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Summit Hotel Properties (INN)
:INN
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Summit Hotel Properties
(NYSE:INN)
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Rating:62Neutral
Price Target:
$5.50
▲(2.61% Upside)
Summit Hotel Properties' overall stock score reflects a strong financial performance with effective cost management and a solid balance sheet. However, technical indicators suggest bearish momentum, and valuation concerns arise from a negative P/E ratio. The earnings call highlights both achievements and challenges, with an optimistic outlook for 2026.
Summit Hotel Properties (INN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$654.13M
Dividend Yield5.96%
Average Volume (3M)713.31K
Price to Earnings (P/E)―
Beta (1Y)1.17
Revenue Growth-1.20%
EPS Growth-328.23%
CountryUS
Employees85
SectorReal Estate
Sector Strength53
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)-0.11
Shares Outstanding108,803,024
10 Day Avg. Volume809,052
30 Day Avg. Volume713,314
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)0.80
Price to Sales (P/S)0.99
P/FCF Ratio9.42
Enterprise Value/Market Cap3.68
Enterprise Value/Revenue3.30
Enterprise Value/Gross Profit12.51
Enterprise Value/Ebitda12.61
Forecast
1Y Price Target
$4.50Price Target Upside-16.04% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)-0.17
Revenue Forecast (FY)$728.76M
Summit Hotel Properties Business Overview & Revenue Model
Company DescriptionSummit Hotel Properties, Inc. is a real estate investment trust (REIT) focused on the acquisition, ownership, and leasing of premium-branded hotels primarily in the upscale and upper midscale segments of the hospitality industry. The company operates a diversified portfolio of hotels, primarily under well-known brands such as Marriott, Hilton, and Hyatt, catering to both business and leisure travelers across various geographic locations in the United States.
How the Company Makes MoneySummit Hotel Properties generates revenue primarily through the operation and leasing of its hotel properties, which are managed by reputable hotel brands. The company earns rental income from its hotel leases, which typically involve long-term agreements with established hotel operators. Additionally, it may benefit from incentive management fees tied to the performance of the hotels. Revenue streams are further supplemented by ancillary services offered within the hotels, such as food and beverage sales and other guest services. The company's strategic focus on premium branded hotels in high-demand markets allows it to capitalize on both occupancy rates and average daily rates (ADR), enhancing its overall profitability. Furthermore, partnerships with leading hotel brands and management companies contribute to its operational efficiency and brand recognition, which are vital in attracting guests and maintaining high occupancy levels.
Summit Hotel Properties Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 02, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant achievements in asset sales, market share gains, and balance sheet management. However, these were offset by notable declines in RevPAR, particularly influenced by reductions in government and international travel. The outlook for 2026 is optimistic, but current challenges persist.Q3-2025 Updates
Positive Updates
Successful Asset Sales and Capital Recycling
Summit Hotel Properties completed the sale of two noncore hotels generating $39 million in gross proceeds, with a blended yield of 4.3%. This continues their capital recycling strategy, having sold 12 hotels since May 2023, generating over $185 million in proceeds and eliminating $60 million in capital expenditures.
Improved Market Share and Non-Rooms Revenue Growth
RevPAR index increased by 140 basis points to 116% year-over-year, reflecting gains in both occupancy and daily rate. Non-rooms revenue grew 5.6% in Q3, driven by food and beverage sales, resort fees, and parking charges.
Proactive Balance Sheet Management
Refinanced a $400 million term loan, reducing the interest rate spread by 50 basis points. Pro forma debt has no maturities until 2028, with 75% of debt fixed after swaps, and maintained ample liquidity.
Positive Outlook for 2026
Expecting benefits from the 2026 World Cup and a lack of new hotel supply growth, enabling favorable supply-demand dynamics.
Negative Updates
Decline in Same-Store RevPAR
Same-store RevPAR declined 3.7% year-over-year, driven by a 3.4% decline in average daily rate and flat occupancy. This was largely due to reductions in government and international inbound travel.
Impact of Government and International Travel Reductions
Demand from government and international inbound segments was down 20% year-over-year, accounting for nearly 50% of the overall RevPAR decline.
Hurricane Impact on Houston Hotels
RevPAR in Houston hotels declined 17% due to last year's hurricane-driven demand, reducing overall third-quarter RevPAR growth by 50 basis points.
October Government Demand and Shutdown Effects
Government demand in October was down 30% year-over-year, exacerbated by the recent government shutdown, impacting short-term trends.
