Summit Hotel Properties upgraded to Neutral at BofA on core real estate value

As previously reported, BofA upgraded Summit Hotel Properties (INN) to Neutral from Underperform with an unchanged price target of $5. Summit’s financial leverage “obfuscates core real estate trading well below replacement cost,” the analyst tells investors. The firm had been cautious on Lodging REITs since late 2021, but turns “selectively more constructive” as valuations have collapsed and stocks in the group under its coverage already imply 8%-10% RevPAR and 15%-20% EBITDA declines, the analyst added.