Core Insights - The article compares Summit Hotel Properties (INN) and Omega Healthcare Investors (OHI) to determine which stock is more attractive to value investors [1] Valuation Metrics - Both INN and OHI currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] - INN has a forward P/E ratio of 4.59, significantly lower than OHI's forward P/E of 12.66 [5] - INN's PEG ratio is 0.98, while OHI's PEG ratio is 2.11, suggesting INN is more favorably valued in terms of expected earnings growth [5] - INN's P/B ratio is 0.33, compared to OHI's P/B of 2.17, indicating that INN is trading at a lower market value relative to its book value [6] - These valuation metrics contribute to INN receiving a Value grade of A, while OHI has a Value grade of C [6] Conclusion - Based on the valuation figures, INN is considered the superior value option compared to OHI [7]

Core Viewpoint - Summit Hotel Properties, Inc. has declared cash dividends for both common and preferred stock, reflecting a strong commitment to returning value to shareholders [1][2][3]. Dividend Announcements - The Company declared a cash dividend of $0.08 per share for the first quarter ended March 31, 2025, which translates to an annualized dividend yield of 8.2% based on the closing stock price on April 23, 2025 [1]. - A cash dividend of $0.390625 per share for the 6.25% Series E Cumulative Redeemable Preferred Stock and $0.3671875 per share for the 5.875% Series F Cumulative Redeemable Preferred Stock has been authorized for the dividend period ending on May 31, 2025 [2]. - Additionally, a cash distribution of $0.328125 per unit for the unregistered 5.25% Series Z Cumulative Perpetual Preferred Units has been declared for the distribution period ending on May 31, 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 April 24, 2025, the Company's portfolio includes 97 assets, with 53 wholly owned properties and a total of 14,555 guestrooms located across 25 states [4].

Group 1 - The stock of Summit Hotel Properties, Inc. (INN) is experiencing significant attention due to high implied volatility in the options market, particularly for the Jun 20, 2025 $7.50 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in the stock's price, potentially due to an upcoming event [2] - Summit Hotel Properties currently holds a Zacks Rank 3 (Hold) in the REIT and Equity Trust - Other industry, which is in the bottom 37% of the Zacks Industry Rank, with recent downward revisions in earnings estimates from analysts [3] Group 2 - The high implied volatility surrounding Summit Hotel Properties may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4]

AUSTIN, Texas, March 31, 2025 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company") today announced that it has successfully closed on a new $275 million senior unsecured term loan (the "Term Loan"). The Company expects to utilize future proceeds from the Term Loan to repay the majority of the Company's outstanding $287.5 million 1.50% Convertible Senior Notes maturing in February 2026. The Term Loan includes a delayed draw feature available to the Company through March 1, 2026, that wil ...

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 March 26, 2025, the Company's portfolio consisted of 97 assets, 53 of which are wholly owned, with a total of 14,554 guestrooms located in 25 states [2] Financial Reporting - The Company will report financial results for the first quarter of 2025 on Wednesday, April 30, 2025, after the market closes [1] - A quarterly conference call will be conducted on Thursday, May 1, 2025, at 9:00 AM ET [1] Conference Call Access - To access the conference call, pre-registration is required, and registrants will receive a confirmation with dial-in details [4] - A live webcast of the conference call will be available, with a replay accessible in the Investors section of the Company's website until July 31, 2025 [4]

Core Viewpoint - The comparison between Summit Hotel Properties (INN) and National Health Investors (NHI) indicates that INN currently offers better value for investors based on various financial metrics and rankings [1][3][6]. Valuation Metrics - Summit Hotel Properties has a Zacks Rank of 2 (Buy), while National Health Investors has a Zacks Rank of 3 (Hold), suggesting a more favorable earnings outlook for INN [3]. - INN has a forward P/E ratio of 6.19, significantly lower than NHI's forward P/E of 15.80, indicating that INN may be undervalued [5]. - The PEG ratio for INN is 1.32, while NHI's PEG ratio is 4.67, further supporting the notion that INN is a better value option considering expected earnings growth [5]. - INN's P/B ratio stands at 0.45, compared to NHI's P/B of 2.42, reinforcing the assessment of INN as undervalued relative to its book value [6]. - Based on these valuation metrics, INN holds a Value grade of A, while NHI has a Value grade of D, highlighting INN's superior position in terms of value investment [6].