Company Guidance
During the Summit Hotel Properties Third Quarter 2025 Earnings Conference Call, the company provided guidance for the remainder of the year, indicating expectations for sequential improvement in operating trends. The third quarter saw a same-store RevPAR decline of 3.7%, mostly due to a 3.4% drop in average daily rate, while occupancy remained stable. The company highlighted successful cost management with operating expenses rising only 1.8% year-over-year. Fourth quarter RevPAR is projected to decline between 2% and 2.5% year-over-year, with operating expense growth expected to be between 1.5% and 2% for the full year. The company also noted the impact of government and international inbound travel reductions, which collectively contributed to nearly 50% of the RevPAR decline year-over-year. Looking forward to 2026, the company is optimistic due to favorable event-driven demand, including the 2026 World Cup, and expects improvement in government travel comparisons post-March.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.75
Positive
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.70
Positive
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.80
Positive
| 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 | 192.09M | 259.64M | 258.02M | 238.46M | 107.45M | 27.79M |
| EBITDA | 190.70M | 259.22M | 212.40M | 220.57M | 82.21M | 5.05M |
| Net Income | -3.04M | 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 | 2.72B | 40.64M | 37.84M | 51.26M | 64.48M | 20.72M |
| Total Debt | 0.00 | 1.42B | 1.46B | 1.48B | 1.43B | 1.11B |
| 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 | 152.67M | 77.02M | 64.06M | 93.15M | 45.70M | -64.68M |
| Operating Cash Flow | 152.67M | 166.32M | 153.64M | 169.62M | 66.05M | -42.05M |
| Investing Cash Flow | -166.98M | -71.50M | -101.96M | -290.51M | -74.24M | -30.71M |
| Financing Cash Flow | 2.82M | -94.23M | -65.72M | 85.76M | 66.24M | 41.83M |
Summit Hotel Properties Technical Analysis
Positive
5.36
Price Trends
5.42
Negative
5.32
Positive
5.10
Positive
Market Momentum
0.02
Negative
51.44
Neutral
58.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INN, the sentiment is Positive. The current price of 5.36 is above the 20-day moving average (MA) of 5.29, below the 50-day MA of 5.42, and above the 200-day MA of 5.10, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 51.44 is Neutral, neither overbought nor oversold. The STOCH value of 58.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INN.
Summit Hotel Properties Risk Analysis
Summit Hotel Properties disclosed 71 risk factors in its most recent earnings report. Summit Hotel Properties reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Summit Hotel Properties Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $1.33B | 25.11 | 4.58% | 3.84% | 4.29% | 141.01% | |
62 Neutral | $654.13M | ― | 0.16% | 5.96% | -1.20% | -328.23% | |
62 Neutral | $1.10B | 150.10 | 1.49% | 8.08% | -0.58% | -83.32% | |
59 Neutral | $325.06M | 603.60 | 1.13% | 5.07% | -3.79% | ― | |
55 Neutral | $184.87M | ― | -1.09% | 7.38% | -2.84% | -11.92% | |
45 Neutral | $285.75M | ― | -35.25% | 2.35% | -0.56% | -14.18% |
* Real Estate Sector Average
INN
Summit Hotel Properties
5.37
-0.37
-6.45%
SVC
Service Properties
1.70
-0.91
-34.87%
CLDT
Chatham Lodging
6.70
-1.64
-19.66%
RLJ
RLJ Lodging
7.43
-1.53
-17.08%
BHR
Braemar Hotels & Resorts
2.71
-0.41
-13.14%
XHR
Xenia Hotels & Resorts
14.06
-0.12
-0.85%
Summit Hotel Properties Corporate Events
Summit Hotel Properties: Mixed Sentiment in Earnings Call
Aug 8, 2025
The recent earnings call of Summit Hotel Properties painted a mixed picture, reflecting both achievements and challenges. While the company demonstrated effective cost management and strategic initiatives that bolstered its performance, it faced revenue challenges. Notable accomplishments included market share growth and successful refinancing efforts. However, a decline in RevPAR and government demand, along with reduced full-year guidance, underscored ongoing challenges in the current market environment.
Summit Hotel Properties Reports Q2 2025 Earnings
Aug 7, 2025
Summit Hotel Properties, Inc. is a self-managed lodging property investment company focused on owning lodging properties with efficient operating models, primarily operating in the real estate investment trust (REIT) sector. The company owns a diverse portfolio of 97 lodging properties across 25 states in the USA, with a significant presence in top metropolitan areas and affiliations with major hotel brands like Marriott, Hilton, Hyatt, and IHG.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.