Summit Hotel Properties Stock (NYSE: INN)

Summit Hotel Properties (NYSE:INN) Stock

Summit Hotel Properties

Summit Hotel Properties Inc is a U.S.-based hotel investment company focusing on select-service hotels in the upscale and upper-midscale properties in the U.S. Substantially all of Summit's assets are held and operated by its Operating Partnership, Summit Hotel OP, LP, in which the company holds general and limited partnership interests. The firm has one segment in activities related to investing in real estate. Summit's revenue streams include Room and Other hotel operations revenue. Room comprises the majority of total revenues. The firm's hotels are located in various markets, such as corporate offices, retail centers, airports, state capitols, convention centers, and leisure attractions. Summit's hotels operate under brands, including Marriott, Hilton, Hyatt, and Holiday Inn.


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Summit Hotel Properties, Inc. 6.250% Series E Cumulative Redeemable Preferred Stock

Summit Hotel Properties, Inc. 5.875% Series F Cumulative Redeemable Preferred Stock, $0.01 par value per share

News

Summit Hotel Properties, Through Its JV With GIC, Reveal It Is Under Contract To Acquire Hampton Inn Boston - Logan Airport And Hilton Garden Inn Tysons Corner For Combined Purchase Price Of $96M

Summit Hotel Properties (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INN#NYSE">INN</a>) narrows FY2024 FFO guidance from $0.91-0.99 to $0.92-0.98 vs $0.94 analyst estimate..

Guidance

Summit Hotel Properties Narrows FY2024 FFO Guidance from $0.91-0.99 to $0.92-0.98 vs $0.94 Est

Summit Hotel Properties (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INN#NYSE">INN</a>) reported quarterly earnings of $0.22 per share which beat the analyst consensus estimate of $0.20 by 10 percent. This is unchanged from the same period last year. The company reported quarterly sales of $176.807 million which missed the analyst consensus estimate of $181.296 million by 2.48 percent. This is a 2.75 percent decrease over sales of $181.816 million the same period last year.

Earnings

Earnings Beats

Earnings Misses

Summit Hotel Properties Q3 2024 FFO $0.22 Beats $0.20 Estimate, Sales $176.807M Miss $181.296M Estimate

Summit Hotel Properties (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INN#NYSE">INN</a>) reported quarterly earnings of $0.29 per share which beat the analyst consensus estimate of $0.27 by 7.41 percent. The company reported quarterly sales of $193.903 million which missed the analyst consensus estimate of $193.909 million by 0 percent. This is a 0.30 percent decrease over sales of $194.493 million the same period last year.

Summit Hotel Properties Q2 2024 FFO $0.29 Beats $0.27 Estimate, Sales $193.903M Miss $193.909M Estimate

Summit Hotel Properties Sees FY24 Adj. FFO $0.90-$1.00 Vs $0.92 Est.

Summit Hotel Properties (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INN#NYSE">INN</a>) reported quarterly earnings of $0.24 per share which beat the analyst consensus estimate of $0.20 by 20 percent. This is a 9.09 percent increase over earnings of $0.22 per share from the same period last year. The company reported quarterly sales of $188.142 million which beat the analyst consensus estimate of $184.847 million by 1.78 percent. This is a 3.16 percent increase over sales of $182.383 million the same period last year.

Summit Hotel Properties Q1 2024 FFO $0.24 Beats $0.20 Estimate, Sales $188.142M Beat $184.847M Estimate

U.S. stock futures were higher this morning, with the Dow futures gaining over 50 points on Monday.
Shares of Deutsche Bank Aktiengesellschaft (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DB#NYSE">DB</a>) fell sharply in today's pre-market trading after the company disclosed it estimates it could have to pay up to €1.3 billion related to its Postbank litigation.
Deutsche Bank shares dipped 7.4% to $16.46 in pre-market trading.
Here are some big stocks recording losses in today's pre-market trading session.
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<li>Allego N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ALLG#NASDAQ">ALLG</a>) shares declined 10% to $1.08 in pre-market trading.</li>
<li>Daqo New Energy Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DQ#NYSE">DQ</a>) shares declined 6.5% to $22.20 in pre-market trading after the company missed first-quarter EPS and sales estimates.</li>
<li>Summit Hotel Properties, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INN#NYSE">INN</a>) shares fell 4.9% to $5.83 in pre-market trading.</li>
<li>Altimmune, Inc.. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ALT#NASDAQ">ALT</a>) fell 4.4% to $6.94 pre-market trading after Guggenheim downgraded the stock from Buy to Neutral.</li>
<li>Astera Labs, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ALAB#NASDAQ">ALAB</a>) shares slipped 3.8% to $81.71 in pre-market trading after jumping over 18% on Friday.</li>
<li>MicroStrategy Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) fell 3.7% to $1,235.00 in pre-market trading after gaining over 3% on Friday.</li>
<li>New Oriental Education &amp; Technology Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EDU#NYSE">EDU</a>) shares fell 3% to $80.77 in pre-market trading after gaining around 5% on Friday.</li>
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Summit Hotel Properties Sees FY24 AFFO $0.90-$1.00 Vs $0.91 Est.

