PK - Summit Hotel: Investors May Want To Stay On The Sideline As The Economy Is Heading For A Slowdown
Investment Thesis
Summit Hotel Properties (INN) saw a modest growth in its revenue per available room in Q2 2019. The REIT's recent joint venture announcement with Singapore's sovereign wealth fund will allow it to become opportunistic to acquire good quality properties in the future. It also has several initiatives to grow its revenue. The company offers a 6.7%-yielding dividend with a sustainable payout ratio. However, the U.S. economy appears to be heading for a slowdown. Therefore, it may be challenging to grow its business in this challenging environment. We think investors may want