Summit Hotel Properties

Summit Hotel Properties is a hotel REIT servicing the upscale traveler. They've been paying the same dividend since 2011 but recently started raising the dividend. When that happens management is telling the investing community that the future looks bright. As a dividend growth investor, I tend to take notice of these things. Especially with REITs because REITs usually don't do that sort of thing. 
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Summit Hotel Properties is a publicly-traded real estate investment trust organized to continue and expand the existing hotel investment business of their predecessor, Summit Hotel Properties, LLC, a leading U.S. hotel owner. The company focuses primarily on owning premium-branded, select-service hotels in the Upscale segment of the U.S. lodging industry. The company's current portfolio consists of 80 hotels with a total of 10,751 guestrooms located in 23 states. Their hotels are located in markets in which they have extensive experience and which exhibits multiple demand generators, such as business and corporate headquarters, retail centers, airports, and tourist attractions. 
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Based on the total number of guestrooms, approximately 87% of the company's portfolio is positioned in the top 50 metropolitan statistical areas, or MSAs, and approximately 95% is located within the top 100 MSAs. Based on total number of guestrooms, approximately 98% of the hotels operate under premium franchise brands owned by Marriott International, Inc. (Courtyard by Marriott, Residence Inn by Marriott, Marriott, SpringHill Suites by Marriott, and Fairfield Inn & Suites by Marriott), Hilton Worldwide (DoubleTree, Hampton Inn, Hampton Inn & Suites, Homewood Suites, and Hilton Garden Inn), InterContinental Hotels Group (Holiday Inn, Holiday Inn Express, Holiday Inn Express & Suites, Hotel Indigo, and Staybridge Suites), and an affiliate of Hyatt Hotels Corporation (Hyatt Place and Hyatt House).
​(Summary) (Company) (Chart)

3 November 2016
Price $12.57
1yr Target $15.00
Analysts 9
Dividend $0.65
Payout Ratio 37.57%

1yr Cap Gain 19.33%
Yield 5.17%
1yr Tot Return 24.50%

P/E 7.26
PEG 1.15
Beta 0.91
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EPS (ttm) $1.73
EPS next yr $0.52
Forward P/E 24.27
EPS next 5yr 6.30%
1yr Price Support $3.27

Market Cap $1.12 Bil
Revenues $480.41 Mil
Earnings $151.30 Mil
Profit Margin 31.49%

Quick Ratio ---
Current Ratio ---
Debt/Equity 0.64

1yr RevGR 14.86%
3yr RevGR 41.54%
5yr RevGR 49.82%

1yr EarnGR 2480.00%
3yr EarnGR ---
5yr EarnGR ---

1yr DivGR 1.07%
3yr DivGR 1.44%
5yr DivGR ---

ROA 9.40%
ROE 17.40%

Summit Hotel Properties (INN) declares a quarterly dividend of $0.1625/share, which represents a 22.6% increase from the prior dividend of $0.1325. The forward yield is now above 5.0%, and payable on Nov. 30 for shareholders of record Nov. 16. Ex-div is Nov. 14.

​My Approach to Summit Hotel Properties.

I recently started a position in this company for a couple of reasons. First of all, I like REITS and the dividends they seem to always be throwing off. Dividends are a high priority for me and REITs seem to distribute a lot of them. Summit Hotel Properties is distributing a dividend that yields of over 5%.

Second, although there are a lot of great hotel REITs, this one is conveniently headquartered locally in Austin, Texas. I have a personal affinity to investing in companies that operate out of Texas.

Finally I like to invest in REITs because I like the high dividend for reinvesting back into addition shares of the company as well as the potential for income in the future when I need it. For me and for these reasons, this company works for me, but I also own shares in several other REITs.