I guess, you know, in the quarter, bought back a much lower stock price. I'm just curious how you're thinking about buybacks here today versus doing equity. How do you feel about your cost of capital?

Yeah, well, look, I think the first thing I would say is it's been a very positive development to see, you know, all the stocks appreciate fairly meaningfully over the last quarters. As you alluded to, we did buy some stock back early in the quarter when we saw a pretty meaningful dislocation. I think What we've seen is just kind of an improved confidence level around the trajectory of our portfolio in particular and kind of the broader industry as large. I don't think that our capital allocation priorities have changed at all. We've obviously been very focused on selling non-core assets at attractive prices, using the proceeds from that to deleverage the balance sheet, reinvest in the portfolio, and buy back stock when we've seen kind of these kind of obvious enormous dislocations in the stock price like we saw in the first part of the second quarter. And from a very near-term perspective, I do expect us to continue to be a net seller of assets, RJ.

Great. That's it for me. Thanks, guys.

Thanks, RJ.

Again, if you would like to ask a question, please press star followed by the number 1 on your telephone keypad. It seems that as of the moment, we don't have any questions queued up so that concludes our question and answer session. I will now be passing the call over to John Stanner, CEO, for closing remarks.

Thank you all for joining us today. We look forward to speaking with many of you over the coming weeks and months. Have a great day. Thank you.

Thank you everyone for attending this call. You may now disconnect.