NYSE:INN.PRE

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Executive Summary

Summit 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.


Snowflake Analysis

Very undervalued with reasonable growth potential.


Similar Companies

Share Price & News

How has Summit Hotel Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: INN.PRE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.2%

INN.PRE

5.5%

US REITs

2.7%

US Market


1 Year Return

-26.2%

INN.PRE

-9.8%

US REITs

9.1%

US Market

Return vs Industry: INN.PRE underperformed the US REITs industry which returned -14.8% over the past year.

Return vs Market: INN.PRE underperformed the US Market which returned 4.1% over the past year.


Shareholder returns

INN.PREIndustryMarket
7 Day5.2%5.5%2.7%
30 Day4.3%1.0%4.5%
90 Day-24.3%-10.5%2.3%
1 Year-20.8%-26.2%-6.0%-9.8%11.5%9.1%
3 Yearn/a10.3%-3.4%30.6%22.0%
5 Yearn/a40.2%11.2%57.2%39.5%

Price Volatility Vs. Market

How volatile is Summit Hotel Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Summit Hotel Properties undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INN.PRE ($17.25) is trading below our estimate of fair value ($86.29)

Significantly Below Fair Value: INN.PRE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: INN.PRE is good value based on its PE Ratio (14.5x) compared to the REITs industry average (25.8x).

PE vs Market: INN.PRE is good value based on its PE Ratio (14.5x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: INN.PRE is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: INN.PRE is good value based on its PB Ratio (0.5x) compared to the US REITs industry average (1.3x).


Next Steps

Future Growth

How is Summit Hotel Properties forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

47.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INN.PRE's forecast earnings growth (52.9% per year) is above the savings rate (2.2%).

Earnings vs Market: INN.PRE's earnings (52.9% per year) are forecast to grow faster than the US market (21.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: INN.PRE's revenue (13% per year) is forecast to grow faster than the US market (8.9% per year).

High Growth Revenue: INN.PRE's revenue (13% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INN.PRE is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Summit Hotel Properties performed over the past 5 years?

-2.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INN.PRE has a large one-off gain of $37.7M impacting its March 31 2020 financial results.

Growing Profit Margin: INN.PRE's current net profit margins (7.6%) are lower than last year (14%).


Past Earnings Growth Analysis

Earnings Trend: INN.PRE's earnings have declined by -2.9% per year over the past 5 years.

Accelerating Growth: INN.PRE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: INN.PRE had negative earnings growth (-50.4%) over the past year, making it difficult to compare to the REITs industry average (5.3%).


Return on Equity

High ROE: INN.PRE's Return on Equity (4.5%) is considered low.


Next Steps

Financial Health

How is Summit Hotel Properties's financial position?


Financial Position Analysis

Short Term Liabilities: INN.PRE's short term assets ($188.1M) exceed its short term liabilities ($83.5M).

Long Term Liabilities: INN.PRE's short term assets ($188.1M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: INN.PRE's debt to equity ratio (98.6%) is considered high.

Reducing Debt: INN.PRE's debt to equity ratio has increased from 81.1% to 98.6% over the past 5 years.

Debt Coverage: INN.PRE's debt is not well covered by operating cash flow (10.7%).

Interest Coverage: INN.PRE's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Summit Hotel Properties's current dividend yield, its reliability and sustainability?

2.34%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate INN.PRE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate INN.PRE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if INN.PRE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if INN.PRE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: INN.PRE is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of INN.PRE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.9yrs

Average management tenure


CEO

Dan Hansen (50yo)

9.92yrs

Tenure

US$5,009,723

Compensation

Mr. Daniel P. Hansen, also known as Dan, is the Chief Executive Officer and President at Hotel Properties, Inc. since June 2010 and serves as its Chairman of the Board since January 18, 2017. Mr. Hansen ha ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD5.01M) is above average for companies of similar size in the US market ($USD2.29M).

Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Hansen
Chairman9.92yrsUS$5.01m1.23% $8.2m
Jonathan Stanner
Executive VP2.17yrsUS$2.22m0.27% $1.8m
Craig Aniszewski
Executive VP & COO9.92yrsUS$2.19m0.33% $2.2m
Paul Ruiz
Senior VP & Chief Accounting Officer6.08yrsUS$998.35k0.13% $865.7k
Christopher Eng
Chief Risk Officer9.92yrsUS$1.35m0.16% $1.1m
Adam Wudel
SVP - Finance & Capital Marketsno datano datano data

9.9yrs

Average Tenure

49yo

Average Age

Experienced Management: INN.PRE's management team is seasoned and experienced (9.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Hansen
Chairman9.92yrsUS$5.01m1.23% $8.2m
Kenneth Kay
Independent Director5.83yrsUS$181.62k0.058% $387.5k
Jeffrey Jones
Lead Independent Director3.33yrsUS$204.12k0.058% $387.5k
Thomas Storey
Independent Director9.17yrsUS$166.62k0.12% $833.4k
Bjorn R. Hanson
Independent Director9.17yrsUS$176.62k0.071% $472.4k
Hope Taitz
Independent Director2.83yrsUS$169.12k0.036% $241.6k

4.6yrs

Average Tenure

59.5yo

Average Age

Experienced Board: INN.PRE's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Summit Hotel Properties, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Summit Hotel Properties, Inc.
  • Ticker: INN.PRE
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Implied Market Cap: US$667.643m
  • Market Cap: US$666.355m
  • Shares outstanding: 105.81m
  • Website: https://www.shpreit.com

Number of Employees


Location

  • Summit Hotel Properties, Inc.
  • 13215 Bee Cave Parkway
  • Suite B-300
  • Austin
  • Texas
  • 78738
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INNNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2011
SDPDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2011
INN.PRDNYSE (New York Stock Exchange)RED PFD SER DUSUSDJun 2016
INN.PRENYSE (New York Stock Exchange)6.250% CUM PFD EUSUSDNov 2017

Biography

Summit 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 May 11, 2020, the Company's portfolio consisted of 72 hotels, 67 of which were wholly owned, with a total of 11,288 guestrooms located in 23 states. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/29 08:51
End of Day Share Price2020/05/28 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.