Summit Hotel Properties (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INN#NYSE">INN</a>) reported quarterly earnings of $0.22 per share which beat the analyst consensus estimate of $0.20 by 10 percent. The company reported quarterly sales of $177.44 million which beat the analyst consensus estimate of $176.54 million by 0.51 percent. This is a 2.96 percent increase over sales of $172.33 million the same period last year.

Summit Hotel Properties Q4 2023 FFO $0.22 Beats $0.20 Estimate, Sales $177.44M Beat $176.54M Estimate

Every day, Wall Street analysts diligently revise and update ratings and price targets on real estate investment trusts (<a href="https://www.benzinga.com/real-estate/reit">REITs</a>). Sometimes an analyst will analyze several REITs in the same subsector. In these instances, it allows investors to compare and contrast similar stocks to identify which ones are more likely to perform the best in the future.
This week an analyst at Wolfe Research initiated coverage of four hotel REITs and set price targets on two of the four. Take a look at these four REITs to see how each stacks up against the others.
RLJ Lodging Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RLJ#NYSE">RLJ</a>) is a Bethesda, Maryland-based hotel REIT that owns 96 premium-branded hotels with 21,239 rooms across 23 states and Washington, D.C. Its brands include Marriott, Hilton Garden Inn, Embassy Suites and Hyatt.
While still below pre-COVID levels, the occupancy rate increased from 72.7% in the third quarter of 2022 to 74.1% in the third quarter of 2023. Average daily rates (ADR) and revenue per available room (RevPAR) are also higher by about 1.5% than a year ago.
On Jan. 10, Wolfe Research analyst Keegan Carl initiated coverage on RLJ Lodging with an Outperform rating and announced a price target of $15.
RLJ had a flurry of analyst reviews within the last three weeks. Oppenheimer &amp; Co. Inc. rates it Outperform with a $14 price target. Truist Securities calls it a Buy with a $14 price target and Wells Fargo recently maintained it as Equal-Weight with a $12.50 price target.
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Diamondrock Hospitality (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>) is a Bethesda, Maryland-based hotel REIT with a portfolio of 36 premium hotels and resorts consisting of 9,724 rooms in 25 key gateway cities across the U.S. While its revenue has risen this year, RevPAR is still below 2022.
On Jan. 10, Wolfe Research analyst Carl initiated coverage on Diamondrock Hospitality with an Outperform rating and announced a price target of $11.
On Dec. 8, Wells Fargo Securities analyst Dori Kesten downgraded Diamondrock Hospitality from Overweight to Equal-Weight with a $9 price target. Two weeks later, Kesten maintained the Equal-Weight rating while raising the price target to $10.
Summit Hotel Properties Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INN#NYSE">INN</a>) is an Austin, Texas-based hotel REIT that partly or wholly owns 101 assets with 15,035 rooms over 24 states. Marriott, Hyatt and Hilton brands make up 95% of its portfolio.
On Nov. 1, Summit Hotel announced its third-quarter operating results. Funds from operations (FFO) of $0.22 beat the estimates by $0.04 but was below its FFO of $0.27 in the third quarter of 2022. Revenue of $181.8 million beat the estimate of $179.86 million and was ahead of revenue of $178.25 million in the third quarter of 2022.
On Jan. 10, Wolfe Research analyst Carl initiated coverage on Summit Hotel Properties with a Peer Perform rating. No price target was announced. In December, Zacks Investment Research upgraded Summit from Underperform to Neutral. Again, no price target was announced.
