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

Good value with proven track record and pays a dividend.


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


Market Performance


7 Day Return

5.4%

NYSE:INN

-2.1%

US REITs

1.2%

US Market


1 Year Return

-11.1%

NYSE:INN

10.1%

US REITs

1.7%

US Market

INN underperformed the REITs industry which returned 10.1% over the past year.

INN underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

INNIndustryMarket
7 Day5.4%-2.1%1.2%
30 Day6.7%0.7%4.9%
90 Day1.3%1.1%3.7%
1 Year-5.3%-11.1%15.1%10.1%3.9%1.7%
3 Year3.9%-11.1%29.8%12.9%47.2%37.7%
5 Year37.0%8.3%65.8%30.7%60.0%42.4%

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 based on future cash flows and its price relative to the stock market?

31%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Summit Hotel Properties's share price is below the future cash flow value, and at a moderate discount (> 20%).

Summit Hotel Properties's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Summit Hotel Properties is good value based on earnings compared to the US REITs industry average.

Summit Hotel Properties is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Summit Hotel Properties earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Summit Hotel Properties is good value based on assets compared to the US REITs industry average.


Next Steps

Future Growth

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

-43.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Summit Hotel Properties's revenue is expected to grow by 1% yearly, however this is not considered high growth (20% yearly).

Summit Hotel Properties's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Summit Hotel Properties's revenue growth is positive but not above the United States of America market average.

Summit Hotel Properties's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Summit Hotel Properties's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Summit Hotel Properties will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

18.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Summit Hotel Properties's year on year earnings growth rate has been positive over the past 5 years.

Summit Hotel Properties's 1-year earnings growth exceeds its 5-year average (63.9% vs 18.4%)

Summit Hotel Properties's earnings growth has exceeded the US REITs industry average in the past year (63.9% vs 17%).


Return on Equity

Summit Hotel Properties has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Summit Hotel Properties used its assets more efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

Summit Hotel Properties's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Summit Hotel Properties's financial position?


Financial Position Analysis

Summit Hotel Properties is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Summit Hotel Properties's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Summit Hotel Properties's level of debt (69.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (72.5% vs 69.3% today).

Debt is not well covered by operating cash flow (18.4%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

6.03%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Summit Hotel Properties's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Summit Hotel Properties's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Whilst dividend payments have been stable, Summit Hotel Properties has been paying a dividend for less than 10 years.

Dividend payments have increased, but Summit Hotel Properties only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (183.2x coverage).


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?

9.3yrs

Average management tenure


CEO

Dan Hansen (50yo)

9.3yrs

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

Dan's remuneration is about average for companies of similar size in United States of America.

Dan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

9.3yrs

Average Tenure

49yo

Average Age

The average tenure for the Summit Hotel Properties management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.9yrs

Average Tenure

59.5yo

Average Age

The tenure for the Summit Hotel Properties board of directors is about average.


Insider Trading

Summit Hotel Properties individual 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
BuyUS$113,50005 Nov 18
Daniel Hansen
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares10,000
Max PriceUS$11.35

Ownership Breakdown


Management Team

  • Dan Hansen (50yo)

    Chairman

    • Tenure: 9.3yrs
    • Compensation: US$4.40m
  • Craig Aniszewski (56yo)

    Executive VP & COO

    • Tenure: 9.3yrs
    • Compensation: US$1.98m
  • Jon Stanner (38yo)

    Executive VP

    • Tenure: 1.5yrs
    • Compensation: US$1.77m
  • Chris Eng (48yo)

    Chief Risk Officer

    • Tenure: 9.3yrs
    • Compensation: US$1.16m
  • Paul Ruiz

    Senior VP & Chief Accounting Officer

    • Tenure: 5.4yrs
    • Compensation: US$807.00k
  • Adam Wudel

    SVP - Finance & Capital Markets

    • Tenure: 0yrs

Board Members

  • Ken Kay (64yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$183.18k
  • Jeff Jones (57yo)

    Lead Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$205.68k
  • Thomas Storey (62yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$168.18k
  • Bjorn R. Hanson (67yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$178.18k
  • Dan Hansen (50yo)

    Chairman

    • Tenure: 9.3yrs
    • Compensation: US$4.40m
  • Hope Taitz (55yo)

    Independent Director

    • Tenure: 2.2yrs
    • 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$1.259b
  • Market Cap: US$1.256b
  • 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 Analysis2019/09/15 00:51
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
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.