Summit Hotel Stock Plunges 13.76% on Earnings Miss

On May 1, 2025, Summit Hotel's stock price plummeted by 13.76% in pre-market trading, marking a significant downturn for the company.

Summit Hotel Properties recently reported its first-quarter earnings, revealing a net loss attributable to common stockholders of $4,684,000 for Q1 2025. This loss is more than double the $2,116,000 loss reported in the same period last year, indicating a challenging quarter for the company.

Despite the net loss, Summit Hotel Properties delivered positive surprises in terms of funds from operations (FFO) and revenue. The company reported a 4.76% surprise in FFO and a 0.80% surprise in revenue for the quarter ended March 2025. However, the company missed its earnings per share (EPS) estimate by $0.02, reporting an EPS of ($0.04) compared to the analyst estimate of ($0.02).

Summit Hotel Properties also declared a quarterly cash dividend of $0.08 per share on its common stock and per common unit of limited partnership interest. This dividend declaration is a positive sign for investors, as it indicates the company's commitment to returning value to shareholders despite the challenging quarter.