Xenia Hotels &amp; Resorts (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHR#NYSE">XHR</a>) is an Orlando, Florida-based hotel REIT that owns and operates 32 luxury and upscale hotels and resorts with 9,514 rooms in 25 markets across the U.S. Marriott, Hyatt and Hilton are some of the brands in its portfolio.
On Jan. 10, Wolfe Research analyst Carl initiated coverage on Xenia Hotels &amp; Resorts with a Peer Perform rating. No price target was announced.
Over the past month, other analysts also have weighed in on Xenia Hotels. Jefferies has a Hold rating with a $14 price target, Wells Fargo rates it Equal-Weight with a $14 price target, and KeyBanc Capital Markets has an Overweight rating with a $15 price target.
In its last earnings report, Xenia missed estimates for both FFO and revenue by small amounts.
The chart below compares each of the four hotel REITs on important measures:&nbsp;&nbsp;
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>Symbol</td>
<td>Price/ FFO</td>
<td>Dividend Yield</td>
<td>Forward Payout Ratio</td>
<td>Performance Last 13 Weeks</td>
</tr>
<tr>
<td>RLJ Lodging</td>
<td>RLJ</td>
<td>7.12</td>
<td>3.46%</td>
<td>24.6%</td>
<td>17.74%&nbsp;</td>
</tr>
<tr>
<td>Diamondrock Hospitality</td>
<td>DRH</td>
<td>10.06</td>
<td>1.28%</td>
<td>12.9%</td>
<td>16.36%</td>
</tr>
<tr>
<td>Summit Hotel Properties</td>
<td>INN</td>
<td>7.71</td>
<td>3.63%</td>
<td>25.5%</td>
<td>13.55%</td>
</tr>
<tr>
<td>Xenia Hotels &amp; Resorts</td>
<td>XHR</td>
<td>8.78</td>
<td>3.02%</td>
<td>26.4%</td>
<td>11.55%</td>
</tr>
</tbody>
</table>
</figure>
The hotel REIT subsector in general is still somewhat undervalued, which can be seen by the lower price/FFO ratios in the chart above. Payout ratios are also quite low, mostly because hotel REITs were decimated in 2020 when the COVID-19 pandemic began. All four REITs severely cut the quarterly dividends that year from much higher levels. Summit Hotel suspended its dividend for over two years.
Over the past three years, all four REITs have produced substantially improved earnings and revenue, but in that time, only RLJ has raised its dividend three times. Two of those raises occurred in 2023. Summit has raised its dividend twice, and Diamondrock and Xenia have not raised the dividends at all. That suggests superior financial strength and confidence by RLJ Lodging, which is also borne out by its having the best performance record of the group over the past 13 weeks.
There are clear reasons why the analyst rated RLJ Lodging and Diamondrock as Outperform, while Summit and Xenia are rated Peer Perform. Of the four, RLJ has the lowest P/FFO ratio, the second-best dividend yield and payout ratio and the best performance over the last 13 weeks. Diamondrock has the second-best performance. However, the $15 price target for RLJ versus the $11 price target for Diamondrock is substantially better, with Diamondrock a slightly better choice than the rest and deserving of its higher rating.
Among the four hotel REITs with initiated coverage by Wolfe Research, RLJ has demonstrated its superiority over the rest of the group.
Weekly REIT Report: REITs are one of the most misunderstood investment options, making it difficult for investors to spot incredible opportunities until it's too late. Benzinga's in-house real estate research team has been working hard to identify the greatest opportunities in today's market, which you can gain access to for free by signing up for the <a href="https://www.benzinga.com/money/reit-newsletter">Weekly REIT Report.</a>
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REIT

Real Estate

Wolfe Research Initiates Coverage On Four Hotel REITs: How Do They Compare?

Wolfe Research analyst Keegan Carl initiates coverage on Summit Hotel Properties (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INN#NYSE">INN</a>) with a Peer Perform rating.

Initiation

Analyst Ratings

Wolfe Research Initiates Coverage On Summit Hotel Properties with Peer Perform Rating

