Core Viewpoint - Summit Hotel Properties (INN) reported quarterly funds from operations (FFO) of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, but down from $0.22 per share a year ago [1][2] Financial Performance - The FFO surprise for the quarter was 5.26%, and the company has surpassed consensus FFO estimates for four consecutive quarters [2] - Revenues for the quarter ended December 2024 were $172.93 million, surpassing the Zacks Consensus Estimate by 1.01%, but down from $177.44 million year-over-year [3] Market Performance - Summit Hotel Properties shares have declined approximately 7.7% since the beginning of the year, while the S&P 500 has gained 2.2% [4] - The current consensus FFO estimate for the upcoming quarter is $0.23 on revenues of $185.2 million, and for the current fiscal year, it is $0.92 on revenues of $747.22 million [8] Industry Outlook - The REIT and Equity Trust - Other industry is currently ranked in the bottom 44% of over 250 Zacks industries, indicating potential challenges for stock performance [9]

Financial Performance - In 2024, the company experienced same-store revenue growth driven by strong group and improved business transient demand, partially offset by normalization in leisure demand [217]. - Total room revenue for 2024 was $650.7 million, a decrease of 0.8% compared to $656.1 million in 2023, while same-store room revenue increased by 2.0% [236]. - The average daily rate (ADR) for 2024 was $167.48, up 1.5% from $165.04 in 2023, while revenue per available room (RevPAR) increased by 3.7% to $123.19 [236]. - The company's occupancy rate improved to 73.6% in 2024 from 72.0% in 2023, reflecting a year-over-year increase of 2.2% [236]. - Net income for 2024 was $38.891 million, a significant recovery from a loss of $28.116 million in 2023 [247]. - FFO applicable to common shares and Common Units increased to $115.160 million in 2024, up from $96.778 million in 2023, representing a growth of 19.5% [247]. - AFFO applicable to common shares and Common Units rose to $119.206 million in 2024, compared to $112.892 million in 2023, marking an increase of 5.8% [247]. - EBITDA for 2024 was reported at $258.387 million, an increase from $211.836 million in 2023, reflecting a growth of 22% [258]. - The company reported a net income of $164,300,000 for the year ended December 31, 2024, compared to $153,000,000 in 2023, reflecting an increase of 7.4% [285]. Property Transactions - In May 2023, the company sold four lodging properties for a total gross selling price of $28.1 million, with a write-down of $2.9 million recorded prior to the sale [222]. - The GIC Joint Venture acquired the Residence Inn by Marriott in Scottsdale, AZ for approximately $29.0 million in June 2023, with capital contributions from both GIC and the Operating Partnership [223]. - In April 2024, the company completed the sale of two properties in New Orleans for an aggregate selling price of $73.0 million, resulting in a gain of approximately $28.3 million [227]. - Room revenues for the total portfolio decreased by $5.4 million for the year ended December 31, 2024, compared to 2023, primarily due to a $17.5 million decrease from the sale of five lodging properties [237]. - The company completed the acquisition of two hotels in December 2024 for a combined purchase price of $96.0 million, funded through various financing sources [270]. Operating Expenses - The company recorded total operating expenses of $402.2 million in 2024, a decrease of 0.6% compared to $404.5 million in 2023 [236]. - The company’s other revenue, which includes ancillary services, increased by 4.3% to $40.2 million in 2024 compared to $38.6 million in 2023 [236]. - Room expenses decreased by $1.2 million for the year ended December 31, 2024, due to a $5.7 million decrease from the sale of properties, partially offset by a $4.5 million increase in same-store room expenses [238]. - Property taxes, insurance, and other expenses decreased by $1.1 million, mainly due to successful property tax appeal efforts and reductions in state franchise taxes [241]. - Management fees decreased by $2.6 million due to the net effect of property sales and lower management fees from amendments to property management agreements [241]. - Depreciation and amortization expenses decreased by $4.5 million, primarily due to the sale of properties, partially offset by an increase in same-store depreciation from completed renovations [241]. - Interest expense decreased by $4.2 million for the year ended December 31, 2024, compared to 2023 [240]. Debt and Financing - As of December 31, 2024, the company had $10.0 million outstanding on its $400 Million Revolver and $200.0 million on its $200 Million Term Loan [272]. - The GIC Joint Venture had $250.0 million outstanding under its credit facility, which includes a $125.0 million term loan and a $125.0 million revolving line of credit [273]. - The company entered into a $200 million senior unsecured term loan in February 2024, with an initial maturity date of February 2027 [267]. - The company expects to complete the refinancing of $287.5 million of Convertible Notes due in February 2026 prior to their maturity date [272]. - Scheduled debt principal payments for the next 12 months total $46.6 million, primarily due to a loan maturing in June 2025 [277]. - Total debt as of December 31, 2024, is $1,408,007,000, a decrease from $1,445,839,000 in 2023, representing a reduction of approximately 2.9% [280]. - The total joint venture debt as of December 31, 2024, is $710,507,000, an increase from $675,878,000 in 2023 [280]. - The company expects to fund future capital expenditures through cash on hand, working capital, and borrowings under the $400 million revolver [284]. Capital Expenditures - Capital expenditures for the year ended December 31, 2024, amounted to $89,300,000, with an additional $5,200,000 for development expenditures [283]. - The company anticipates capital expenditures between $65,000,000 and $85,000,000 for the year ending December 31, 2025 [284]. Market and Economic Conditions - The lodging industry is sensitive to economic conditions, with performance correlated to U.S. GDP growth and discretionary spending levels [117]. - High inflation rates have moderated but remain above historical levels, potentially affecting operating costs and consumer demand for lodging [114]. - The lodging industry is highly competitive, with significant competition from alternative accommodations like Airbnb, affecting occupancy and revenue [118]. - Operating results are subject to risks such as dependence on business travelers, over-building in markets, and increases in energy costs [120]. - Consumer preferences are shifting, particularly among younger generations, which may affect demand for select-service hotels [127]. - Real estate investments are illiquid, making it difficult to respond to adverse market changes [128]. - Changes in state and local tax rates could increase tax liabilities, adversely affecting financial performance [138]. Regulatory and Compliance Risks - Compliance with environmental and safety regulations may result in significant costs and liabilities [130]. - The company evaluates long-term assets for impairment based on qualitative and quantitative factors, including projected cash flows and market conditions [295]. - The company is subject to a 4% non-deductible excise tax if the actual amount paid to stockholders is less than a minimum specified amount under the IRC [164]. - The company’s ability to meet REIT distribution requirements may force it to borrow funds or sell assets during unfavorable market conditions [165]. - The company must ensure that at least 100 persons beneficially own its capital stock during at least 335 days of a taxable year to maintain REIT status [176]. Risks and Challenges - Cybersecurity risks could disrupt operations and adversely affect revenue, with the company relying on third-party managers for IT security [103]. - The company may face challenges in managing rapidly advancing artificial intelligence, which could impact its competitive position [111]. - The company faces ongoing capital expenditure needs for renovations and improvements, which may impact financial performance [123]. - Development of lodging properties involves risks related to timing and budgeting, potentially affecting financial outcomes [124]. - Increased use of online travel agents (OTAs) could lead to higher commissions and reduced guestroom rates, negatively impacting revenue [125]. - Conflicts of interest may arise due to fiduciary duties owed to limited partners of the Operating Partnership [139]. Corporate Governance - The company has opted out of the business combination provisions of the Maryland General Corporation Law, allowing business combinations to be approved by the board of directors without stockholder consent [142]. - Stockholders' claims are structurally subordinated to all liabilities of the Operating Partnership, which may affect their recovery in bankruptcy or liquidation scenarios [149]. - The company owns approximately 87% of the Common Units in the Operating Partnership, with potential dilution from future issuances [150]. - The board of directors can revoke the company's REIT qualification without stockholder approval, which could lead to federal income tax liabilities [147]. - The company has limited voting rights for stockholders, making it difficult to remove directors or influence major policy changes [144]. - The company may execute future offerings of debt securities and equity securities, which could dilute existing common stockholders' holdings and potentially reduce the market price of common stock [160].

