Summit Hotel Properties, Inc. (INN) Bundle
A Brief History of H3 Company
H3 Company, a prominent player in the hospitality industry, has made significant strides over the past few decades. As of 2024, the company operates a portfolio of 96 properties, with a focus on enhancing guest experiences and operational efficiency.
Financial Performance
For the nine months ended September 30, 2024, H3 Company reported total revenues of $558.9 million, a slight increase from $543.6 million in the same period of 2023, reflecting a 2.2% growth year-over-year.
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Total Revenues | $558.9 million | $543.6 million | 2.2% |
| Net Income | $37.975 million | ($6.849 million) | nm |
| Adjusted EBITDA | $150.1 million | $143.6 million | 4.6% |
Operational Metrics
The company’s operational statistics indicate a stable occupancy rate of 74.3% across its properties, with an Average Daily Rate (ADR) of $168.75 and Revenue per Available Room (RevPAR) of $125.42 for the nine-month period ending September 30, 2024.
| Metric | 2024 | 2023 |
|---|---|---|
| Occupancy Rate | 74.3% | 74.4% |
| ADR | $168.75 | $168.35 |
| RevPAR | $125.42 | $125.22 |
Debt and Financial Position
As of September 30, 2024, H3 Company had total debt amounting to $1.348 billion, with a fixed-rate debt ratio of approximately 77%. The company is managing its interest rate exposure through derivative financial instruments, with $600 million of variable-rate debt converted to fixed rates.
| Debt Type | Amount | Average Rate |
|---|---|---|
| Total Debt | $1.348 billion | Varies |
| Fixed Rate Debt | $906 million | ~3.35% - 8.11% |
| Variable Rate Debt | $442 million | ~7.25% - 8.11% |
Equity and Share Performance
For the nine months ended September 30, 2024, H3 Company reported a net loss attributable to common stockholders of $4.272 million, translating to a basic loss per share of $0.04. In comparison, the net income attributable to common stockholders for the same period in 2023 was a loss of $5.438 million.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Loss | ($4.272 million) | ($5.438 million) |
| Basic Loss per Share | ($0.04) | ($0.05) |
Capital Expenditures
During the nine months ended September 30, 2024, H3 Company funded capital expenditures totaling $61.5 million. The company plans to allocate between $75 million and $85 million for capital expenditures in 2024, aimed at enhancing property quality and guest services.
The company’s financial strategy focuses on leveraging operational efficiencies, managing debt prudently, and investing in growth opportunities to strengthen its market position in the hospitality sector.
A Who Owns Summit Hotel Properties, Inc. (INN)
Ownership Structure
As of September 30, 2024, Summit Hotel Properties, Inc. owns approximately 87% of the issued and outstanding common units of limited partnership interest in its Operating Partnership, Summit Hotel OP, LP. The remaining common units are held by various institutional and individual investors. The company also holds all of the Operating Partnership's 6.25% Series E and 5.875% Series F preferred units.
Major Shareholders
The ownership of Summit Hotel Properties, Inc. is characterized by a mix of institutional and individual investors. The top institutional shareholders include:
| Institution | Shares Owned | Percentage of Ownership |
|---|---|---|
| BlackRock, Inc. | 9,750,000 | 9.0% |
| The Vanguard Group, Inc. | 8,500,000 | 7.8% |
| State Street Corporation | 7,000,000 | 6.5% |
| Wellington Management Company, LLP | 5,600,000 | 5.2% |
| Invesco Ltd. | 4,500,000 | 4.2% |
Common and Preferred Stock
As of September 30, 2024, the company has the following stock structure:
| Type of Stock | Shares Issued | Liquidation Preference |
|---|---|---|
| Common Stock | 108,453,266 | N/A |
| Series E Preferred Stock | 6,400,000 | $160,861,000 |
| Series F Preferred Stock | 4,000,000 | $100,506,000 |
Joint Ventures
Summit Hotel Properties is also involved in joint ventures that contribute to its ownership structure. Notable joint ventures include:
| Joint Venture | Ownership Percentage | Number of Properties |
|---|---|---|
| GIC Joint Venture | 51% | 39 |
| Brickell Joint Venture | 90% | 2 |
| Onera Joint Venture | 90% | 1 |
Financial Overview
Summit Hotel Properties reported the following financial metrics for the nine months ended September 30, 2024:
| Metric | Amount (in thousands) |
|---|---|
| Net Income | $37,975 |
| Net Loss Attributable to Common Stockholders | $(4,272) |
| Total Assets | $2,837,283 |
| Total Liabilities | $1,463,783 |
| Total Equity | $1,323,281 |
Recent Transactions
In October 2024, Summit Hotel Properties completed the sale of the Four Points by Marriott San Francisco Airport hotel for $17.7 million, resulting in a gain of approximately $0.4 million.
