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Summit Hotel Properties
(NYSE:INN)
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Rating:65Neutral
Price Target:
$7.50
â–²(57.23% Upside)
Action:Reiterated
Date:07/01/26
The score is driven primarily by solid cash generation but inconsistent profitability and only moderate balance-sheet clarity, resulting in a middling financial profile. Technicals are a clear positive with the stock in an established uptrend above key moving averages. Valuation is mixed—an attractive yield is offset by loss-driven negative P/E—while the earnings call was constructive with raised guidance but tempered by margin/capex pressures and some data inconsistencies.
Positive Factors
Strong cash generation
Consistent operating and free cash flow provides durable funding for dividends, share repurchases, and reinvestment without relying solely on net income. This cash resilience helps the REIT absorb cyclical RevPAR swings, fund required capex, and maintain distributions over the next several quarters.
Negative Factors
Inconsistent profitability
Revenue growth has resumed, but earnings have swung into a small TTM loss and negative margins, indicating fragile profit conversion. Persistent volatility between net income and cash flow complicates forecasting of FFO and dividend sustainability, raising execution risk over multi-quarter horizons.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent operating and free cash flow provides durable funding for dividends, share repurchases, and reinvestment without relying solely on net income. This cash resilience helps the REIT absorb cyclical RevPAR swings, fund required capex, and maintain distributions over the next several quarters.
Read all positive factors
Summit Hotel Properties Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across the company’s business lines — for Summit Hotel Properties that means income from owned hotel operations (guest rooms, food and beverage, and other guest services), fee or ancillary income, and occasional one-time items such as property sales or insurance recoveries. The mix matters because room revenue drives core cash flow and is sensitive to occupancy and average room rates, while a larger share of fee or other recurring income can reduce volatility; watching segment trends helps you judge dividend sustainability, growth potential, and exposure to travel cycles or local market weakness.
Breaks down revenue across the company’s business lines — for Summit Hotel Properties that means income from owned hotel operations (guest rooms, food and beverage, and other guest services), fee or ancillary income, and occasional one-time items such as property sales or insurance recoveries. The mix matters because room revenue drives core cash flow and is sensitive to occupancy and average room rates, while a larger share of fee or other recurring income can reduce volatility; watching segment trends helps you judge dividend sustainability, growth potential, and exposure to travel cycles or local market weakness.
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The Fly
The FlySummit Hotel Properties (INN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$810.05M
Dividend Yield6.61%
Average Volume (3M)753.09K
Price to Earnings (P/E)―
Beta (1Y)1.14
Revenue Growth0.26%
EPS Growth-233.17%
CountryUS
Employees85
SectorReal Estate
Sector Strength53
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)-0.29
Shares Outstanding108,365,080
10 Day Avg. Volume741,665
30 Day Avg. Volume753,086
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)0.60
Price to Sales (P/S)0.71
P/FCF Ratio7.07
Enterprise Value/Market Cap2.56
Enterprise Value/Revenue2.84
Enterprise Value/Gross Profit-15.73
Enterprise Value/Ebitda6.60
Forecast
1Y Price Target
$7.00Price Target Upside46.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.48
Revenue Forecast (FY)$738.92M
Summit Hotel Properties Business Overview & Revenue Model
Company Description
Summit Hotel Properties, Inc. is a publicly listed real estate investment trust (REIT) that concentrates on acquiring and managing premium-branded, efficiently operated hotels, primarily within the upscale segment of the hospitality sector. As of ...
How the Company Makes Money
Summit Hotel Properties makes money primarily by generating hotel-level operating income from the properties it owns. The core revenue stream is rooms revenue (guest room rentals), which is driven by occupancy and average daily rate; hotels may al...
Summit Hotel Properties Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive and improving operating picture driven by strong rate-led recovery, notable March and April strength, raised guidance, active capital recycling, share repurchases, and improved government demand trends. Near-term headwinds—early-quarter softness, specific event disruptions, modest expense pressure, and meaningful second-half capex—were acknowledged but appear manageable given the company’s balance sheet actions and guidance bump. Despite some transcript data inconsistencies that require careful vetting, the overall tone was optimistic with momentum into Q2.Positive Updates
Sequential operating improvement with strong March performance
Pro forma portfolio RevPAR inflected positive in Q1, up 0.2% year over year, with operating fundamentals improving each month. March RevPAR grew ~4.1% driven by a 5.6% increase in average rate; March strength also drove double-digit RevPAR growth in a dozen markets (including Baltimore, Charlotte, Cleveland, Miami, Pittsburgh, San Francisco, and Washington, D.C.). Management reported March trends continued into April.
Negative Updates
Early-quarter softness and event-driven headwinds
RevPAR declined in January and February and Q1 faced multiple headwinds including a difficult Super Bowl comparison in New Orleans (six hotels), disruption from winter storm Fern, and civil unrest in Minneapolis. Management estimated these events collectively created ~140 basis points of headwind to Q1 RevPAR growth, concentrated in Jan/Feb.
Read all updates
Q1-2026 Updates
Positive
Negative
Sequential operating improvement with strong March performance
Pro forma portfolio RevPAR inflected positive in Q1, up 0.2% year over year, with operating fundamentals improving each month. March RevPAR grew ~4.1% driven by a 5.6% increase in average rate; March strength also drove double-digit RevPAR growth in a dozen markets (including Baltimore, Charlotte, Cleveland, Miami, Pittsburgh, San Francisco, and Washington, D.C.). Management reported March trends continued into April.
