SUMMIT HOTEL PROPERTIES DECLARES SECOND QUARTER 2024 DIVIDENDS

Rhea-AI Summary

Summit Hotel Properties (NYSE: INN) has declared dividends for Q2 2024. The company announced a cash dividend of $0.08 per share of common stock and per common unit of partnership interest in Summit Hotel OP, LP. This represents an annualized dividend yield of 5.4% based on the July 24, 2024 closing price.

Additionally, the company declared dividends for its preferred stocks: $0.390625 per share for the 6.25% Series E and $0.3671875 per share for the 5.875% Series F Cumulative Redeemable Preferred Stock. The operating partnership's unregistered 5.25% Series Z Cumulative Perpetual Preferred Units will receive a distribution of $0.328125 per unit.

All dividends are payable on August 30, 2024, to holders of record as of August 16, 2024.

Positive

• Declared quarterly cash dividend of $0.08 per share for common stock
• Annualized dividend yield of 5.4% for common stock
• Maintained dividend payments for preferred stocks and units

Negative

• None.

Insights

Financial Analyst

Summit Hotel Properties' dividend declaration for Q2 2024 offers a mixed bag for investors. The $0.08 per share common stock dividend translates to an 5.4% annualized yield, which is relatively attractive in the current market. However, it's important to note that dividend yield alone doesn't paint the full picture of a company's financial health or stock performance.

The company's decision to maintain dividends across its common stock, preferred stocks and partnership units suggests stability in its cash flow. This is particularly noteworthy in the hospitality sector, which has faced significant challenges in recent years. The consistency in dividend payments could be seen as a positive signal about the company's financial position and management's confidence in future performance.

However, investors should be cautious. The hotel industry is cyclical and sensitive to economic fluctuations. While the dividend yield is attractive, it's essential to consider the sustainability of these payouts in light of the company's earnings, cash flow and debt levels. Without access to the full financial statements, it's challenging to determine if the current dividend rate is sustainable in the long term.

In summary, while the dividend announcement is generally positive, prudent investors should look beyond this single data point and consider the broader financial picture and industry trends before making investment decisions.

AUSTIN, Texas, July 25, 2024 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company"), announced today that its Board of Directors has authorized, and the Company has declared, a cash dividend for the second quarter ended June 30, 2024, of $0.08 per share of common stock of the Company and per common unit of limited partnership interest in Summit Hotel OP, LP, the Company's operating partnership. The Company's second quarter common dividend represents an annualized dividend yield of 5.4 percent based on the closing price of shares of the common stock on July 24, 2024.

The Board of Directors has also authorized, and the Company has declared, a cash dividend of $0.390625 per share of the Company's 6.25% Series E Cumulative Redeemable Preferred Stock for the dividend period ending on August 31, 2024, and a cash dividend of $0.3671875 per share of the Company's 5.875% Series F Cumulative Redeemable Preferred Stock for the dividend period ending on August 31, 2024.

Additionally, the Board of Directors has authorized a cash distribution, and the Company has declared on behalf of the operating partnership, distributions of $0.328125 per unit pertaining to the operating partnership's unregistered 5.25% Series Z Cumulative Perpetual Preferred Units for the distribution period ending on August 31, 2024.

The dividends are payable on August 30, 2024, to holders of record as of August 16, 2024.

About Summit Hotel Properties

Summit Hotel Properties, Inc. is a publicly-traded real estate investment trust focused on owning premium-branded lodging properties with efficient operating models primarily in the Upscale segment of the lodging industry. As of July 25, 2024, the Company's portfolio consisted of 96 assets, 54 of which are wholly owned, with a total of 14,256 guestrooms located in 24 states.

For additional information, please visit the Company's website, www.shpreit.com, and follow the Company on X, at @SummitHotel_INN.

Forward Looking Statements

This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "seek," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," "forecast," "continue," "plan," "likely," "would" or other similar words or expressions. These forward-looking statements relate to the payment of dividends. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections or other forward-looking information. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company's control, which could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the state of the U.S. economy, supply and demand in the hotel industry and other factors as are described in greater detail in the Company's filings with the Securities and Exchange Commission, including, without limitation, the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE SUMMIT HOTEL PROPERTIES, INC.

FAQ

What is Summit Hotel Properties' (INN) dividend for Q2 2024?

Summit Hotel Properties (INN) declared a cash dividend of $0.08 per share of common stock for Q2 2024, representing an annualized dividend yield of 5.4%.

When will Summit Hotel Properties (INN) pay its Q2 2024 dividends?

Summit Hotel Properties (INN) will pay its Q2 2024 dividends on August 30, 2024, to holders of record as of August 16, 2024.

What are the dividend amounts for Summit Hotel Properties' (INN) preferred stocks?

Summit Hotel Properties (INN) declared dividends of $0.390625 per share for its 6.25% Series E and $0.3671875 per share for its 5.875% Series F Cumulative Redeemable Preferred Stock.

What is the distribution amount for Summit Hotel Properties' (INN) Series Z Preferred Units?

Summit Hotel Properties (INN) declared a distribution of $0.328125 per unit for its operating partnership's unregistered 5.25% Series Z Cumulative Perpetual Preferred Units.