Conclusion on Ownership Dynamics
Summit Hotel Properties, Inc. maintains a robust ownership structure with significant institutional backing and a strategic approach to joint ventures, enhancing its operational capacity and financial stability.
Summit Hotel Properties, Inc. (INN) Mission Statement
Overview
Summit Hotel Properties, Inc. (INN) aims to enhance shareholder value through the acquisition, ownership, and management of premium branded hotels in the U.S. The company focuses on maximizing returns from its portfolio while maintaining strong operational performance and sustainable practices.
Mission Statement
The mission statement of Summit Hotel Properties emphasizes a commitment to providing exceptional hospitality experiences, fostering a culture of sustainability, and ensuring long-term growth for its investors.
Key Financial Data
The following table summarizes key financial metrics for Summit Hotel Properties as of September 30, 2024:
| Metric | Value |
|---|---|
| Total Assets | $2,837,283,000 |
| Total Liabilities | $1,463,783,000 |
| Equity | $1,323,281,000 |
| Net Income (Loss) for Nine Months | $37,975,000 |
| Net (Loss) Income per Common Share (Basic) | $(0.04) |
| Net (Loss) Income per Common Share (Diluted) | $(0.04) |
| EBITDA for Nine Months | $213,138,000 |
| Adjusted EBITDAre for Nine Months | $150,061,000 |
| Cash and Cash Equivalents | $51,698,000 |
Recent Developments
Summit Hotel Properties has actively engaged in strategic property sales and acquisitions to optimize its portfolio. Notable transactions include:
- Sale of two lodging properties in New Orleans for $73 million in April 2024.
- Sale of Hilton Garden Inn in Bryan, TX for $11 million in April 2024.
- Sale of Hyatt Place in Dallas, TX for $10.3 million in February 2024.
Portfolio Overview
As of September 30, 2024, Summit Hotel Properties owns 96 lodging properties with a total of 14,255 guestrooms. The portfolio is diversified across various brands, primarily Marriott, Hilton, and Hyatt.
| Brand | Number of Properties | Number of Guestrooms |
|---|---|---|
| Marriott | 50 | 7,643 |
| Hilton | 23 | 3,488 |
| Hyatt | 16 | 2,359 |
| IHG | 5 | 708 |
| Independent | 2 | 57 |
Financial Performance
The financial performance of Summit Hotel Properties for the nine months ended September 30, 2024, illustrates a recovery trajectory in the hospitality sector, driven by increased demand for business and group travel.
| Financial Metric | Value |
|---|---|
| Total Revenues | $558,852,000 |
| Total Expenses | $491,838,000 |
| Operating Income | $95,453,000 |
| Net (Loss) Income Attributable to Common Stockholders | $(4,272,000) |
| Comprehensive (Loss) Income Attributable to Common Stockholders | $(13,745,000) |
Sustainability Initiatives
Summit Hotel Properties is committed to sustainable practices across its operations. This includes energy-efficient upgrades and initiatives aimed at reducing the environmental footprint of its properties.
Conclusion
The mission of Summit Hotel Properties, Inc. reflects its dedication to operational excellence, sustainability, and shareholder value, supported by strong financial performance metrics and strategic growth initiatives.
How Summit Hotel Properties, Inc. (INN) Works
Business Model
Summit Hotel Properties, Inc. (INN) operates as a real estate investment trust (REIT), focusing on the ownership of premium-branded, select-service hotels. The company's portfolio consists of properties primarily under the Marriott, Hilton, and Hyatt brands.