Core Viewpoint - Summit Hotel Properties (INN) and Gaming and Leisure Properties (GLPI) are being compared to determine which stock offers better value for investors at the current time [1] Group 1: Valuation Metrics - INN has a forward P/E ratio of 6.77, while GLPI has a forward P/E of 12.71 [5] - INN's PEG ratio is 1.44, indicating a more favorable valuation compared to GLPI's PEG ratio of 3.31 [5] - INN's P/B ratio is 0.51, significantly lower than GLPI's P/B of 2.92, suggesting that INN is undervalued relative to its book value [6] Group 2: Investment Ratings - Both INN and GLPI currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook for both stocks [3] - INN has been assigned a Value grade of A, while GLPI has a Value grade of C, highlighting INN's superior valuation metrics [6][7]

Financial Data and Key Metrics Changes - In 2024, the company achieved a full year AFFO per share growth of nearly 6% [5] - Pro forma RevPAR growth increased by 1.8% for the year, surpassing the industry average for the third consecutive year [6][24] - Pro forma hotel EBITDA increased by 2% year-over-year, despite a low RevPAR growth environment [6] - Adjusted FFO for full year 2024 was $119.2 million, an increase of nearly 6% versus 2023, with AFFO rising to $0.96 per share from $0.92 per share [28] Business Line Data and Key Metrics Changes - Urban and suburban portfolios saw RevPAR increases of nearly 3% and 4% respectively, outpacing the total industry by 100 and 220 basis points [24] - Resort and small-town metro assets experienced a modest decline in RevPAR, primarily due to Hurricane Helene and ongoing renovations [26] - Pro forma hotel EBITDA for the fourth quarter was $60.4 million, representing a modest decline compared to the previous year [32] Market Data and Key Metrics Changes - Key markets such as New Orleans, Indianapolis, Chicago, Houston, Minneapolis, and Tampa significantly outpaced the pro forma portfolio in the fourth quarter [29] - The company identified six markets poised for outsized growth, including Baltimore, Louisville, Minneapolis, New Orleans, San Francisco, and San Jose, with five markets achieving over 13% RevPAR growth [9][10] Company Strategy and Development Direction - The company continues to focus on disciplined acquisitions and dispositions, acquiring two hotels for $96 million with an attractive capitalization rate of 8.8% [11][12] - A strategic capital investment approach has improved the overall quality of the portfolio, with a RevPAR market share index increasing nearly 300 basis points over the last three years [14] - The company anticipates continued top-line growth in 2025, driven by robust group demand and the recovery of business transient travel [18][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in controlling operating expenses despite more challenging year-over-year comparisons in 2025 [21] - The lodging sector is expected to benefit from a long-term consumer shift towards experiences over material goods, reinforcing a stable demand outlook [22] - The company expects RevPAR growth of 1% to 3% for 2025, with adjusted EBITDA projected between $184 million and $198 million [39] Other Important Information - The company has a total liquidity of approximately $350 million and a leverage ratio nearly a full turn lower than when it initiated its disposition activity [36] - A quarterly common dividend of $0.08 per share was declared, representing a yield of approximately 5% [37] Q&A Session Summary Question: Booking pace and business-oriented demand outlook - Management noted that January was impacted by weather disruptions, but February showed strong RevPAR growth due to Super Bowl demand and catch-up bookings [44][46] Question: Future acquisition strategy - The company plans to remain active in transactions, focusing on high-quality assets and being opportunistic in capital recycling [49][51] Question: RevPAR guidance for 2025 - Management expects continued strength in urban and suburban markets, with a more balanced growth profile compared to 2024 [55] Question: Management company changes and expense management - Changes were made to improve operational efficiency, and management is pleased with the current performance of management companies [60][61] Question: Acquisitions and underwriting returns - The company is excited about recent acquisitions, expecting higher unlevered IRRs compared to pre-pandemic levels [64] Question: Corporate customer trends - Gradual changes in business travel patterns were noted, with a return of larger national accounts [70] Question: Labor market stability - Management indicated that labor markets remain stable, with expectations for continued effective expense management [76][77] Question: Disposition strategy - The company balances capital needs and brand considerations when deciding on asset sales [79][81] Question: GIC joint venture growth - The joint venture continues to perform well, with an appetite for further growth in 2025 [85] Question: Capital markets environment for transactions - The capital markets are improving, making financing accessible for acquisitions [88]

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].