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Summit Hotel Properties Inc T.INN.UN


Primary Symbol: INN Alternate Symbol(s):  INN.PR.F

Summit Hotel Properties, Inc. is a real estate investment trust. The Company is focused on owning premium-branded lodging properties with operating models primarily in the upscale segment of the lodging industry. Its portfolio consists of approximately 96 assets, 54 of which are wholly owned, with a total of 14,256 guestrooms located in 24 states. Its properties are located in markets with multiple demand generators, such as corporate offices and headquarters, retail centers, airports, state capitols, convention centers, universities, and leisure attractions. Its guestrooms operate under franchise brands owned by Marriott International, Inc. (Marriott), Hilton Worldwide (Hilton), Hyatt Hotels Corporation (Hyatt), and InterContinental Hotels Group (IHG). It holds both general and limited partnership interests in Summit Hotel OP, LP (the Operating Partnership). Substantially, all of its assets are held by, and all of its operations are conducted through, the Operating Partnership.


NYSE:INN - Post by User

Bullboard Posts
Post by 160kon Dec 28, 2011 5:46pm
282 Views
Post# 19355372

RE: the cut to .40cents etc.

RE: the cut to .40cents etc.

For the bullboarder who raised this issue, did you listen closely to what Management said about this during the course of the teleconference.?  Management stressed the need to use the money to grow organically by investing in its own properties by upgrading and renovating a large percentage of them.  They talked about a capex for this of about $50million+ and the money from the reduced distribution could be used to provide much needed funds for this major rebranding and renovation program.  It has already paid off in the two major hotels just recently completed with their upgradings and renovations etc.  The cut is also in preparation for the time when the Trust becomes taxable, although Innvest does have tax losses it can use for awhile, sitting in reserve.  All of this takes the uncertainty out of the situation when Innvest becomes a pure taxable Trust.  We all know what to expect now.  I see no further cuts in the cards given that Temple pays more now and anything less than the .0333cents would make Innvest appear to be in financial trouble, which it is not.  In fact, analysts who participated in the teleconference expected a much deeper cut but the consensus is that the .0333cents is very sustainable.

Bullboard Posts