Investors love dividend increases, both for the extra income generated as well as what they convey about the company's overall health. Dividend raises signal to shareholders that the company is experiencing growth in revenue and earnings, demonstrating its ability to pay out higher returns to its investors.
Every so often, events occur that force companies to suspend or drastically cut the dividend. This often leads to a sell-off of the shares. In 2020, hotel real estate investment trusts (REITs) suffered huge declines in revenue per available room (RevPAR) as COVID-19 crushed the number of hotel reservations and many REITs were forced to cut or suspend their dividends.
But by 2022, RevPAR began making a comeback, and hotel REITs were able to reinstate small quarterly dividends. With RevPAR growing further in 2023, several hotel REITs have greatly expanded their dividend payouts.
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Take a look at four hotel REITs that have initiated huge dividend increases in 2023 and whose payout ratios still provide the potential for more increases in 2024.
Ryman Hospitality Properties Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RHP#NYSE">RHP</a>) is a Nashville, Tennessee-based hotel REIT that specializes in large upscale convention center resorts and entertainment venues. Its portfolio of nine hotels includes over 11,400 rooms and more than 3 million square feet of meeting space. Ryman also has a 70% controlling ownership interest in Opry Entertainment Group, which owns the Grand Ole Opry and other entertainment attractions.
COVID-19 forced Ryman to suspend its $0.95 quarterly dividend after the March 2020 payout, and the dividend was reinstated at $0.10 per share in September 2022. The December 2022 payout was then raised to $0.25 per share.
But Ryman has brought back the dividend with even more vigor in 2023, increasing it to $0.75 in March and then another hike to $1 for June and September. That's a 300% increase in total. The present annual yield is 4.03%, but with a payout ratio of only 40%, Ryman investors could see another dividend increase in December, or more likely sometime in 2024.
RLJ Lodging Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RLJ#NYSE">RLJ</a>) is a Bethesda, Maryland-based hotel REIT that owns 96 premium-branded hotels with 21,200 rooms across 23 states and Washington, D.C. Its brands include Marriott, Hilton Garden Inn, Embassy Suites and Hyatt.
To its credit, RLJ Lodging never suspended its dividend during the pandemic in 2020, but a drastic cut from $0.33 to $0.01 per share in March 2020 coincided with a 75% decline in its share price. The dividend was finally increased to $0.05 per share for both the September and December 2022 payments.
In 2023, RLJ raised the dividend to $0.08 in March and then to $0.10 in September, for a total increase of 100%. Its forward funds from operations (FFO) payout is still only 24.8%, leaving plenty of room for further increases to come. The present annual yield is 3.76%.
Summit Hotel Properties Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INN#NYSE">INN</a>) is an Austin, Texas-based hotel REIT that partly or wholly owns 101 assets with 15,035 rooms in 24 states. The Marriott and Hyatt Hilton brands account for 95% of its portfolio.
Summit suspended its $0.18 quarterly dividend after February 2020 and reinstated it at $0.04 per share in August 2022. In May 2023, it hiked the dividend payment by 50% to $0.06 per share, and it has remained at that level for the last three quarters. But with a meager payout ratio of only 27.9%, it would not be surprising to see the quarterly dividend lifted again in 2024. The present dividend yield is 3.78%.&nbsp;
Host Hotels &amp; Resorts Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HST#NYSE">HST</a>) is the largest lodging REIT and one of the largest owners of luxury and upper-upscale hotels. The company owns 77 properties with 42,000 rooms across the United States. Host Hotels is the only lodging REIT member of the S&amp;P 500.
Host Hotels suspended its quarterly dividend of $0.20 per share after March 2020 but reinstated it at $0.03 per share in March 2022. Host then increased the dividend to $0.06 in June and $0.12 in September 2022. In December, it declared a special dividend of $0.20 per share to bring the total fourth-quarter dividend to $0.32.
In June 2023, Host raised the quarterly dividend from $0.12 to $0.15 per share and increased it once more to $0.18 per share in September. The total dividend growth for 2023 was 50%. The increase was initiated despite a loss of $5 million in net income and hotel earnings before interest, taxes, depreciation and amortization (EBITDA) from its Maui, Hawaii, hotels after the fires.
Host Hotel's resiliency and commitment to rewarding its shareholders is apparent, and with a 37.3% payout ratio, another dividend increase could be on the way, either in December or sometime in 2024. The $0.72 annual dividend presently yields 4.09%.
Weekly REIT Report: REITs are one of the most misunderstood investment options, making it difficult for investors to spot incredible opportunities until it's too late. Benzinga's in-house real estate research team has been working hard to identify the greatest opportunities in today's market, which you can gain access to for free by signing up for the <a href="https://www.benzinga.com/money/reit-newsletter">Weekly REIT Report.</a>
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4 Hotel REITs With Huge Dividend Increases In 2023

Summit Hotel Properties (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INN#NYSE">INN</a>) reported quarterly earnings of $0.22 per share. This is a 12 percent decrease over earnings of $0.25 per share from the same period last year. The company reported quarterly sales of $181.82 million which beat the analyst consensus estimate of $180.50 million by 0.73 percent. This is a 2.00 percent increase over sales of $178.25 million the same period last year.

