Summit Hotel beats Q3 expectations

Nov 4, 2014
Austin Business Journal

Summit Hotel Properties Inc. beat Wall Street expectations in a number of key metrics during the third quarter, including revenue and funds from operations, according to documents filed with the SEC Monday


The Austin-based, hotel-focused real estate investment trust that owns about 90 hotels posted total funds from operations worth 30 cents per share, four cents better than investors had estimated. Total revenue for the quarter came in at $109.3 million, besting the Wall Street estimate of $102.9 million. Summit stock was trading up less than 1 percent, to $11.74 per share, late in the day Monday from its previous close of $11.64 per share


Funds from operations, a metric that tracks amortization, depreciation and net income, are closely watched in the world of real estate investment trusts


In all, the company's funds from operations rose by 44 percent in the third quarter compared to the same time last year


Net income for the company came in at $4.1 million for the quarter, or 5 cents per share, compared to a net loss of $4.8 million, or 7 cents per share, in the third quarter of 2013


The company also said that it is maintaining a positive outlook on the overall economic picture that could boost its bottom line by increasing demand for hotel rooms



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