Terms

Series

Series F Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

5.875%

Rate Type

Fixed

Annual Dividend

$1.47

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

August 12, 2026

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness, Any Class Or Series Of Capital Stock Expressly Designated As Ranking Senior To Series F Preferred Stock As To Distribution Rights And Liquidation Rights; Pari Passu With: Series D Cumulative Redeemable Preferred Stock (6.45%), Series E Cumulative Redeemable Preferred Stock (6.25%), Parity Stock (Any Class Or Series Not Expressly Designated As Senior Or Junior); Senior To: Common Stock, Junior Stock (Any Class Or Series Designated As Ranking Junior To Series F Preferred Stock As To Distribution Rights And Liquidation Rights)

Regulatory (Basel III) Call

No

Tax Classification

Ordinary

Shares Offered

4,000,000

Prospectus Summary

Summit Hotel Properties, Inc. is offering 4,000,000 shares of its 5.875% Series F Cumulative Redeemable Preferred Stock with a $25.00 liquidation preference per share. The shares are non-convertible under ordinary circumstances but become convertible into common stock upon a Change of Control (defined as loss of NYSE/Nasdaq listing following a >50% voting acquisition). Holders receive cumulative quarterly dividends of $0.3671875 per share (5.875% annually) on a fixed basis payable February 28, May 31, August 31, and November 30. The issuer may redeem shares at $25.00 per share starting August 12, 2026, and may also redeem within 120 days of a Change of Control. This is a perpetual security with no maturity date or mandatory redemption. The Series F Preferred Stock ranks senior to all common stock and any junior preferred classes, pari passu with existing Series D (6.45%) and Series E (6.25%) preferred stock, and junior to all of the company's existing and future indebtedness. As a holding company structure, Summit Hotel is a self-managed REIT that owns hotels indirectly through Summit Hotel OP, LP, its operating partnership, which holds substantially all assets. The preferred stock is senior to the common equity and other junior securities but structurally subordinate to all debt obligations incurred at both the holding company and operating partnership levels. A Change of Control conversion right provides some protection in acquisition scenarios where the common stock loses its exchange listing, allowing preferredholders to convert at the lesser of a formula (liquidation preference plus accrued dividends divided by common stock price) or a 5.8275-share cap. At the $25.00 offering price, the 5.875% coupon yields 5.875% per annum ($1.46875 per share annually, or ~$0.367 quarterly). Dividends are cumulative—accrued amounts compound and must be paid in full before any dividends or redemptions on junior or parity stock may occur, providing downside protection if the company faces liquidity stress. As distributions from a REIT, the ordinary quarterly dividends are not expected to qualify for the preferential 15%/20% qualified dividend income (QDI) rate for individual investors; they are taxable as ordinary income to individuals and do not qualify for the corporate dividend-received deduction (DRD). The record date is the first day of the dividend month (or a date up to 90 days prior, at the board's discretion, but no fewer than 10 days before payment). Dividend payments are halted and transferred to a charitable trust if an individual holder exceeds the 9.8% beneficial ownership threshold designed to preserve REIT status; this ownership restriction is the primary structural dividend blocker.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

Issuer cannot declare or pay dividends on common stock or parity preferred stock, and cannot redeem junior stock or parity stock, unless all cumulative dividends on Series F Preferred Stock have been declared and paid (or set aside) for all past periods. Accrued but unpaid dividends on Series F Preferred Stock do not bear interest. If dividends are declared on junior/parity stock while Series F dividends are in arrears, amounts are allocated pro rata based on accrual.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 52 (Average)