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Summit Hotel Properties (INN)
NYSE:INN
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Summit Hotel Properties
(NYSE:INN)
67Neutral
Summit Hotel Properties (INN) vs. S&P 500 (SPY)
Market Cap
$487.61M
Dividend Yield8.36%
Average Volume (3M)1.17M
Price to Earnings (P/E)17.4
Beta (1Y)1.31
Revenue Growth-0.59%
EPS GrowthN/A
CountryUS
Employees85
SectorReal Estate
Sector Strength77
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)0.15
Shares Outstanding111,381,530
10 Day Avg. Volume1,182,688
30 Day Avg. Volume1,171,829
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.83
Price to Cash Flow (P/CF)4.70
P/FCF Ratio4.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.00Price Target Upside76.77% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering1
Summit Hotel Properties Business Overview & Revenue Model
Company DescriptionSummit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded hotels with efficient operating models primarily in the Upscale segment of the lodging industry. As of November 3, 2020, the Company's portfolio consisted of 72 hotels, 67 of which are wholly owned, with a total of 11,288 guestrooms located in 23 states.
How the Company Makes MoneySummit Hotel Properties generates revenue primarily through hotel operations, which include room rentals, food and beverage sales, and other ancillary services offered to guests. The company earns income by acquiring, owning, and managing a portfolio of hotel properties, leveraging its partnerships with established hotel brands to attract a diverse clientele. Key revenue streams include room revenues, which are derived from the nightly rates charged to guests, and ancillary revenues from dining, events, and other hotel services. The company's earnings are also influenced by factors such as occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR). Strategic partnerships with hotel management companies and brand operators help optimize operational efficiency and enhance the guest experience, contributing to the company's financial performance.
Summit Hotel Properties Financial Statement Overview
Summary
Summit Hotel Properties exhibits solid financial health with improvements post-pandemic. Revenue recovery and positive net income trajectory are notable, but profitability margins still need enhancement. A strong balance sheet and cash flow generation bolster financial standing.Income Statement
Summit Hotel Properties shows a mixed performance in its income statement. The company has demonstrated revenue recovery from the pandemic lows, with a significant increase from 2020 to 2023. However, the net profit margin remains low, and profitability metrics like EBIT and EBITDA margins show room for improvement. The company turned net income positive in 2022 and maintained it in 2023, indicating a positive trajectory.65
Positive
Balance Sheet
The balance sheet is robust, with a strong equity ratio and no total debt reported in the latest period. Historically, the company has reduced its debt significantly, enhancing financial stability. The return on equity has turned positive, reflecting improved profitability. The healthy cash and equivalents position further strengthens the balance sheet.75
Positive
Cash Flow
Cash flow analysis reveals a strong operating cash flow position, with consistent free cash flow generation. The free cash flow growth rate is positive, indicating efficient management of cash resources. The conversion of operating cash flow to net income is favorable, supporting operational sustainability.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 731.78M | 736.13M | 675.70M | 361.93M | 234.46M | Gross Profit |
| 259.64M | 258.02M | 255.90M | 117.31M | 34.07M | EBIT |
| 103.49M | 58.79M | 67.78M | -15.77M | -102.79M | EBITDA |
| 259.22M | 212.40M | 208.05M | 83.07M | 1.98M | Net Income Common Stockholders |
| 25.14M | -9.49M | 1.47M | -68.58M | -149.25M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.79B | 51.80M | 51.26M | 64.48M | 20.72M | Total Assets |
| 2.90B | 2.94B | 3.02B | 2.26B | 2.23B | Total Debt |
| 1.42B | 1.46B | 1.69B | 1.09B | 1.11B | Net Debt |
| -40.64M | 1.42B | 1.64B | 1.02B | 1.09B | Total Liabilities |
| 1.51B | 1.54B | 1.56B | 1.16B | 1.18B | Stockholders Equity |
| 909.54M | 911.20M | 959.81M | 948.07M | 988.74M |
| Cash Flow | Free Cash Flow | |||
| 166.32M | 64.06M | 93.15M | 45.70M | -64.68M | Operating Cash Flow |
| 166.32M | 153.64M | 169.62M | 66.05M | -42.05M | Investing Cash Flow |
| -71.50M | -101.96M | -290.51M | -74.24M | -30.71M | Financing Cash Flow |
| -94.23M | -65.72M | 85.76M | 66.24M | 41.83M |
Summit Hotel Properties Technical Analysis
Negative
3.96
Price Trends
5.43
Negative
6.04
Negative
6.15
Negative
Market Momentum
-0.48
Negative
32.57
Neutral
38.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INN, the sentiment is Negative. The current price of 3.96 is below the 20-day moving average (MA) of 4.36, below the 50-day MA of 5.43, and below the 200-day MA of 6.15, indicating a bearish trend. The MACD of -0.48 indicates Negative momentum. The RSI at 32.57 is Neutral, neither overbought nor oversold. The STOCH value of 38.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INN.