Summit Hotel Properties Q3 2023 AFFO $0.22 Down From $0.25 YoY, Sales $181.82M Beat $180.50M Estimate

General

Summit Hotel Properties Announced That Its Joint Venture With GIC Has Completed The Refinancing Of Its $200 Million Senior Credit Facility, Which Is Comprised Of A $125 Million Revolving Credit Facility And A $75 Million Term Loan

During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a <a href="https://www.benzinga.com/yield-investments"> high dividend payout. </a>
Benzinga readers can review the latest analyst takes on&nbsp;their favorite stocks&nbsp;by visiting our&nbsp;<a href="https://www.benzinga.com/analyst-stock-ratings" target="_blank">Analyst Stock Ratings&nbsp;</a>page. Traders can sort through Benzinga&#39;s extensive database of analyst ratings, including&nbsp;by analyst accuracy. Here&#39;s a look at the most recent high-yield dividend&nbsp;stock ratings from the most accurate Wall Street analysts, according to Benzinga&#39;s&nbsp;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/09/28888638/exclusive-study-finds-benzinga-analyst-ratings-data-yields-market-beating-strategie">Analyst Stock&nbsp;</a><a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/09/28888638/exclusive-study-finds-benzinga-analyst-ratings-data-yields-market-beating-strategie">Ratings</a>.
Below are the ratings of the most accurate analysts for three high-yielding stocks in the real estate sector.
<h3>Summit Hotel Properties, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/inn#NYSE">INN</a>)</h3>
<ul>
<li>Dividend Yield: 4.13%</li>
<li>Raymond James analyst William Crow maintained an Outperform rating and cut the price target from $10 to $8.5 on March 29, 2023. This analyst has an accuracy rate of 72%.</li>
<li>Deutsche Bank analyst Chris Woronka maintained a Buy rating and slashed the price target from $14 to $11 on Oct. 25, 2022. This analyst has an accuracy rate of 62%.</li>
<li>Recent News: Summit Hotel Properties posted better-than-expected quarterly sales.</li>
</ul>
<h3>UDR, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/udr#NYSE">UDR</a>)</h3>
<ul>
<li>Dividend Yield: 4.17%</li>
<li>Scotiabank analyst Nicholas Yulico upgraded the stock from Sector Perform to Sector Outperform and raised the price target from $44 to $45 on Aug. 30, 2023. This analyst has an accuracy rate of 66%.</li>
<li>JP Morgan analyst Anthony Paolone maintained an Overweight rating and cut the price target from $49 to $44 on Aug. 21, 2023. This analyst has an accuracy rate of 72%.</li>
<li>Recent News: UDR reported worse-than-expected second-quarter revenue results.</li>
</ul>
<h3>CubeSmart (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cube#NYSE">CUBE</a>)</h3>
<ul>
<li>Dividend Yield: 4.64%</li>
<li>Raymond James analyst Jonathan Hughes maintained an Outperform rating and cut the price target from $53 to $50 on Aug. 31, 2023. This analyst has an accuracy rate of 64%.</li>
<li>Wells Fargo analyst Todd Stender maintained an Overweight rating and cut the price target from $50 to $46 on Aug. 7, 2023. This analyst has an accuracy rate of 74%.</li>
<li>Recent News: CubeSmart posted upbeat sales results for the latest quarter.</li>
</ul>
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Long Ideas

Dividends

Price Target

Small Cap

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CUBE

These 3 Real Estate Stocks With Over 4% Dividend Yields Are Recommended By Wall Street's Most Accurate Analysts

