Summit Hotel Properties (INN) AI Stock Analysis

• Market Cap: $598.10M
• Dividend Yield: 6.52%
• Average Volume (3M): 723.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: -1.20%
• EPS Growth: -328.23%
• Country: US
• Employees: 85
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.11
• Shares Outstanding: 108,803,024
• 10 Day Avg. Volume: 737,757
• 30 Day Avg. Volume: 723,924
• PEG Ratio: -0.09
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 9.42
• Enterprise Value/Market Cap: 4.02
• Enterprise Value/Revenue: 3.30
• Enterprise Value/Gross Profit: 9.76
• Enterprise Value/Ebitda: 11.37
• 1Y Price Target: $4.50
• Price Target Upside: -16.04% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.28
• Revenue Forecast (FY): $727.16M

• Rating: 63 Neutral
• Price Target: $5.50 ▲(2.61% Upside)

Summit Hotel Properties shows moderate financial performance with stable revenue growth but struggles with profitability. Technical indicators suggest a bearish trend, while valuation is mixed with a negative P/E but high dividend yield. The earnings call highlighted successful asset sales and a positive outlook for 2026, though current challenges persist.

Positive Factors

Cash Generation Ability

Strong cash generation relative to net income indicates effective operational management and provides financial flexibility for future investments.

Proactive Balance Sheet Management

Refinancing reduces interest expenses and extends debt maturities, enhancing financial stability and reducing risk.

Market Share Growth

An increase in RevPAR index indicates improved competitive positioning and ability to capture market demand, supporting long-term revenue growth.

Negative Factors

Decline in Same-Store RevPAR

Declining RevPAR suggests challenges in maintaining pricing power and occupancy, potentially impacting revenue and profitability.

Impact of Government and International Travel Reductions

Reduced demand from key segments can lead to sustained revenue pressure, affecting long-term growth prospects and operational performance.

Macroeconomic Volatility

Macroeconomic volatility and price sensitivity can hinder revenue stability and growth, posing risks to financial performance and strategic planning.

Summit Hotel Properties Business Overview & Revenue Model

Company Description

Summit Hotel Properties, Inc. (INN) is a real estate investment trust (REIT) that focuses on acquiring, owning, and managing premium-branded hotels in the upscale and mid-scale segments. The company primarily operates in the hospitality sector, with a portfolio that includes properties affiliated with well-known brands such as Marriott, Hilton, and Hyatt. Summit Hotel Properties aims to enhance shareholder value through disciplined investment strategies and proactive asset management, providing high-quality accommodations and exceptional guest experiences.

How the Company Makes Money

Summit Hotel Properties generates revenue primarily through the operation of its hotel properties, where it earns income from room rentals, food and beverage services, and ancillary services such as event hosting and parking. The company benefits from its strategic partnerships with major hotel brands, which enhance its market visibility and operational efficiency. Furthermore, Summit Hotel Properties may also engage in property sales and acquisitions, allowing them to capitalize on market opportunities and reinvest in their portfolio. The company's revenue model is bolstered by its focus on high-demand locations and its ability to attract both leisure and business travelers, ensuring a steady stream of occupancy rates and revenue.

Summit Hotel Properties Financial Statement Overview

Summary

Summit Hotel Properties displays a strong financial profile with improvements in profitability and cash flow generation. While revenue growth has been modest, the company has effectively managed costs and leverage, resulting in stable margins and a solid balance sheet.

Income Statement

Summit Hotel Properties shows a stable gross profit margin and has improved its net profit margin significantly from negative in previous years to a positive 5.64% TTM. Revenue growth has been moderate, with a slight decline in recent periods. The EBIT and EBITDA margins are healthy, indicating effective cost management and operational efficiencies.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio of 1.57, suggesting balanced leverage. Return on equity is modest at 4.46% TTM, reflecting improved profitability. The equity ratio stands at 31.78%, indicating a solid equity base to support assets. Overall, the balance sheet reflects stability with manageable debt levels.