Summit Hotel Properties Risk Analysis
Summit Hotel Properties disclosed 70 risk factors in its most recent earnings report. Summit Hotel Properties reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Summit Hotel Properties Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $487.61M | 17.39 | 4.75% | 8.36% | -0.59% | ― | |
65 Neutral | $337.00M | ― | 0.53% | 4.33% | 1.96% | 27.47% | |
60 Neutral | $1.01B | 64.83 | 1.24% | 5.00% | 1.33% | -10.65% | |
59 Neutral | $2.73B | 11.72 | 0.09% | 8795.52% | 5.45% | -17.33% | |
57 Neutral | $124.04M | ― | -0.23% | 10.81% | -1.48% | 32.04% | |
56 Neutral | $301.61M | ― | -26.52% | 23.59% | 1.22% | -743.18% | |
42 Neutral | $36.85M | ― | -25.85% | ― | -14.26% | 84.97% |
* Real Estate Sector Average
Performance Comparison
INN
Summit Hotel Properties
3.96
-1.81
-31.37%
SVC
Service Properties
1.78
-4.16
-70.03%
CLDT
Chatham Lodging
7.01
-1.80
-20.43%
AHT
Ashford Hospitality
6.38
-5.42
-45.93%
BHR
Braemar Hotels & Resorts
1.90
-0.55
-22.45%
XHR
Xenia Hotels & Resorts
10.41
-3.22
-23.62%
Summit Hotel Properties Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -37.54% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and strategic acquisitions, contributing to growth in key metrics such as AFFO per share and RevPAR. The company's effective cost management and strategic capital markets activities further strengthened its financial positioning. However, challenges such as weather disruptions and specific market struggles were noted. Overall, the positive aspects of growth and strategic execution outweighed the lowlights.Highlights
AFFO Per Share Growth
Summit Hotel Properties achieved a full year AFFO per share growth of nearly 6% in 2024.
RevPAR Growth and Market Outperformance
For the third consecutive year, Summit's RevPAR growth exceeded the industry average, with pro forma RevPAR growth increasing 1.8% for the year.
Successful Transaction Activity
Acquisition of the Hampton Inn Boston-Logan Airport and Hilton Garden Inn Tysons Corner for $96 million with an 8.8% capitalization rate, contributing to RevPAR growth of over 6% for the two hotels in 2024.
Strong Operating Platform
RevPAR market share index increased nearly 300 basis points, and hotel EBITDA margin expanded by over 200 basis points over the last three years.
Urban and Suburban Portfolio Performance
RevPAR increased nearly 3% and 4% for urban and suburban portfolios, respectively, outperforming the total industry by 100 and 220 basis points.
Capital Market Activities and Balance Sheet Strength
Successfully refinanced a $225 million unsecured term loan, repaid $42 million Metabank loan, and drew $50 million on the credit facility, leading to a well-positioned balance sheet with leverage reduced by nearly a full turn.
Lowlights
Challenges in San Francisco Market
Despite overall strong market performance, San Francisco faced well-documented challenges in recovery.
Impact of Weather Disruptions
January winter storms resulted in airport closures, leading to a modest decline in RevPAR for the month.
Resort and Small-Town Metro RevPAR Decline
Full year 2024 RevPAR declined modestly year-over-year in resort and small-town metro assets, primarily due to Hurricane Helene and the repositioning of Courtyard Fort Lauderdale Beach.
Company Guidance
In the 2024 earnings call for Summit Hotel Properties, the company highlighted several key metrics and strategies that demonstrated their strong performance and strategic planning for future growth. Summit reported an AFFO per share growth of nearly 6% for the year, with pro forma RevPAR growth rising by 1.8%, exceeding the industry average for the third consecutive year. The company maintained flat pro forma hotel EBITDA margins, benefiting from a controlled operating expense growth of just 1.5% per occupied room. Despite a challenging RevPAR growth environment and difficult property tax comparisons, the pro forma hotel EBITDA increased by 2% year-over-year. Summit's strategic acquisitions, such as the Hampton Inn Boston-Logan Airport and Hilton Garden Inn Tysons Corner, were executed at an attractive 8.8% capitalization rate based on net operating income. This acquisition is expected to yield a significant positive NOI and RevPAR spread compared to dispositions, resulting in a 400 basis point yield spread and a 70% RevPAR premium. The company's balance sheet was strengthened by reducing corporate leverage by nearly a full turn of EBITDA, growing adjusted EBITDA by over 6%, and increasing the common dividend by nearly 40% annually. Summit's outlook for 2025 includes expected RevPAR growth of 1% to 3% and a focus on robust group demand and business transient travel recovery, especially in urban markets. The company plans to continue high ROI capital investments and maintain a strategic approach to acquisitions and dispositions to capture long-term growth opportunities.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.