Wall Street reporters have a phrase to describe stocks that rise when another stock of the same sector reports excellent news. They write, "Other stocks rose in sympathy." These so-called sympathy stocks don't have any of their own news to propel them higher, but investors surmise that if one stock of a sector reports good news, others of the same ilk may soon follow suit. The result is investors buying shares and pushing the sympathy stock prices higher.
This is especially true when a company is acquired by or merges with another company. Merger fever takes over, and investors then speculate on which companies from the same sector may be next to be purchased at a price well above present levels.
An entire real estate investment trust (REIT) subsector recently rose in sympathy when one of its lower-priced companies was acquired at a substantial premium.
Hersha Hospitality Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HT#NYSE">HT</a>) is a Harrisburg, Pennsylvania-based hotel REIT that owns 25 luxury and lifestyle hotels with 3,811 rooms in larger cities across the U.S.&nbsp;&nbsp;
On Aug. 28, Hersha Hospitality Trust announced it will merge with KSL Capital Partners. Under the terms of the agreement, KSL Capital Partners will acquire all outstanding common shares of Hersha Hospitality for $10 per share in an all-cash transaction of $1.4 billion. This is a 60% premium over Hersha Hospitality's closing price on Aug. 25.
KSL Capital Partners is a private equity fund that invests in the hospitality, recreation, real estate and travel service sectors. It was founded and originally called KSL Recreation in 1992. KSL Capital Partners was formed in 2005, and since then it has invested in over 150 businesses across North America, Europe, Asia and Australia.
Upon announcing the merger, Hersha Hospitality's Executive Chairman Jay H. Shah said, "This transaction provides our shareholders with immediate and certain value at a substantial premium to our public valuation."
Hersha Hospitality stock stormed up 55.89% on the news and closed at $9.79, with most of that gain coming right at the opening bell.  The news triggered buying on several other hotel REITs as well. At the end of the day, five of the best 12 REIT performances were hotel REITs. Take a look at three of them.
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Braemar Hotels &amp; Resorts Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHR#NYSE">BHR</a>) is a Dallas-based REIT that invests in luxury hotels and resorts across the U.S. and in Puerto Rico. Braemar Hotels &amp; Resorts now has investments in 16 properties with 4,184 rooms.
On Aug. 2, Braemar Hotels &amp; Resorts reported mixed second-quarter operating results. Funds from operations (FFO) of $0.20 per share was in line with estimates, but 45.95% below FFO of $0.37 per share in the second quarter of 2022. However, revenue of $186.71 million beat the consensus estimate of $173.87 million and was a 6.76% increase over revenue of $174.89 million in the second quarter of 2022.
On Aug. 14, B. Riley Securities analyst Bryan Maher downgraded Braemar Hotels &amp; Resorts from Buy to Neutral and lowered the price target from $7 to $3.50.&nbsp;
"As it relates to Braemar's luxury resort hotels, we have been writing about RevPAR (revenue per available room) weakening for several quarters," Maher noted.&nbsp;
Following the news on Hersha Hospitality, Braemar Hotels soared 15.57% in one day.
Ashford Hospitality Trust Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AHT#NYSE">AHT</a>) is another Dallas-based hotel REIT that owns 100 hotels with 22,316 rooms across 26 states. It focuses on upscale full-service and select-service hotels. Ashford Hospitality Trust is externally advised by Ashford Inc. (NYSEAMERICAN: AINC).
Ashford Hospitality was one of the worst-performing REITs throughout 2022, with a total return of negative 56.73%. Year to date it has continued to perform poorly, with a total return of negative 30.72%.
On July 10, Ashford Hospitality announced it will surrender ownership of 19 hotels across the U.S. as a means to halt worsening debt. Ashford Hospitality ceased making mortgage payments on two hotels in Newark, New Jersey, one in Oakland, California, and one in Walnut Creek, California. Ashford Hospitality estimates it will save $700 million by not paying these mortgages and then paying down debt on other mortgages.&nbsp;
But on Aug. 2, Ashford Hospitality announced second-quarter FFO of $0.78, beating the consensus estimates by $0.31. Revenue of $375.75 million also beat the Street estimates by $5.72 million and was 7.9% higher than revenue during the second quarter of 2022. RevPAR for all hotels was up 6.7% from the second quarter of 2022 to $144.25.
Following Hersha Hospitality's announcement, Ashford Hospitality was up 10.29% on the day.
Chatham Lodging Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLDT#NYSE">CLDT</a>) is a West Palm Beach, Florida-based hotel REIT that owns 39 upscale extended-stay hotels with 5,914 rooms across 16 states and Washington, D.C. Its portfolio includes Residence Inn by Marriott and Homewood Suites by Hilton.
On Aug. 2, Chatham Lodging Trust reported its second-quarter operating results. Adjusted funds from operations (AFFO) of $0.43 per share beat the estimate of $0.39 by 10.26% and was above AFFO of $0.41 per share from the second quarter of 2022. Revenue of $84.48 million beat the estimate of $84.06 and was 3.32% above revenue of $81.76 million in the second quarter of 2022. RevPar has improved from $157 to $189 over the past seven months.
Despite a year-to-date loss of over 13%, on the heels of Hersha Hospitality's announcement, Chatham Lodging rose 6.19% on the day.
Other Hotel REITs with notable sympathy price changes were Summit Hotel Properties Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INN#NYSE">INN</a>), up 6.07%, Xenia Hotels &amp; Resorts Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHR#NYSE">XHR</a>), up 5.75%, and Diamondrock Hospitality Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>), up 5.2%.
Hotel REITs have struggled since early 2020 when COVID-19 first hit the U.S. The growing popularity of Airbnb, Vrbo and other short-term rental properties have put a dent in hotel REIT earnings, especially in a post-COVID era of consumer wariness.
On July 20, analyst Tylor Batory of Oppenheimer &amp; Co. Inc. downgraded Chatham Lodging Trust, along with Braemar Hotels &amp; Resorts and Hersha Hospitality Trust, from Outperform to Perform.
But apparently, merger fever has taken over with the acquisition of Hersha Hospitality, and investors seem to be disregarding the analysts and betting that other hotel REITs are grossly undervalued and primed for lucrative takeovers as well. If nothing else, those stocks clearly outperformed for one day.
Weekly REIT Report: REITs are one of the most misunderstood investment options, making it difficult for investors to spot incredible opportunities until it's too late. Benzinga's in-house real estate research team has been working hard to identify the greatest opportunities in today's market, which you can gain access to for free by signing up for the <a href="https://www.benzinga.com/money/reit-newsletter">Weekly REIT Report.</a>

