Summit Hotel Properties Inc . (NYSE:INN) stock reached a 52-week high this week, touching $7.08 amid a robust recovery in the hospitality sector. The company, which specializes in owning premium-branded hotels, has seen its stock price soar, reflecting a significant 1-year change with an impressive 19.58% increase. This surge underscores investor confidence in the company's growth trajectory and its ability to capitalize on the rebounding travel industry. The 52-week high represents a notable milestone for Summit Hotel Properties, as it continues to navigate the post-pandemic market landscape.
In other recent news, Summit Hotel Properties has reported strong financial performance for the 2024 second quarter, marking a record high in adjusted EBITDAre and notable growth in adjusted funds from operations (FFO). The company's pro forma revenue per available room (RevPAR) surpassed the U.S. lodging industry average, fueled by increased occupancy in urban and suburban markets. Despite a downward revision of its full-year RevPAR growth forecast due to softer demand, Summit Hotel Properties upheld its adjusted FFO ranges and declared a quarterly dividend. The company also successfully sold nine hotels for $131 million, reducing its net debt-to-EBITDA ratio.
In the recent developments, Summit Hotel Properties' adjusted EBITDAre rose by 6% to nearly $56 million, setting a new quarterly record. The company's adjusted FFO increased by 10% year-over-year, marking the second consecutive quarter of double-digit growth. Despite lowering its full-year RevPAR growth forecast, the company maintains optimism for rate growth in the fall with the shift to business and group travel. Furthermore, Summit Hotel Properties declared a quarterly common dividend of $0.08 per share.
Lastly, the company anticipates a full-year hotel EBITDA margin decline of 25 basis points but expects flat to 2.5% RevPAR growth in the latter half of the year. The company also expects below-average industry supply growth for several years. These recent developments reflect Summit Hotel Properties' resilience and adaptability in a dynamic industry.
InvestingPro Insights
Summit Hotel Properties Inc.'s (INN) recent achievement of a 52-week high is further supported by InvestingPro data, which reveals a strong 3-month price total return of 20.4%. This aligns with the article's mention of the stock's impressive 19.58% increase over the past year. The company's current price is 99.51% of its 52-week high, confirming its robust performance.
InvestingPro Tips highlight that INN is trading at a low EBITDA valuation multiple, which could suggest potential undervaluation despite the recent stock price surge. Additionally, the company boasts a high shareholder yield, indicating a commitment to returning value to investors. This is particularly relevant given the article's focus on investor confidence in the company's growth trajectory.
For investors seeking a deeper understanding of Summit Hotel Properties' financial health and market position, InvestingPro offers 9 additional tips, providing a comprehensive analysis to inform investment decisions in the rebounding hospitality sector.
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