Core Insights - Summit Hotel Properties, Inc. reported a full-year operating income of $103.5 million and an adjusted EBITDAre of $192.2 million for 2024, with an AFFO increase of 5.6% to $0.96 per share [1][5][7] - The company completed over $200 million in accretive transaction activity in 2024, including the acquisition of two hotels for $96 million, which reflects an 8.8% net capitalization rate based on 2024 net operating income [2][11][12] - The outlook for 2025 is positive, driven by stable demand trends and anticipated growth in urban markets, with expected pro forma RevPAR growth between 1.00% and 3.00% [3][20] Financial Performance - For Q4 2024, net income attributable to common stockholders was $0.7 million, or $0.01 per diluted share, compared to a net loss of $16.6 million, or $0.16 per diluted share, in Q4 2023 [7][8] - Pro forma RevPAR increased by 1.4% to $117.21 in Q4 2024, while same-store RevPAR increased by 1.3% to $116.52 [7][8] - Total revenues for the full year 2024 were $731.8 million, a slight decrease from $736.1 million in 2023 [8][33] Acquisition and Disposition Activity - The company acquired the Hampton Inn Boston-Logan Airport and Hilton Garden Inn Tysons Corner, enhancing its portfolio quality and growth profile [2][11] - In 2024, the company sold five hotels for nearly $112 million, contributing to a total of 10 hotels sold since 2023 for approximately $150 million [14][15] Capital Structure and Dividends - As of December 31, 2024, the company had outstanding debt of $1.1 billion with a weighted average interest rate of 4.55% [21] - The company declared a quarterly cash dividend of $0.08 per share, representing an annualized yield of 5.1% based on the closing price on February 21, 2025 [17][18] 2025 Outlook - The company anticipates adjusted EBITDAre for 2025 to be between $184 million and $198 million, with adjusted FFO projected between $111.9 million and $125.6 million [20][19] - Capital expenditures for 2025 are expected to range from $65 million to $85 million [20]