Portfolio Overview
As of September 30, 2024, Summit's total portfolio comprised 96 properties with a total of 14,255 guestrooms. The breakdown by brand is as follows:
| Franchise/Brand | Number of Lodging Properties | Number of Guestrooms |
|---|---|---|
| Marriott | 50 | 7,643 |
| Hilton | 23 | 3,488 |
| Hyatt | 16 | 2,359 |
| IHG | 5 | 708 |
| Independent | 2 | 57 |
| Total | 96 | 14,255 |
Financial Performance
For the nine months ended September 30, 2024, Summit reported the following financial metrics:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income (Loss) | $37,975,000 | $(6,849,000) |
| Total Revenues | $558,852,000 | $558,692,000 |
| Total Expenses | $491,838,000 | $499,997,000 |
| Operating Income | $95,453,000 | $58,359,000 |
| Adjusted EBITDAre | $150,061,000 | $143,638,000 |
Revenue Breakdown
The revenue components for the nine months ended September 30, 2024 are as follows:
| Revenue Source | Amount |
|---|---|
| Room Revenue | $497,864,000 |
| Food and Beverage Revenue | $30,174,000 |
| Other Revenue | $30,814,000 |
| Total Revenue | $558,852,000 |
Operational Metrics
Key operational statistics for the total portfolio as of September 30, 2024 include:
| Operational Metric | Value |
|---|---|
| Occupancy Rate | 74.3% |
| Average Daily Rate (ADR) | $168.75 |
| Revenue Per Available Room (RevPAR) | $125.42 |
Cash Flow Analysis
For the nine months ended September 30, 2024, cash flow details are as follows:
| Cash Flow Activity | Amount |
|---|---|
| Net Cash Provided by Operating Activities | $134,138,000 |
| Net Cash Provided by (Used in) Investing Activities | $33,689,000 |
| Net Cash Used in Financing Activities | $(156,558,000) |
| Net Change in Cash | $11,269,000 |
Debt Structure
As of September 30, 2024, the company reported the following debt obligations:
| Debt Type | Amount Outstanding |
|---|---|
| 2024 Term Loan | $200,000,000 |
| Convertible Notes | $287,500,000 |
| GIC Joint Venture Debt | $661,044,000 |
| Total Debt | $1,348,544,000 |
Recent Transactions
During the nine months ended September 30, 2024, Summit completed several key property sales:
- Sold a portfolio of two lodging properties in New Orleans, LA for $73,000,000, resulting in a gain of approximately $28,300,000.
- Sold the Hilton Garden Inn - Bryan (College Station), TX for $11,000,000.
- Sold the Hyatt Place - Dallas (Plano), TX for $10,300,000.
Future Outlook
Summit anticipates capital expenditures of approximately $75,000,000 to $85,000,000 for 2024, funded through operational cash flows and borrowings from the $400 million revolving credit facility.
How Summit Hotel Properties, Inc. (INN) Makes Money
Revenue Streams
Summit Hotel Properties, Inc. primarily generates revenue from three main sources: room rentals, food and beverage operations, and other lodging services. For the nine months ended September 30, 2024, the revenue breakdown was as follows:
| Revenue Source | Amount (in thousands) |
|---|---|
| Room Revenue | $497,864 |
| Food and Beverage Revenue | $30,174 |
| Other Revenue | $30,814 |
| Total Revenue | $558,852 |
Operational Performance
The operational metrics for Summit's portfolio reveal key performance indicators that affect revenue generation. For the nine months ended September 30, 2024:
| Operational Metric | Value |
|---|---|
| Occupancy Rate | 74.3% |
| Average Daily Rate (ADR) | $168.75 |
| Revenue per Available Room (RevPAR) | $125.42 |
Expenses Analysis
In managing operational costs, the total expenses for the nine months ended September 30, 2024 were $491,838, broken down as follows:
| Expense Type | Amount (in thousands) |
|---|---|
| Room Expenses | $111,303 |
| Food and Beverage Expenses | $23,130 |
| Other Lodging Property Operating Expenses | $170,061 |
| Property Taxes, Insurance, and Other | $40,822 |
| Management Fees | $12,059 |
| Depreciation and Amortization | $109,965 |
| Corporate General and Administrative Expenses | $24,488 |
| Total Expenses | $491,838 |
Profitability Metrics
Summit Hotel Properties reported an operating income of $95,453 for the nine months ended September 30, 2024. The other income (expense) metrics included:
| Metric | Amount (in thousands) |
|---|---|
| Interest Expense | $(62,840) |
| Interest Income | $1,473 |
| Gain on Extinguishment of Debt | $3,000 |
| Net Income | $37,975 |
Capital Structure and Debt Management
As of September 30, 2024, Summit Hotel Properties had the following debt obligations:
| Debt Type | Outstanding Amount (in millions) |
|---|---|
| Term Loan | $200.0 |
| Convertible Notes | $287.5 |
| GIC Joint Venture Credit Facility | $200.0 |
| Total Debt | $687.5 |
Recent Property Transactions
In 2024, Summit Hotel Properties executed several property transactions impacting its revenue base:
- Sold four lodging properties.
- Acquired two lodging properties in June 2023.
These transactions have influenced both operational metrics and financial performance, contributing to revenue fluctuations.
Future Outlook
Summit Hotel Properties anticipates continued improvement in RevPAR driven by increasing business transient and group demand. The company is focusing on optimizing operational efficiency and maintaining a disciplined approach to capital expenditures.
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Resources:
- Summit Hotel Properties, Inc. (INN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Summit Hotel Properties, Inc. (INN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Summit Hotel Properties, Inc. (INN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.