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INN (Summit Hotel Properties) Degree of Operating Leverage : -33.33 (As of Mar. 2025)


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What is Summit Hotel Properties Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Summit Hotel Properties's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -33.33. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Summit Hotel Properties's Degree of Operating Leverage or its related term are showing as below:

INN's Degree of Operating Leverage is ranked better than
91.14% of 734 companies
in the REITs industry
Industry Median: 1.205 vs INN: -33.33

Summit Hotel Properties Degree of Operating Leverage Historical Data

The historical data trend for Summit Hotel Properties's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Summit Hotel Properties Degree of Operating Leverage Chart

Summit Hotel Properties Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.21 -1.42 -4.57 -1.42 -141.40

Summit Hotel Properties Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -6.06 32.23 81.53 -141.40 -33.33

Competitive Comparison of Summit Hotel Properties's Degree of Operating Leverage

For the REIT - Hotel & Motel subindustry, Summit Hotel Properties's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Summit Hotel Properties's Degree of Operating Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Summit Hotel Properties's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Summit Hotel Properties's Degree of Operating Leverage falls into.


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Summit Hotel Properties Degree of Operating Leverage Calculation

Summit Hotel Properties's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 109.481 (Mar. 2025) / 67.645 (Mar. 2024) - 1 )/( 728.119 (Mar. 2025) / 741.886 (Mar. 2024) - 1 )
=0.6185/-0.0186
=-33.33***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Summit Hotel Properties  (NYSE:INN) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Summit Hotel Properties Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Summit Hotel Properties's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Summit Hotel Properties Business Description

Traded in Other Exchanges
Address
13215 Bee Cave Parkway, Suite B-300, Austin, TX, USA, 78738
Summit Hotel Properties Inc is a U.S.-based hotel investment company focusing on select-service hotels in the upscale and upper-midscale properties in the U.S. Substantially all of Summit's assets are held and operated by its Operating Partnership, Summit Hotel OP, LP, in which the company holds general and limited partnership interests. The firm has one segment in activities related to investing in real estate. Summit's revenue streams include Room and Other hotel operations revenue. Room comprises the majority of total revenues. The firm's hotels are located in various markets, such as corporate offices, retail centers, airports, state capitols, convention centers, and leisure attractions. Summit's hotels operate under brands, including Marriott, Hilton, Hyatt, and Holiday Inn.
Executives
Thomas W. Storey director 2701 S. MINNESOTA AVENUE, SUITE 6, SIOUX FALLS SD 57105
Bright Force Investment, Llc 10 percent owner /C/O NEWCRESTIMAGE HOLDINGS, LLC, 1785 STATE HIGHWAY 26, SUITE 400, GRAPEVINE TX 76051
Hope S Taitz director C/O ATHENE HOLDING LTD., WASHINGTON HOUSE, 16 CHURCH STREET, HAMILTON D0 HM 11
Jonathan P Stanner officer: EVP & Chief Financial Officer 12600 HILL COUNTRY BLVD, SUITE R-100, AUSTIN TX 78738
Mehulkumar Bhikhubhai Patel director 2117 KIMBALL HILL CT, SOUTHLAKE TX 76092
Newcrestimage Holdings, Llc 10 percent owner 1785 STATE HIGHWAY 26, SUITE 400, GRAPEVINE TX 76051
Daniel P Hansen director, officer: President and CEO 4808 FLORENCE ST, BELLAIRE TX 77401
Craig J Aniszewski officer: EVP and COO 119 STORMY POINTE LN, MOORESVILLE NC 28117
William Higgins Conkling officer: EVP & Chief Financial Officer 13215 BEE CAVE PARKWAY, SUITE B-300, AUSTIN TX 78738
Amina Belouizdad director 13215 BEE CAVE PARKWAY, SUITE B-300, AUSTIN TX 78783
Paul Ruiz officer: SVP & Chief Accounting Officer 3200 WILCREST DRIVE SUITE 370, HOUSTON TX 77042
Jeffrey W Jones director P O BOX 7, VAIL CO 81658
Kenneth J Kay director 3355 LAS VEGAS BOULEVARD SOUTH, LAS VEGAS NV 89109
Greg A Dowell officer: Executive VP & CFO 805 LAS CIMAS PARKWAY, SUITE 400, AUSTIN TX 78746
Wayne Wielgus director 10750 COLUMBIA PIKE, SILVER SPRING MD 20901