Summit Hotel Properties (INN) AI Stock Analysis

• Market Cap: $593.23M
• Dividend Yield: 6.61%
• Average Volume (3M): 744.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• 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: 872,396
• 30 Day Avg. Volume: 744,214
• 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: 4.05
• Enterprise Value/Revenue: 3.30
• Enterprise Value/Gross Profit: 9.76
• Enterprise Value/Ebitda: 11.37
• 1Y Price Target: $4.75
• Price Target Upside: -2.46% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.28
• Revenue Forecast (FY): $727.16M

• Rating: 59 Neutral
• Price Target: $5.50 ▲(12.94% Upside)

Summit Hotel Properties faces profitability challenges and a mixed technical outlook, which weigh on its overall score. However, the company's strong dividend yield and recent improvements in borrowing costs provide some support. The optimistic outlook for 2026, driven by event-related demand, offers potential upside, but current market conditions and financial performance remain areas of concern.

Positive Factors

Proactive Balance Sheet Management

Refinancing efforts reduce interest expenses and extend debt maturities, enhancing financial stability and flexibility.

Positive Outlook for 2026

Event-driven demand and favorable supply dynamics in 2026 could boost occupancy and revenue, supporting long-term growth.

Improved Market Share

Gains in market share indicate strong competitive positioning and ability to capture demand, enhancing revenue potential.

Negative Factors

Decline in Same-Store RevPAR

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

Impact of Travel Reductions

Reduced travel demand from key segments limits revenue growth and highlights vulnerability to external travel trends.

Profitability Challenges

Negative profit margins indicate ongoing struggles with cost control and revenue generation, affecting long-term viability.

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

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: 4.87
• 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 4.87 is below the 20-day moving average (MA) of 5.05, below the 50-day MA of 5.17, and below the 200-day MA of 4.95, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 40.39 is Neutral, neither overbought nor oversold. The STOCH value of 11.74 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	64 Neutral	$1.40B	26.32	4.58%	3.71%	4.29%	141.01%
INN	59 Neutral	$593.23M	-25.82	0.16%	6.61%	-1.20%	-328.23%
CLDT	59 Neutral	$334.28M	620.72	1.13%	5.00%	-3.79%	―
RLJ	58 Neutral	$1.16B	158.80	1.49%	7.76%	-0.58%	-83.32%
BHR	57 Neutral	$199.88M	-3.38	-1.09%	7.17%	-2.84%	-11.92%
SVC	42 Neutral	$294.15M	-1.05	-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.