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CLDT

Equity Fund Buys Hersha Hospitality Trust: Hotel REITs Go Wild

Summit Hotel Properties Sees FY23 Adj FFO $0.86-$0.94

Summit Hotel Properties (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INN#NYSE">INN</a>) reported quarterly earnings of $0.27 per share. This is unchanged from the same period last year. The company reported quarterly sales of $194.49 million which beat the analyst consensus estimate of $192.46 million by 1.06 percent. This is a 6.14 percent increase over sales of $183.25 million the same period last year.

Summit Hotel Properties Q2 EPS $0.27, Same YoY, Sales $194.49M Beat $192.46M Estimate

Summit Hotel Properties Q1 FFO $0.22 Up From $0.17 YoY, Sales $182.38M Beat $179.57M Estimate

Investors looking for an edge with stocks that have <a href="https://www.benzinga.com/calendars/earnings">upcoming earnings reports</a> may want to consider those companies that have recently increased their quarterly dividend payout.
A May 2020 study done by Ham, Kaplan and Leary in the Journal of Financial Economics reviewed several previous studies to determine whether companies that raise their quarterly dividends are signaling improved earnings reports in the future.
&ldquo;We show evidence that dividend changes do in fact convey information about future economic income that persists for at least three years, suggesting that dividend increasing (decreasing) firms move to a new and higher (lower) level of permanent earnings,&rdquo; according to the study.
This makes sense because it would be unlikely that a company with diminishing earnings would be able to pay out more in dividends without depleting its cash flow and severely enlarging its payout ratio. But a company with improving earnings could pay out more and still have sufficient capital for debt repayment or stock buybacks.
When a company announces a dividend increase just prior to its earnings announcement, it&rsquo;s a possible tip-off to Wall Street of improving metrics, and it could be about to beat analyst estimates and perhaps its year-over-year results. It could also mean the company will announce an increase in its forward guidance. Positive announcements like these frequently send share prices higher.
Within the last few weeks, four real estate investment trusts (<a href="https://www.benzinga.com/real-estate/reit">REITs</a>) have raised their quarterly dividends. One of them, Tanger Factory Outlet Centers Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/skt#NYSE">SKT</a>), increased its quarterly dividend by 11.3% on April 11 from $0.88 to $0.98 per share.
On April 27, after the market closed, Tanger reported first-quarter operating results. Not only did Tanger beat the analysts&rsquo; estimates on <a href="https://www.benzinga.com/money/understanding-funds-from-operations-ffo-for-reits">funds from operations</a> (FFO) and revenue, but it also raised its full-year 2023 guidance for core FFO per share. The next morning, Tanger shares shot higher and finished the day up 6.92%.
Don&#39;t miss:&nbsp;<a href="https://www.benzinga.com/real-estate/reit/23/04/32014108/while-reits-are-struggling-private-market-real-estate-pulls-in-huge-returns">While REITs Are Struggling, Private Market Real Estate Pulls In Huge Returns</a>
That opportunity may have passed, but there are more still out there. Take a look at three other REITs that have recently raised their dividends and have earning reports this week.
Agree Realty Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/adc#NYSE">ADC</a>) is a net-lease REIT that focuses on retail properties. Its portfolio includes 1,839 properties totaling 38 million square feet.
On April 7, Agree Realty announced an increase in its monthly dividend from $0.24 to $0.243 per share. That raises the annual dividend from $2.88 to $2.916, with a yield of 4.28% and an FFO payout ratio of 73.7%.
Agree Realty will announce its first-quarter operating results after the market closes on May 4.
Summit Hotel Properties Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/inn#NYSE">INN</a>) is an Austin, Texas-based hotel REIT with 103 properties in 24 states.
On April 27, Summit Hotel announced it will raise its quarterly dividend by 50%, from $0.04 to $0.06 per share. That boosted the annual dividend from $0.16 to $0.24, for a yield of 3.74%. With forward FFO of $0.98, that creates an annual FFO payout ratio of 24.2%.
Summit Hotel Properties will announce its first-quarter operating results after the market closes on May 3.
Community Healthcare Trust Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chct#NYSE">CHCT</a>) is a Franklin, Tennessee-based healthcare REIT that owns 161 properties across 34 states. Its diverse portfolio includes medical office buildings, specialty centers, behavioral facilities and inpatient rehabilitation centers.
On April 28, Community Healthcare Trust announced an increase in its quarterly dividend from $0.448 to $0.45 per share, payable on May 26 to shareholders of record on May 12. The annual dividend of $1.80 yields 5%, and the FFO payout ratio is now 75.9%.
Community Healthcare Trust will announce its first quarter operating results after the market closes on May 2.
Although there is evidence to suggest that dividend increases portend improvements in earnings, investors should perform due diligence on all REITs they&rsquo;re considering for purchase, and not rely on just one factor, such as an increase in the dividend.
Check out: <a href="https://www.benzinga.com/alternative-investments/listing/alpine-note-series-e23">Like Dividends? You&#39;ll Love These High-Yield Private Market Investments</a>

