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INN Summit Hotel Properties

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 February 23, 2021, the Company's portfolio consisted of 72 hotels, 67 of which are wholly owned, with a total of 11,288 guestrooms located in 23 states.

Company profile

Ticker
INN, INN+F
Exchange
Website
CEO
Daniel P. Hansen
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Summit Hotel GP, LLC • Summit Hotel OP, LP • Summit Hotel TRS, Inc • Summit Hotel TRS 147-A, Inc. • Summit Hotel TRS 148, Inc. • Summit Hotel TRS 149, Inc. • Summit Hotel TRS 150, Inc. • Summit Hotel TRS 151, Inc. • Summit Hotel TRS 152, Inc. • Summit Arlington CTY License, LLC ...
IRS number
272962512

INN stock data

(
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Calendar

3 Aug 21
26 Oct 21
31 Dec 21
Quarter (USD)
Jun 21 Mar 21 Dec 20 Sep 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 78.17M 78.17M 78.17M 78.17M 78.17M 78.17M
Cash burn (monthly) (positive/no burn) 5.42M 6.76M 11.16M (positive/no burn) 532.58K
Cash used (since last report) n/a 21.09M 26.32M 43.41M n/a 2.07M
Cash remaining n/a 57.09M 51.86M 34.77M n/a 76.1M
Runway (months of cash) n/a 10.5 7.7 3.1 n/a 142.9

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
13 Aug 21 Aniszewski Craig J Common Stock Sell Dispose S No No 9.07 16,881 153.11K 486,538
12 Aug 21 Aniszewski Craig J Common Stock Sell Dispose S No No 9.1213 28,119 256.48K 503,419
11 Aug 21 Daniel P Hansen Common Stock Sell Dispose S Yes No 9.0321 350,000 3.16M 353,590
17 May 21 William Higgins Conkling Common Stock (Performance-Based Vesting) Grant Acquire A No No 0 64,202 0 183,535
17 May 21 William Higgins Conkling Common Stock (Time-Based Vesting) Grant Acquire A No No 0 42,802 0 119,333
17 May 21 William Higgins Conkling Common Stock (Time-Based Vesting) Grant Acquire A No No 0 76,531 0 76,531

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

95.8% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 216 218 -0.9%
Opened positions 21 26 -19.2%
Closed positions 23 23
Increased positions 70 85 -17.6%
Reduced positions 87 74 +17.6%
13F shares
Current Prev Q Change
Total value 951.67M 1.05B -9.2%
Total shares 101.98M 103.15M -1.1%
Total puts 23.9K 14.6K +63.7%
Total calls 99.4K 62.5K +59.0%
Total put/call ratio 0.2 0.2 +2.9%
Largest owners
Shares Value Change
BLK Blackrock 19.7M $183.85M -0.9%
Vanguard 14.64M $136.55M -0.2%
STT State Street 5.74M $53.58M +2.4%
MCQEF Macquarie 4.74M $44.21M -1.7%
Nuveen Asset Management 3.83M $35.78M +16.7%
GW&K Investment Management 3.42M $31.91M +3.5%
WHG Westwood 2.99M $27.88M +11.4%
Jennison Associates 2.76M $25.75M +35.0%
Geode Capital Management 2.13M $19.89M +3.0%
Victory Capital Management 1.93M $17.98M +5.4%
Largest transactions
Shares Bought/sold Change
PFG Principal Financial Group Inc - Registered Shares 746.13K -977.67K -56.7%
Balyasny Asset Management 755.34K +755.34K NEW
Jennison Associates 2.76M +715.69K +35.0%
Millennium Management 375.79K -663.39K -63.8%
LSV Asset Management 479.53K -622.52K -56.5%
American Century Companies 1.76M +570.95K +47.8%
Nuveen Asset Management 3.83M +547.86K +16.7%
Russell Investments 448.67K -431.76K -49.0%
Allegheny Financial 343.62K +343.62K NEW
BEN Franklin Resources 0 -329.68K EXIT

