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Summit Hotel Properties (INN)
NYSE:INN
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Summit Hotel Properties
(NYSE:INN)
64Neutral
Summit Hotel Properties (INN) vs. S&P 500 (SPY)
Market Cap
$557.47M
Dividend Yield7.36%
Average Volume (3M)1.18M
Price to Earnings (P/E)36.2
Beta (1Y)1.30
Revenue Growth-1.86%
EPS GrowthN/A
CountryUS
Employees85
SectorReal Estate
Sector Strength65
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)-0.04
Shares Outstanding112,221,375
10 Day Avg. Volume1,279,638
30 Day Avg. Volume1,182,926
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)0.51
Price to Sales (P/S)0.00
P/FCF Ratio2.66
Enterprise Value/Market Cap3.37
Enterprise Value/Revenue0.64
Enterprise Value/Gross Profit10.25
Enterprise Value/Ebitda2.04
Forecast
1Y Price Target
$5.00Price Target Upside16.01% Upside
Rating ConsensusHold
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 strong financial health with a stable gross profit margin, improved net profit margin, and effective cost management. The balance sheet reflects stability with manageable debt levels, and cash flow is robust, indicating effective capital expenditure management.Income Statement
Summit Hotel Properties shows a stable gross profit margin and has improved its net profit margin significantly from negative in previous years to a positive 5.64% TTM. Revenue growth has been moderate, with a slight decline in recent periods. The EBIT and EBITDA margins are healthy, indicating effective cost management and operational efficiencies.75
Positive
Balance Sheet
The company maintains a reasonable debt-to-equity ratio of 1.57, suggesting balanced leverage. Return on equity is modest at 4.46% TTM, reflecting improved profitability. The equity ratio stands at 31.78%, indicating a solid equity base to support assets. Overall, the balance sheet reflects stability with manageable debt levels.70
Positive
Cash Flow
The operating cash flow to net income ratio is strong, demonstrating robust cash generation relative to net income. Free cash flow has improved significantly, showcasing effective capital expenditure management. The free cash flow to net income ratio indicates solid cash conversion, highlighting the company's capability to generate cash from operations.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 728.12M | 731.78M | 736.13M | 675.70M | 361.93M | 234.46M | Gross Profit |
| 183.57M | 259.64M | 258.02M | 255.90M | 117.31M | 34.07M | EBIT |
| 71.49M | 103.49M | 58.79M | 67.78M | -15.77M | -102.79M | EBITDA |
| 226.09M | 227.74M | 212.40M | 208.05M | 83.07M | 1.98M | Net Income Common Stockholders |
| 41.07M | 43.64M | -9.49M | 1.47M | -68.58M | -149.25M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 48.19M | 40.64M | 51.80M | 51.26M | 64.48M | 20.72M | Total Assets |
| 2.90B | 2.90B | 2.94B | 3.02B | 2.26B | 2.23B | Total Debt |
| 1.44B | 1.42B | 1.46B | 1.69B | 1.09B | 1.11B | Net Debt |
| 1.39B | 1.38B | 1.42B | 1.64B | 1.02B | 1.09B | Total Liabilities |
| 1.53B | 1.51B | 1.54B | 1.56B | 1.16B | 1.18B | Stockholders Equity |
| 920.44M | 909.54M | 911.20M | 959.81M | 948.07M | 988.74M |
| Cash Flow | Free Cash Flow | ||||
| 183.05M | 166.32M | 64.06M | 93.15M | 45.70M | -64.68M | Operating Cash Flow |
| 164.02M | 166.32M | 153.64M | 169.62M | 66.05M | -42.05M | Investing Cash Flow |
| -78.16M | -71.50M | -101.96M | -290.51M | -74.24M | -30.71M | Financing Cash Flow |
| -101.66M | -94.23M | -65.72M | 85.76M | 66.24M | 41.83M |
Summit Hotel Properties Technical Analysis
Negative
4.31
Price Trends
4.58
Negative
5.51
Negative
5.91
Negative
Market Momentum
-0.01
Negative
48.62
Neutral
37.33
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 4.31 is above the 20-day moving average (MA) of 4.19, below the 50-day MA of 4.58, and below the 200-day MA of 5.91, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 48.62 is Neutral, neither overbought nor oversold. The STOCH value of 37.33 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $1.20B | 54.20 | 1.83% | 4.12% | 3.57% | 12.66% | |
