Summit Hotel Properties INN Allowance for Doubtful Accounts Receivable (Current)

We grant credit to qualified guests, generally without collateral, in the form of trade accounts receivable. Trade receivables result from the rental of guestrooms and the sales of food, beverage, and banquet services and are payable under normal trade terms. Trade receivables also include credit and debit card transactions that are in the process of being settled. Trade receivables are stated at the amount billed to the guest and do not accrue interest. We regularly review the collectability of our trade receivables. A provision for losses is determined based on previous loss experience and current economic conditions. Our allowance for doubtful accounts was $0.2 million and $0.1 million at June 30, 2026 and December 31, 2025, respectively. Bad debt expense was $0.2 million for the three months ended June 30, 2026, and we recorded no bad debt expense for the three months ended June 30, 2025. Bad debt expense was $0.3 million and $0.1 million for the six months ended June 30, 2026 and 2025, respectively.