Cash Flow

The operating cash flow to net income ratio is strong, demonstrating robust cash generation relative to net income. Free cash flow has improved significantly, showcasing effective capital expenditure management. The free cash flow to net income ratio indicates solid cash conversion, highlighting the company's capability to generate cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	727.44M	731.78M	736.13M	675.70M	361.93M	234.46M
Gross Profit	246.21M	259.64M	258.02M	238.46M	107.45M	27.79M
EBITDA	211.38M	259.22M	212.40M	220.57M	82.21M	5.05M
Net Income	1.58M	43.64M	-9.49M	1.47M	-65.57M	-143.34M
Balance Sheet
Total Assets	2.85B	2.90B	2.94B	3.02B	2.26B	2.23B
Cash, Cash Equivalents and Short-Term Investments	41.13M	40.64M	37.84M	51.26M	64.48M	20.72M
Total Debt	1.45B	1.42B	1.46B	1.48B	1.43B	1.14B
Total Liabilities	1.55B	1.51B	1.54B	1.56B	1.16B	1.18B
Stockholders Equity	875.79M	909.54M	911.20M	959.81M	948.07M	988.74M
Cash Flow
Free Cash Flow	124.90M	77.02M	153.64M	93.15M	66.05M	-42.05M
Operating Cash Flow	152.67M	166.32M	153.64M	169.62M	66.05M	-42.05M
Investing Cash Flow	-144.84M	-71.50M	-101.96M	-290.51M	-74.24M	-30.71M
Financing Cash Flow	-19.47M	-94.23M	-65.72M	85.76M	66.24M	41.83M

Summit Hotel Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INN, the sentiment is Negative. The current price of 5.36 is above the 20-day moving average (MA) of 5.25, above the 50-day MA of 5.28, and above the 200-day MA of 5.03, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 38.90 is Neutral, neither overbought nor oversold. The STOCH value of 27.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INN.

Summit Hotel Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
RLJ	65 Neutral	$1.10B	150.10	1.49%	8.20%	-0.58%	-83.32%
XHR	65 Neutral	$1.28B	24.11	4.58%	4.00%	4.29%	141.01%
INN	63 Neutral	$598.10M	―	0.16%	6.52%	-1.20%	-328.23%
CLDT	58 Neutral	$315.84M	586.49	1.13%	5.22%	-3.79%	―
BHR	55 Neutral	$180.78M	―	-1.09%	7.55%	-2.84%	-11.92%
SVC	42 Neutral	$304.24M	―	-35.25%	2.21%	-0.56%	-14.18%

Summit Hotel Properties Corporate Events

Summit Hotel Properties Reports Q3 2025 Financial Results

Summit Hotel Properties, Inc. is a self-managed lodging property investment company operating as a real estate investment trust (REIT) with a diverse portfolio of 97 properties across the United States, primarily under premium franchise brands like Marriott, Hilton, Hyatt, and IHG. In its latest earnings report for the quarter ending September 30, 2025, Summit Hotel Properties reported total revenues of $177.1 million, slightly up from the previous year, but faced a net loss of $11.3 million attributable to common stockholders, compared to a loss of $4.3 million in the same period last year. The company’s operating income decreased to $8.6 million from $15.8 million, primarily due to increased expenses and interest costs. Despite the losses, the company maintained its focus on strategic property sales, including the sale of properties in Amarillo, TX, and Kansas City, MO, expected to close in the fourth quarter of 2025. Looking ahead, Summit Hotel Properties remains committed to optimizing its portfolio and managing its debt strategically, with plans to refinance its convertible notes due in 2026, indicating a cautious but proactive approach to future growth and financial stability.

Summit Hotel Properties: Mixed Earnings Call Insights

The recent earnings call for Summit Hotel Properties painted a mixed picture for investors. While the company celebrated significant achievements in asset sales, market share gains, and proactive balance sheet management, these successes were tempered by notable declines in RevPAR, largely influenced by reductions in government and international travel. Despite these challenges, the outlook for 2026 remains optimistic, suggesting a brighter future ahead.