Summit Hotel Properties (INN) AI Stock Analysis

• Market Cap: $685.84M
• Dividend Yield: 5.72%
• Average Volume (3M): 854.49K
• Price to Earnings (P/E): 41.2
• Beta (1Y): 1.34
• Revenue Growth: -1.91%
• EPS Growth: -256.67%
• Country: US
• Employees: 85
• Sector: Real Estate
• Sector Strength: 49
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.02
• Shares Outstanding: 108,808,784
• 10 Day Avg. Volume: 763,007
• 30 Day Avg. Volume: 854,494
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.48
• Enterprise Value/Revenue: 3.28
• Enterprise Value/Gross Profit: 11.07
• Enterprise Value/Ebitda: 10.70
• 1Y Price Target: $5.88
• Price Target Upside: 4.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: $6.00 ▲(6.57% Upside)

Summit Hotel Properties shows strong financial management and cash flow generation, which are significant strengths. Technical indicators suggest a positive short-term trend, but valuation concerns due to negative earnings impact the score. The earnings call provided a balanced view of effective strategies and demand challenges, contributing to a moderate overall score.

Positive Factors

Strong Cash Flow Generation

Summit Hotel Properties' strong cash flow generation highlights its ability to effectively manage operations and reinvest in growth, ensuring long-term financial stability and flexibility.

Effective Cost Management

The company's ability to control operating expenses supports margin stability, which is crucial for maintaining profitability in a competitive hospitality market.

Market Share Growth

Increasing market share indicates successful revenue strategies and competitive positioning, enhancing long-term growth prospects in the hospitality sector.

Negative Factors

Decline in RevPAR

A decline in RevPAR suggests challenges in maintaining pricing power and occupancy rates, potentially impacting revenue and profitability in the near term.

Weak Government and International Demand

Weak demand from government and international segments may limit growth opportunities, affecting occupancy rates and revenue diversification.

Challenging Market Conditions

Challenging market conditions in key areas could hinder overall portfolio performance, necessitating strategic adjustments to mitigate regional weaknesses.

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 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 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. The overall financial health is robust, reflecting a well-managed financial strategy in the REIT - Hotel & Motel industry.

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	727.13M	731.78M	736.13M	675.70M	361.93M	234.46M
Gross Profit	215.31M	259.64M	258.02M	255.90M	117.31M	34.07M
EBITDA	222.86M	227.74M	212.40M	208.05M	83.07M	1.98M
Net Income	8.61M	43.64M	-9.49M	1.47M	-68.58M	-149.25M
Balance Sheet
Total Assets	2.87B	2.90B	2.94B	3.02B	2.26B	2.23B
Cash, Cash Equivalents and Short-Term Investments	2.76B	52.21M	51.80M	51.26M	64.48M	20.72M
Total Debt	0.00	1.42B	1.46B	1.69B	1.09B	1.11B
Total Liabilities	1.54B	1.51B	1.54B	1.56B	1.16B	1.18B
Stockholders Equity	895.15M	909.54M	911.20M	959.81M	948.07M	988.74M
Cash Flow
Free Cash Flow	202.45M	166.32M	64.06M	93.15M	45.70M	-64.68M
Operating Cash Flow	162.53M	166.32M	153.64M	169.62M	66.05M	-42.05M
Investing Cash Flow	-161.26M	-71.50M	-101.96M	-290.51M	-74.24M	-30.71M
Financing Cash Flow	-5.54M	-94.23M	-65.72M	85.76M	66.24M	41.83M

Summit Hotel Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 5.63 is above the 20-day moving average (MA) of 5.37, above the 50-day MA of 5.31, and above the 200-day MA of 5.40, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 58.48 is Neutral, neither overbought nor oversold. The STOCH value of 73.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INN.

Summit Hotel Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XHR	71 Outperform	$1.38B	22.74	5.00%	3.60%	4.81%	185.08%
INN	68 Neutral	$685.84M	41.24	0.93%	5.72%	-1.91%	-256.67%
Sector *	63 Neutral	$7.03B	13.25	-0.30%	6.93%	4.01%	-25.47%
CLDT	61 Neutral	$348.73M	268.68	1.22%	4.49%	-0.87%	―
BHR	58 Neutral	$203.29M	―	-0.07%	6.87%	-3.68%	38.92%
SVC	49 Neutral	$468.25M	―	-32.60%	1.42%	-0.23%	-38.68%
AHT	46 Neutral	$37.96M	―	-25.85%	―	-11.83%	-4186.83%

Summit Hotel Properties Corporate Events

Summit Hotel Properties Secures $400 Million Credit Facility

On July 24, 2025, Summit JV MR 2, LLC and its affiliates entered into a $400 million credit facility with several lenders, including Bank of America and Wells Fargo, to support their operations. The facility, which can be increased to $600 million, is secured by equity interests in subsidiaries holding borrowing base assets and includes various financial covenants and conditions, impacting the company’s financial flexibility and operational strategy.