Read all positive updates
Company Guidance
Summit raised its full‑year outlook and provided detailed guidance: April RevPAR is expected to be ~+3.5% with second‑quarter revenue pace ~+4% (June pacing currently up high‑teens), and full‑year RevPAR growth guidance was increased to +0.5% to +3.0%, which translates to adjusted EBITDA of $170M–$181M and adjusted FFO of $0.75–$0.85 per share; hotel EBITDA margins are expected to be flat to down ~75 bps (including ~25 bps from higher property taxes) with nominal expense growth of ~3%. The company expects pro rata interest expense of $58M–$62M, preferred distributions of $18.5M, and pro rata capital expenditures of $55M–$65M (guidance assumes the 94 hotels owned as of 3/31/26 and includes ~$0.5M of foregone hotel EBITDA if the Dallas Arlington sale closes). First‑quarter results were: pro forma RevPAR +0.2%, adjusted EBITDA $44.2M and adjusted FFO $25.5M ($0.21/sh); Q1 share repurchases totaled 1.4M shares for $6M (remaining repurchase capacity ~$29M; ~5M shares repurchased since program launch, ~4% of shares, average price ~$4.26); quarterly dividend $0.08/share (annualized $0.32, ~6.4% yield); and the balance sheet is stable with no maturities until 2028, roughly 50% of pro rata debt fixed via swaps (over 60% fixed including preferred) and an average maturity of ~3.5 years.Summit Hotel Properties Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 730.05M | 729.47M | 731.78M | 736.13M | 675.70M | 361.93M |
| Gross Profit | -131.60M | -55.85M | 259.64M | 258.02M | 238.46M | 107.45M |
| EBITDA | 313.57M | 219.47M | 259.22M | 212.40M | 220.57M | 82.21M |
| Net Income | -12.65M | -7.96M | 43.64M | -9.49M | 1.47M | -65.57M |
Balance Sheet | ||||||
| Total Assets | 2.75B | 2.78B | 2.90B | 2.94B | 3.02B | 2.26B |
| Cash, Cash Equivalents and Short-Term Investments | 2.64B | 36.11M | 40.64M | 37.84M | 51.26M | 64.48M |
| Total Debt | 1.42B | 1.42B | 1.42B | 1.46B | 1.48B | 1.43B |
| Total Liabilities | 1.50B | 1.50B | 1.51B | 1.54B | 1.56B | 1.16B |
| Stockholders Equity | 840.41M | 862.15M | 909.54M | 911.20M | 959.81M | 948.07M |
Cash Flow | ||||||
| Free Cash Flow | 120.25M | 73.55M | 77.02M | 153.64M | 93.15M | 66.05M |
| Operating Cash Flow | 151.28M | 149.03M | 166.32M | 153.64M | 169.62M | 66.05M |
| Investing Cash Flow | -26.34M | -42.44M | -71.50M | -101.96M | -290.51M | -74.24M |
| Financing Cash Flow | -130.84M | -113.73M | -94.23M | -65.72M | 85.76M | 66.24M |
Summit Hotel Properties Technical Analysis
Positive
4.77
Price Trends
5.75
Positive
5.06
Positive
5.01
Positive
Market Momentum
0.35
Negative
61.06
Neutral
69.03
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 4.77 is below the 20-day moving average (MA) of 6.45, below the 50-day MA of 5.75, and below the 200-day MA of 5.01, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 61.06 is Neutral, neither overbought nor oversold. The STOCH value of 69.03 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 74 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $605.46M | 228.75 | 1.24% | 5.00% | -7.39% | -69.66% | |
67 Neutral | $1.79B | -1,134.95 | 1.14% | 7.76% | -0.83% | -103.51% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $810.05M | -23.82 | -1.46% | 6.61% | 0.26% | -233.17% | |
65 Neutral | $1.84B | 29.47 | 5.76% | 3.71% | 2.31% | 208.08% | |
51 Neutral | $148.35M | -6.25 | -3.38% | 7.17% | -3.86% | -11.52% | |
50 Neutral | $1.09B | -1.18 | -38.18% | 2.31% | -8.19% | 24.63% |
* Real Estate Sector Average
INN
Summit Hotel Properties
6.68
1.65
32.86%
SVC
Service Properties
1.68
-0.82
-32.80%
CLDT
Chatham Lodging
12.97
6.04
87.21%
RLJ
RLJ Lodging
11.69
4.68
66.81%
BHR
Braemar Hotels & Resorts
2.16
-0.31
-12.69%
XHR
Xenia Hotels & Resorts
19.90
7.20
56.66%
Summit Hotel Properties Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Summit Hotel Properties Announces New $650 Million Credit Facility
Positive
Jun 30, 2026
On June 29, 2026, Summit Hotel OP, LP, the operating arm of Summit Hotel Properties, Inc., entered into a new $650 million senior unsecured credit facility with Bank of America as administrative agent, replacing its prior credit agreement. The ame...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Summit Hotel Properties CFO Resigns, CEO Assumes Role
Neutral
Jun 12, 2026
On June 12, 2026, Summit Hotel Properties announced that Executive Vice President and Chief Financial Officer William “Trey” Conkling resigned effective June 15, 2026, citing personal reasons, with the company emphasizing that his depa...
Executive/Board ChangesShareholder Meetings
Summit Hotel Shareholders Back Directors, Auditor and Pay
Positive
May 21, 2026
On May 20, 2026, Summit Hotel Properties, Inc. held its Annual Meeting of Stockholders, with 86.18% of outstanding shares represented, and stockholders elected eight directors to serve until the 2027 annual meeting. Investors also ratified Ernst ...
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.