66 Neutral | $351.71M | 124.65 | 1.42% | 4.18% | 1.75% | ― | |
64 Neutral | $557.47M | 36.16 | 4.45% | 7.36% | -1.86% | ― | |
60 Neutral | $2.82B | 10.29 | 0.31% | 8508.26% | 5.91% | -17.42% | |
60 Neutral | $142.81M | ― | -0.90% | 9.39% | -2.42% | 23.64% | |
54 Neutral | $368.27M | ― | -33.91% | 10.41% | 0.78% | -128.16% | |
41 Neutral | $35.93M | ― | -25.85% | ― | -14.65% | -55.62% |
* Real Estate Sector Average
Performance Comparison
INN
Summit Hotel Properties
4.31
-1.41
-24.65%
SVC
Service Properties
2.17
-3.09
-58.75%
CLDT
Chatham Lodging
7.12
-1.42
-16.63%
AHT
Ashford Hospitality
6.16
-6.94
-52.98%
BHR
Braemar Hotels & Resorts
2.06
-0.43
-17.27%
XHR
Xenia Hotels & Resorts
11.90
-2.01
-14.45%
Summit Hotel Properties Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 7.75%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. There were notable achievements, such as the strong performance of the urban portfolio and successful renovation projects. However, these were offset by declines in RevPAR, challenging special event comparisons, and softening demand in key segments. The approval of a share repurchase program signals management's confidence in the long-term value of the company, but the current economic uncertainties and pressures are significant.Q1-2025 Updates
Positive Updates
Urban Portfolio Performance
RevPAR in the company's urban portfolio increased nearly 3%, outpacing the total industry by approximately 80 basis points. Strong performers included New Orleans, Tampa, San Francisco, Chicago, and Downtown Houston, all with RevPAR growth of 7% or higher.
Successful Renovation
The Courtyard by Marriott Oceanside, Fort Lauderdale Beach completed a comprehensive renovation, expected to significantly increase average rates and close the rate gap with competitive oceanfront properties.
Share Repurchase Program
A $50 million share repurchase program was approved to return capital to shareholders, driven by significant dislocation in the company's stock price.
Margin Management
Despite modest RevPAR growth, hotel EBITDA margin contraction was limited to 49 basis points due to strong cost control measures like reducing contract labor by 9% and improving employee retention.
Negative Updates
RevPAR Decline in March
March RevPAR declined 1.6% in the same-store portfolio, with government-related demand particularly weak, leading to a 7% year-over-year decline in qualified revenue.
Challenging Special Event Comparisons
Second-quarter RevPAR is expected to decline between 2% and 4% due to difficult comparisons with last year's special events like the solar eclipse, Final Four, and Kentucky Derby.
Demand Softening in Government and International Travel
Demand for government and international travel segments showed significant weakening, with no clear signs of immediate recovery.
Outlook Tracking Towards Lower End of Guidance
Full-year performance is tracking towards the lower end of guidance for adjusted EBITDA, adjusted FFO, and adjusted FFO per share.
Company Guidance
During the first quarter 2025 earnings call, Summit Hotel Properties provided guidance indicating the company's performance is tracking towards the lower end of its full-year forecasts for adjusted EBITDA, adjusted FFO, and adjusted FFO per share. The company expects second quarter RevPAR to decline between 2% and 4% year-over-year, with the first half of the year potentially seeing a 1% RevPAR decline. Summit's updated full-year guidance assumes flat RevPAR growth for 2025, with each 1% increase in full-year RevPAR equating to approximately $5 million in pro rata EBITDA or $0.04 of adjusted FFO per share. Additionally, Summit announced a $50 million share repurchase program, intended to be used opportunistically to enhance shareholder value.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.