CHCT

3 REITS With Upcoming Earnings Reports That Just Raised Dividends

Press Releases

SUMMIT HOTEL PROPERTIES DECLARES SECOND QUARTER 2024 DIVIDENDS

SUMMIT HOTEL PROPERTIES REPORTS SECOND QUARTER 2024 RESULTS

SUMMIT HOTEL PROPERTIES PUBLISHES 2024 CORPORATE RESPONSIBILITY REPORT

SUMMIT HOTEL PROPERTIES ANNOUNCES THIRD QUARTER 2024 EARNINGS RELEASE DATE

SUMMIT HOTEL PROPERTIES DECLARES THIRD QUARTER 2024 DIVIDENDS

SUMMIT HOTEL PROPERTIES REPORTS THIRD QUARTER 2024 RESULTS

Summit Hotel Properties Announces Pending Acquisition of Two-Hotel Portfolio for $96 Million Through GIC Joint Venture

SUMMIT HOTEL PROPERTIES ANNOUNCES FOURTH QUARTER AND FULL YEAR 2024 EARNINGS RELEASE DATE

SUMMIT HOTEL PROPERTIES DECLARES FOURTH QUARTER 2024 DIVIDENDS

Summit Hotel Properties Announces 2025 Annual Meeting of Stockholders

Ashford Hospitality Trust Inc Common Stock

Ashford Hospitality Trust

Apple Hospitality REIT, Inc. Common Shares

Apple Hospitality REIT

Braemar Hotels & Resorts Inc. Common Stock

Braemar Hotels & Resorts

Chatham Lodging Trust (REIT) Common Shares of Beneficial Interest

Chatham Lodging

Diamondrock Hospitality Company Common Stock

Diamondrock Hospitality

Host Hotels & Resorts, Inc. - Common Stock

Host Hotels & Resorts

InnSuites Hospitality Trust Shares of Beneficial Interest

InnSuites Hospitality

Pebblebrook Hotel Trust Common Shares of Beneficial Interest

Pebblebrook Hotel

Park Hotels & Resorts

Ryman Hospitality Properties, Inc. (REIT)

Ryman Hospitality Props

RLJ Lodging Trust Common Shares of Beneficial Interest $0.01 par value

RLJ Lodging

Sunstone Hotel Investors, Inc. Sunstone Hotel Investors, Inc. Common Shares

Sunstone Hotel Invts

Sotherly Hotels

Service Properties Trust - Shares of Beneficial Interest

Service Properties Trust

Xenia Hotels & Resorts, Inc. Common Stock

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