NYSE:INN

Stock Analysis Report

Summit Hotel Properties

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

Fundamentals

Average dividend payer and fair value.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

INN

1.5%

US REITs

0.7%

US Market


1 Year Return

8.9%

INN

14.3%

US REITs

12.9%

US Market

Return vs Industry: INN underperformed the US REITs industry which returned 14.3% over the past year.

Return vs Market: INN underperformed the US Market which returned 12.9% over the past year.


Shareholder returns

INNIndustryMarket
7 Day-0.2%1.5%0.7%
30 Day2.3%-1.4%4.4%
90 Day6.6%1.7%7.2%
1 Year15.9%8.9%19.1%14.3%15.4%12.9%
3 Year0.7%-14.2%41.4%23.7%49.1%39.5%
5 Year33.8%5.3%57.6%24.8%62.7%44.7%

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

Valuation

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

40.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INN ($12.01) is trading below our estimate of fair value ($20)

Significantly Below Fair Value: INN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: INN is good value based on its PE Ratio (19.5x) compared to the REITs industry average (38.2x).

PE vs Market: INN is poor value based on its PE Ratio (19.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: INN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: INN is good value based on its PB Ratio (1.1x) compared to the US REITs industry average (2x).


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?

-40.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INN's earnings are forecast to decline over the next 3 years (-40.4% per year).

Earnings vs Market: INN's earnings are forecast to decline over the next 3 years (-40.4% per year).

High Growth Earnings: INN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: INN's revenue (2.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: INN's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INN's Return on Equity is forecast to be low in 3 years time (4.5%).


Next Steps

Past Performance

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

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INN has large one-off items impacting its financial results.

Growing Profit Margin: INN's current net profit margins (11.7%) are lower than last year (12.5%).


Past Earnings Growth Analysis

Earnings Trend: INN has become profitable over the past 5 years, growing earnings by 11.5% per year.

Accelerating Growth: INN'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 had negative earnings growth (-9.9%) over the past year, making it difficult to compare to the REITs industry average (8.7%).


Return on Equity

High ROE: INN's Return on Equity (6.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Summit Hotel Properties's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: INN has a high level of physical assets or inventory.

Debt Coverage by Assets: INN's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: INN's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if INN has a sufficient allowance for bad loans.

Low Risk Liabilities: INN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if INN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: INN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if INN has an appropriate level of bad loans.


Next Steps

Dividend

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

6.00%

Current Dividend Yield


Dividend Yield vs Market

company6.0%marketbottom25%1.4%markettop25%3.6%industryaverage3.7%forecastin3Years6.0%

Current dividend yield vs market & industry

Notable Dividend: INN's dividend (6%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: INN's dividend (6%) is in the top 25% of dividend payers in the US market (3.64%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, INN has been paying a dividend for less than 10 years.

Growing Dividend: INN's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.3%), INN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: INN's dividends in 3 years are forecast to be thoroughly covered by earnings (0.5% payout ratio).


Next Steps

Management

What is the CEO of Summit Hotel Properties's salary, the management and board of directors tenure and is there insider trading?

9.4yrs

Average management tenure


CEO

Dan Hansen (50yo)

9.4yrs

Tenure

US$4,395,926

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 ($USD4.40M) is about average for companies of similar size in the US market ($USD3.92M).

Compensation vs Earnings: Dan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

9.4yrs

Average Tenure

49yo

Average Age

Experienced Management: INN's management team is seasoned and experienced (9.4 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

59.5yo

Average Age

Experienced Board: INN's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

Insider Buying: INN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$464,00011 Sep 19
Craig Aniszewski
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares40,000
Max PriceUS$11.60

Ownership Breakdown

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


Management Team

  • Dan Hansen (50yo)

    Chairman

    • Tenure: 9.4yrs
    • Compensation: US$4.40m
  • Craig Aniszewski (56yo)

    Executive VP & COO

    • Tenure: 9.4yrs
    • Compensation: US$1.98m
  • Jon Stanner (38yo)

    Executive VP

    • Tenure: 1.7yrs
    • Compensation: US$1.77m
  • Chris Eng (48yo)

    Chief Risk Officer

    • Tenure: 9.4yrs
    • Compensation: US$1.16m
  • Paul Ruiz

    Senior VP & Chief Accounting Officer

    • Tenure: 5.6yrs
    • Compensation: US$807.00k
  • Adam Wudel

    SVP - Finance & Capital Markets

    • Tenure: 0yrs

Board Members

  • Ken Kay (64yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$183.18k
  • Jeff Jones (57yo)

    Lead Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$205.68k
  • Thomas Storey (62yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$168.18k
  • Bjorn R. Hanson (67yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$178.18k
  • Dan Hansen (50yo)

    Chairman

    • Tenure: 9.4yrs
    • Compensation: US$4.40m
  • Hope Taitz (55yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$170.68k

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
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Implied Market Cap: US$1.266b
  • Market Cap: US$1.263b
  • Shares outstanding: 105.38m
  • 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 indu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 00:18
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.