Summit Hotel Properties (INN) AI Stock Analysis

• Market Cap: $509.18M
• Dividend Yield: 6.61%
• Average Volume (3M): 742.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -1.20%
• EPS Growth: -328.23%
• Country: US
• Employees: 85
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.06
• Shares Outstanding: 108,803,024
• 10 Day Avg. Volume: 698,434
• 30 Day Avg. Volume: 742,846
• PEG Ratio: 0.12
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 3.49
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 1.74
• Enterprise Value/Ebitda: 2.03
• 1Y Price Target: $5.50
• Price Target Upside: 28.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.5
• Revenue Forecast (FY): $741.87M

• Rating: 53 Neutral
• Price Target: $4.50 ▲(5.14% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is held back primarily by unstable profitability and leverage-related balance sheet risk (with some data inconsistency), plus a weak technical trend below major moving averages. Offsetting these are consistently positive operating cash flow, a high dividend yield, and a mixed-but-improving medium-term narrative from management driven by cost control, refinancing actions, and potential 2026 demand catalysts.

Positive Factors

Consistent cash generation

Consistently positive operating cash flow and a sharp free cash flow increase in 2025 provide durable internal funding for operations, capex, dividends and debt service. This cash generation reduces reliance on external financing and supports operational flexibility across cycles.

Proactive liability management

Refinancing that lowers borrowing costs, pushes maturities out to 2028 and fixes most interest exposure materially reduces short-term refinancing and rate risk. This structural improvement enhances balance sheet stability and preserves cash for operations and strategic uses.

Disciplined capital recycling

A sustained program of selling non-core assets to fund redeployment and cut near-term capex demonstrates disciplined portfolio management. Capital recycling strengthens liquidity, focuses the portfolio on higher-return assets and supports reinvestment or shareholder distributions.

Negative Factors

Elevated leverage and data inconsistency

Sustained elevated leverage in prior years leaves the REIT sensitive to cyclical revenue shocks and interest costs. The anomalous 2025 'zero debt' datapoint undermines transparency and makes assessing true leverage and covenant risk difficult, increasing medium-term balance sheet uncertainty.

Volatile profitability and margins

Swinging from modest profits to a 2025 net loss and declining EBITDA margin signals inconsistent operating performance. This volatility erodes earnings quality, complicates FFO predictability and raises questions about the sustainability of distributions and reinvestment over the next several quarters.

Concentration risk in government & international demand

Heavy exposure to government and international travel that has fallen sharply creates structural top-line risk. If these segments remain weak, RevPAR and revenue will be pressured for multiple quarters, limiting margin recovery and FFO improvement despite other cost actions.

Summit Hotel Properties Business Overview & Revenue Model

Company Description

Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded hotels with efficient operating models primarily in the Upscale segment of the lodging industry. As of November 3, 2020, the Company's portfolio consisted of 72 hotels, 67 of which are wholly owned, with a total of 11,288 guestrooms located in 23 states.

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

Cash flow is a relative strength (consistently positive operating cash flow and generally positive free cash flow, with a sharp reported jump in 2025), but earnings are volatile with a return to net losses in 2025 and a lower 2025 EBITDA margin versus 2022–2024. Balance sheet risk is elevated due to high leverage in 2021–2024, and the 2025 “zero debt” figure is a major inconsistency that reduces confidence in comparability.

Income Statement

Revenue has largely stabilized in the ~$675–$736M range from 2022–2025, with a solid rebound vs. 2021 and a strong 2025 revenue growth rate (+27.9%). Profitability, however, has been inconsistent: net income swung from modest profitability in 2024 to a loss in 2025, and margins remain volatile after the pandemic-era disruption. EBITDA margin held at a reasonable level in 2025 (~6.1%) but is meaningfully lower than 2022–2024 levels, signaling weaker operating efficiency and/or higher costs.