Company Overview - Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded lodging facilities with efficient operating models primarily in the upscale segment of the lodging industry [2] - As of February 19, 2025, the Company's portfolio consisted of 97 assets, 53 of which are wholly owned, with a total of 14,553 guestrooms located in 25 states [2] Upcoming Events - The 2025 Annual Meeting of Stockholders will be held on May 21, 2025, at 8:00 a.m. Eastern Time [1] - The meeting location is the Courtyard by Marriott Oceanside Fort Lauderdale Beach, 440 Seabreeze Boulevard, Fort Lauderdale, Florida 33316 [1] - The meeting is open to all stockholders of record as of March 5, 2025 [1]

Core Viewpoint - Summit Hotel Properties, Inc. has declared cash dividends for both common and preferred stock for the fourth quarter of 2024 and the upcoming dividend period ending February 28, 2025, reflecting the company's commitment to returning value to shareholders [1][2][3]. Dividend Announcements - The company declared a cash dividend of $0.08 per share for the fourth quarter ended December 31, 2024, which corresponds to an annualized dividend yield of 4.8% based on the closing stock price on January 22, 2025 [1]. - A cash dividend of $0.390625 per share has been authorized for the 6.25% Series E Cumulative Redeemable Preferred Stock for the dividend period ending February 28, 2025 [2]. - A cash dividend of $0.3671875 per share has been declared for the 5.875% Series F Cumulative Redeemable Preferred Stock for the same dividend period [2]. - Additionally, a cash distribution of $0.328125 per unit has been authorized for the unregistered 5.25% Series Z Cumulative Perpetual Preferred Units for the distribution period ending February 28, 2025 [3]. - All dividends are payable on February 28, 2025, to holders of record as of February 14, 2025 [3]. Company Overview - Summit Hotel Properties, Inc. is a publicly-traded real estate investment trust focused on owning premium-branded lodging properties primarily in the Upscale segment of the lodging industry [4]. - As of January 23, 2025, the company's portfolio consists of 97 assets, including 53 wholly owned properties, with a total of 14,553 guestrooms located across 25 states [4].

Group 1 - The article discusses the investment potential of hotel REITs, particularly focusing on their preferred shares, which may offer interesting opportunities for investors [1] - The investment group European Small Cap Ideas specializes in high-quality small-cap investment opportunities in Europe, emphasizing capital gains and dividend income [1] - The group provides two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1] Group 2 - The article does not provide specific financial data or performance metrics related to the hotel REITs or the investment group [2]

When it comes to earning investment income, one of the most relevant investment vehicles is Real Estate Investment Trusts (REITs). REITs must distribute at least 90% of their taxable earnings out as dividends. This can lead to incredibly high dividend yields, sometimes reaching into the double digits. Ultimately, REITs can provide big-time dividend income, especially if bought at the right price. They also provide exposure to the real estate market without needing to invest in and maintain physical property ...

AUSTIN, Texas, Jan. 9, 2025 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company") today announced that it will report financial results for the fourth quarter and full year of 2024 on Monday, February 24, 2025, after the market closes. The Company will conduct its quarterly conference call on Tuesday, February 25, 2025, at 9:00 AM ET. To access the conference call, please pre-register using this link. Registrants will receive a confirmation with dial-in details. A live webcast of the co ...

Core Viewpoint - Summit Hotel Properties reported quarterly funds from operations (FFO) of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, and matching the FFO from the same quarter last year [1][2] Financial Performance - The quarterly FFO surprise was 10%, with the company previously expected to post $0.26 per share but actually producing $0.29, resulting in an 11.54% surprise [2] - Revenues for the quarter ended September 2024 were $176.81 million, surpassing the Zacks Consensus Estimate by 0.32%, but down from $181.82 million year-over-year [3] - Over the last four quarters, the company has consistently exceeded consensus FFO and revenue estimates [2][3] Stock Performance and Outlook - Summit Hotel Properties shares have declined approximately 9.1% year-to-date, contrasting with the S&P 500's gain of 20.1% [4] - The company's future stock performance will largely depend on management's commentary during the earnings call and the outlook for FFO [4][5] - Current consensus FFO estimate for the upcoming quarter is $0.20 on revenues of $172.74 million, and for the current fiscal year, it is $0.94 on revenues of $731.03 million [8] Industry Context - The REIT and Equity Trust - Other industry, to which Summit Hotel Properties belongs, is currently ranked in the top 27% of over 250 Zacks industries, indicating a favorable industry outlook [9] - Empirical research suggests a strong correlation between near-term stock movements and trends in estimate revisions, which can impact investor sentiment [6]

Four Points San Francisco Airport Hotel Sold for $17.7 Million Subsequent to Quarter-EndAUSTIN, Texas, Nov. 4, 2024 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company"), today announced results for the three and nine months ended September 30, 2024."We are pleased with our third quarter financial results highlighted by our third consecutive quarter of Adjusted FFO growth as our accretive capital recycling program strategy offset moderate top-line growth in the quarter, that was negative ...