Financial report summary

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Risks
  • Our business strategy, future results of operations and growth prospects are dependent on achieving revenue and net income growth from anticipated increases in demand for hotel guestrooms and general economic conditions.
  • Our expenses may not decrease if our revenue decreases.
  • We may be unable to complete acquisitions that would grow our business.
  • The sale of certain hotel properties could result in significant tax liabilities unless we are able to defer the taxable gain through like-kind exchanges under Section 1031 of the IRC ("1031 Exchanges").
  • We may fail to successfully integrate acquired hotels or achieve expected operating performance.
  • We may assume liabilities in connection with the acquisition of hotel properties, including unknown liabilities.
  • We may not be able to cause our hotel management companies to operate any of our hotels in a manner that is satisfactory to us, and termination of our hotel management agreements may be costly and disruptive.
  • The management of a large number of hotels in our portfolio is currently concentrated with one hotel management company.
  • Restrictive covenants and other provisions in hotel management and franchise agreements could preclude us from taking actions with respect to the sale, refinancing or rebranding of a hotel that would otherwise be in our best interest.
  • We are required to expend funds to maintain franchisor operating standards and we may experience a loss of a franchise license or a decline in the value of a franchise brand.
  • We rely on external sources of capital to fund future capital needs, and if we encounter difficulty in obtaining such capital, we may not be able to make future acquisitions necessary to grow our business or meet maturing obligations.
  • We have a significant amount of debt, and our organizational documents have no limitation on the amount of additional indebtedness that we may incur in the future.
  • The agreements governing our indebtedness place restrictions on us and our subsidiaries, reducing operational flexibility and creating default risks.
  • Secured debt obligations expose us to the possibility of foreclosure, which could result in the loss of our investment in any hotel subject to mortgage debt or equity pledges.
  • An increase in interest rates would increase our interest costs on our variable rate debt and could have broader effects on the cost of capital for real estate companies and real estate asset values.
  • We hedge our interest rate exposure to manage our exposure to interest rate volatility, however, such arrangements may adversely affect us.
  • Our success depends on key personnel whose continued service is not guaranteed.
  • System security risks, data protection breaches, cyber-attacks and systems integration issues could disrupt our internal operations or services provided to guests at our hotels, and any such disruption could reduce our expected revenue, increase our expenses, damage our reputation and adversely affect our stock price.
  • Joint venture investments could be adversely affected by a lack of sole decision-making authority with respect to such investments, disputes with joint venture partners and the financial condition of joint venture partners.
  • Actions by organized labor could have a material adverse effect on our business.
  • The outbreak of any highly infectious or contagious diseases, could adversely affect the number of guests visiting our hotel properties and disrupt our operations, resulting in a material adverse effect on our business, financial condition, results of operations and cash flows.
  • The novel coronavirus (COVID-19) pandemic has disrupted and may further disrupt our business, which could further materially adversely affect our operations, financial position and results of operations.
  • Economic conditions may adversely affect the lodging industry.
  • We experience a high level of competition from other hotels and alternative accommodations in the markets in which we operate.
  • Our operating results and ability to make distributions to our stockholders may be adversely affected by the risks inherent to the ownership of hotels and the markets in which we operate.
  • We have significant ongoing needs to make capital expenditures at our hotels, which require us to devote funds to these purposes.
  • Hotel development is subject to timing, budgeting and other risks.
  • Customers may increasingly use Internet travel intermediaries.
  • We could incur uninsured and underinsured losses.
  • Consumer trends and preferences, particularly with respect to younger generations, could change away from select-service hotels.
  • Illiquidity of real estate investments could significantly impede our ability to respond to adverse changes in the performance of our hotels or to adjust our portfolio in response to changes in economic and other conditions.
  • We could incur significant costs related to government regulation and litigation over environmental, health and safety matters.
  • Compliance with the laws, regulations and covenants that apply to our hotels, including permit, license and zoning requirements, may adversely affect our ability to make future acquisitions or renovations, result in significant costs or delays and adversely affect our growth strategy.
  • We have fixed obligations related to right-of-use assets on which certain of our hotels are located.
  • The states and localities in which we own material amounts of property or conduct material business operations could raise their income and property tax rates or amend their tax regimes in a manner that increases our state and local tax liabilities.