Balance Sheet

Leverage appears elevated in 2021–2024, with debt running around 1.5–1.6x equity, which is a key risk for a hotel REIT given cyclical demand and rate sensitivity. Equity remains sizeable (roughly $862M–$960M) and assets are stable near ~$2.8–$3.0B, but returns on equity have been inconsistent and turned negative again in 2025. Notably, 2025 shows total debt as zero and a zero debt-to-equity ratio, which is a major year-over-year break from prior years and reduces confidence in the comparability of that specific data point.

Cash Flow

Cash generation has been a relative strength: operating cash flow is consistently positive from 2021–2025 and materially improved from 2020’s outflow. Free cash flow is positive in most years and jumps sharply in 2025 (with strong reported growth), supporting flexibility for reinvestment and shareholder returns. The main weakness is variability—free cash flow declined in 2024 versus 2023—and the relationship between cash flow and earnings is uneven due to net income swings, implying earnings quality and non-cash items can materially influence reported profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	727.44M	729.47M	731.78M	736.13M	675.70M	361.93M
Gross Profit	246.21M	0.00	259.64M	258.02M	238.46M	107.45M
EBITDA	211.38M	44.51M	259.22M	212.40M	220.57M	82.21M
Net Income	1.58M	-23.57M	43.64M	-9.49M	1.47M	-65.57M
Balance Sheet
Total Assets	2.85B	2.78B	2.90B	2.94B	3.02B	2.26B
Cash, Cash Equivalents and Short-Term Investments	41.13M	2.68B	40.64M	37.84M	51.26M	64.48M
Total Debt	1.45B	0.00	1.42B	1.46B	1.48B	1.43B
Total Liabilities	1.55B	1.50B	1.51B	1.54B	1.56B	1.16B
Stockholders Equity	875.79M	862.15M	909.54M	911.20M	959.81M	948.07M
Cash Flow
Free Cash Flow	124.90M	149.03M	77.02M	153.64M	93.15M	66.05M
Operating Cash Flow	152.67M	149.03M	166.32M	153.64M	169.62M	66.05M
Investing Cash Flow	-144.84M	-43.39M	-71.50M	-101.96M	-290.51M	-74.24M
Financing Cash Flow	-19.47M	0.00	-94.23M	-65.72M	85.76M	66.24M

Summit Hotel Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 4.28 is below the 20-day moving average (MA) of 4.39, below the 50-day MA of 4.62, and below the 200-day MA of 4.91, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 39.96 is Neutral, neither overbought nor oversold. The STOCH value of 14.83 is Positive, 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%
XHR	62 Neutral	$1.49B	24.37	4.58%	3.71%	4.29%	141.01%
CLDT	59 Neutral	$354.65M	51.44	1.13%	5.00%	-3.79%	―
RLJ	58 Neutral	$1.22B	165.84	1.49%	7.76%	-0.58%	-83.32%
BHR	55 Neutral	$209.43M	-3.58	-1.09%	7.17%	-2.84%	-11.92%
INN	53 Neutral	$509.18M	-22.69	0.16%	6.61%	-1.20%	-328.23%
SVC	53 Neutral	$364.75M	―	-35.25%	2.31%	-0.56%	-14.18%

Summit Hotel Properties Corporate Events

Summit Hotel Properties Lowers Borrowing Costs with Amendments

On December 17, 2025, Summit Hotel Properties, Inc., its operating partnership and subsidiaries, and certain joint venture entities executed a series of amendments with Bank of America and Regions Bank that reduced the interest payable under multiple existing credit facilities by eliminating a 0.10 percentage point credit spread adjustment to the term SOFR rate. The coordinated changes across the delayed draw term loan, joint venture credit facility, 2024 term loan, and main operating partnership credit facility are expected to modestly lower the company’s borrowing costs and improve financing terms, potentially enhancing cash flow and balance-sheet flexibility for the hotel REIT and its related ventures.

The most recent analyst rating on (INN) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Summit Hotel Properties stock, see the INN Stock Forecast page.