Bear of the Day: Summit Hotel Properties (INN)

Summit Hotel Properties (INN) is a real estate investment trust (REIT) focused on premium-branded lodging facilities such as Hyatt Place.INN’s bottom line has been trending in the wrong direction as it deals with a shifting business and broader travel landscape. Plus, Summit Hotel Properties and the broader hotel landscape have been shaken up by the likes of Airbnb, VRBO, and vacation rental companies.Summit Hotel Properties is down over 50% in the past decade, including a 17% YTD drop as its bottom-line outlook continues to fade.Investors Might Want to Stay Away from INN Stock  Summit Hotel Properties is a hotel-focused REIT with a portfolio that includes 97 assets, 53 of which are wholly owned, across 25 states, as of February 24, 2025. In its own words, Summit Hotel Properties is focused “on owning premium-branded lodging facilities with efficient operating models primarily in the upscale segment of the lodging industry.”Image Source: Zacks Investment ResearchINN’s portfolio of brands includes hotels under the Hilton, Hyatt, and Marriott umbrellas, as well as others. These hotels range from Embassy Suites and Residence Inn to Courtyard, Hyatt Place, and other well-known hotels.The company’s revenue climbed substantially over the past 10 years. Unfortunately, its bottom line has faded. It is worth noting that instead of earnings, REITs report funds from operations or FFO, but investors can view them as essentially the same.Summit Hotel Properties has seen its adjusted FFO outlook sink over the last few years, including another significant stretch of downward revisions since its Q2 earnings release in early August.Image Source: Zacks Investment Research Its Q3 consensus estimate is down 33% since its release, with its estimates for FY25 down 11% and FY26’s 19% worse. This backdrop lands INN stock a Zacks Rank #5 (Strong Sell).Some investors will appreciate INN’s 5.9% dividend yield. But the stock has underperformed the market significantly, and the benchmark risk-free rate hovers at 4.17%. Therefore, investors might want to look elsewhere for now. #1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Summit Hotel Properties, Inc. (INN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks