Summit Hotel Properties stock hits 52-week low at $5.48

In a challenging year for the hospitality sector, Summit Hotel Properties Inc (NYSE:INN). has seen its stock price touch a 52-week low, dipping to $5.48. With a market capitalization of $604 million and an attractive dividend yield of 5.64%, the company trades at just 0.68 times book value. According to InvestingPro analysis, the stock shows multiple signs of being undervalued, with analysts setting price targets between $7 and $10. The company, which specializes in owning premium-branded hotels, has faced headwinds that have seen its stock underperform within the industry, marking a significant 1-year change with a decline of 12.84%. With a beta of 2.04, the stock has shown higher volatility than the broader market. This downturn reflects broader market trends and specific challenges faced by the hotel operator, as investors weigh the potential for recovery against ongoing economic uncertainties. For deeper insights into Summit Hotel Properties’ valuation and growth prospects, including 10+ additional ProTips and comprehensive financial analysis, visit InvestingPro.

In other recent news, Summit Hotel Properties reported a better-than-expected financial performance for the fourth quarter of 2024. The company achieved an earnings per share (EPS) of $0.01, surpassing the anticipated loss of $0.08. Additionally, Summit Hotel Properties reported revenue of $172.93 million, slightly exceeding the forecasted $171.04 million. Despite these positive results, the company’s stock price experienced a decline post-announcement. Analysts have noted the company’s effective cost management, with adjusted funds from operations (FFO) increasing nearly 6% year-over-year to $119.2 million. Summit Hotel Properties anticipates continued growth in 2025, with projected RevPAR growth of 1-3% and an adjusted EBITDA range of $184 million to $198 million. The company has also been active in acquisitions, recently purchasing the Hampton Inn Boston Logan Airport and Hilton Garden Inn Tysons Corner for $96 million through its joint venture with GIC. Looking forward, the company expects continued strength in urban and suburban markets and is optimistic about the recovery of business transient travel.

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