  • Our fiduciary duties as the general partner of our Operating Partnership could create conflicts of interest.
  • Provisions of our charter may limit the ability of a third party to acquire control of us by authorizing our board of directors to issue additional securities.
  • Provisions of Maryland law may limit the ability of a third party to acquire control of us by requiring our board of directors or stockholders to approve proposals to acquire our company or effect a change in control.
  • Our rights and the rights of our stockholders to take action against our directors and officers are limited.
  • Our stockholders have limited voting rights and our charter contains provisions that make removal of our directors difficult.
  • The ability of our board of directors to change our major policies without the consent of stockholders may not be in our stockholders’ interest.
  • Our board of directors has the ability to revoke our REIT qualification without stockholder approval.
  • We are a holding company with no direct operations. As a result, we rely on funds received from our Operating Partnership to pay liabilities and dividends, our stockholders’ claims will be structurally subordinated to all liabilities of our Operating Partnership and our stockholders will not have any voting rights with respect to our Operating Partnership activities, including the issuance of additional Common Units or Preferred Units.
  • If we are unable to maintain an effective system of internal controls, we may not be able to produce and report accurate financial information on a timely basis or prevent fraud.
  • The New York Stock Exchange (“NYSE”) or another nationally-recognized exchange may not continue to list our securities.
  • The cash available for distribution may not be sufficient to make distributions at expected levels and we may use borrowed funds or funds from other sources to make distributions.
  • The market price of our stock may be volatile due to numerous circumstances beyond our control.
  • The number of shares of our common stock and preferred stock available for future sale could adversely affect the market price per share of our common stock and preferred stock, respectively, and future sales by us of shares of our common stock, preferred stock, or issuances by our Operating Partnership of Common Units may be dilutive to existing stockholders.
  • We may execute future offerings of debt securities, which would be senior to our common and preferred stock upon liquidation, and issuances of equity securities (including Common Units).
  • Failure to remain qualified as a REIT would cause us to be taxed as a regular corporation.
  • Even if we continue to qualify as a REIT, we may face other tax liabilities.
  • Failure to make required distributions would subject us to federal corporate income tax.
  • We have significant REIT distribution requirements to maintain our status as a REIT.
  • The formation of our TRSs increases our overall tax liability.
  • Our TRS lessee structure subjects us to the risk of increased hotel operating expenses.
  • Our Operating Partnership could be treated as a publicly traded partnership taxable as a corporation for federal income tax purposes.
  • Our current hotel management companies, or any other hotel management companies that we may engage in the future may not qualify as “eligible independent contractors,” or our hotels may not be considered “qualified lodging facilities.”
  • Our ownership of our TRSs are subject to limitations and our transactions with our TRSs could cause us to be subject to a 100% penalty tax on certain income or deductions if those transactions are not conducted on arm’s-length terms.
  • If any subsidiary REIT failed to qualify as a REIT, we could be subject to higher taxes and could fail to remain qualified as a REIT.
  • We may be subject to adverse legislative or regulatory tax changes.
  • Stockholders may be restricted from acquiring or transferring certain amounts of our stock.
  • We may pay taxable dividends in our common stock and cash, in which case stockholders may sell shares of our common stock to pay tax on such dividends.
  • The 100% prohibited transactions tax may limit our ability to dispose of our properties, and we could incur a material tax liability if the IRS successfully asserts that the 100% prohibited transaction tax applies to some or all of our past or future dispositions.
  • The IRS could determine that certain payments we have received in the nature of liquidated damages may not be ignored for purposes of the gross income tests applicable to REITs.
Management Discussion
  • The comparisons that follow should be reviewed in conjunction with the unaudited interim Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report on Form 10-Q.
  • •Revenues. The increase in revenues was due to an improvement in our business that has been primarily driven by leisure travel in the second quarter of 2021 as COVID-19 cases began to decline following the administration of vaccines and government restrictions in many jurisdictions being eased or lifted. See "Industry Trends and Outlook - Effects of COVID-19 Pandemic on Our Business" for further information.
  • •RevPAR. The increase in RevPAR was due to an improvement in our business that has been primarily driven by leisure travel in the second quarter of 2021 as our business continues to recover from the negative effect of the COVID-19 pandemic. The increase in RevPAR during the current period is due to a 167.3% increase in occupancy and a 25.6% increase in ADR. See "Industry Trends and Outlook - Effects of COVID-19 Pandemic on Our Business" for further information.
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