Summit Hotel Properties (INN)
NYSE:INN
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Summit Hotel Properties
(NYSE:INN)
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Rating:54Neutral
Price Target:
$5.00
▲(4.82% Upside)
Action:ReiteratedDate:03/10/26
The score is driven primarily by mixed financial performance—stronger cash generation but volatile earnings and leverage-related balance-sheet risk—alongside weak technicals that indicate bearish momentum. A high dividend yield and a cautiously positive 2026 outlook provide support, while near-term margin/interest headwinds and recent losses cap the upside.
Positive Factors
Consistent Cash Generation
Consistently positive operating cash flow through 2021–2025 and stronger free cash flow in 2025 provide durable internal funding for maintenance capex, portfolio reinvestment, and dividends. This recurring cash generation cushions cyclical revenue swings and supports capital allocation without sole reliance on equity markets.
Negative Factors
Historically Elevated Leverage
Sustained leverage near 1.5–1.6x equity increases vulnerability to downturns and interest-cost shocks in a cyclical lodging sector. High debt amplifies earnings volatility and constrains options for opportunistic acquisitions or larger buybacks, demanding consistent cash flow to avoid balance-sheet strain.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Cash Generation
Consistently positive operating cash flow through 2021–2025 and stronger free cash flow in 2025 provide durable internal funding for maintenance capex, portfolio reinvestment, and dividends. This recurring cash generation cushions cyclical revenue swings and supports capital allocation without sole reliance on equity markets.
Read all positive factors
Summit Hotel Properties (INN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$612.69M
Dividend Yield6.61%
Average Volume (3M)753.09K
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth-0.32%
EPS Growth-195.85%
CountryUS
Employees85
SectorReal Estate
Sector Strength53
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)-0.06
Shares Outstanding108,798,680
10 Day Avg. Volume741,665
30 Day Avg. Volume753,086
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)0.60
Price to Sales (P/S)0.71
P/FCF Ratio7.07
Enterprise Value/Market Cap3.21
Enterprise Value/Revenue2.69
Enterprise Value/Gross Profit-35.17
Enterprise Value/Ebitda6.16
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)-0.5
Revenue Forecast (FY)$736.85M
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'...
How the Company Makes Money
Summit Hotel Properties makes money primarily by owning hotel real estate and earning hotel-level operating cash flow that remains after paying property operating expenses and fees. Its key revenue stream is hotel room revenue (generated from nigh...
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.
Data provided by:
The Fly
The FlySummit Hotel Properties Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveys cautious optimism: while 2025 was challenged by a ~1.8% full-year RevPAR decline and significant government/international demand headwinds, the company demonstrated sequential recovery in Q4 (200+ bps improvement), strong market-specific performance (San Francisco, Orlando, South Florida), effective expense and labor management, disciplined capital recycling (~$200M proceeds since 2023) and a stronger balance sheet with no near-term maturities. Management issued constructive 2026 guidance (RevPAR flat to +3%) and called out event tailwinds (World Cup ~50–75 bps uplift). Near-term risks remain (difficult Q1 comps, margin pressure, incremental interest), but on balance the fundamentals and capital positioning point to a positive outlook.Positive Updates
Sequential RevPAR Improvement and Market Share Gains
Fourth quarter RevPAR trends improved sequentially by over 200 basis points (CFO cited 240 bps), and the company's RevPAR index improved by 220 bps to an index of 117, indicating market-share gains and outperformance vs. competitive set.
Negative Updates
Full-Year and Q4 RevPAR Declines
Full-year 2025 same-store RevPAR declined 1.8%. Fourth quarter same-store/pro forma RevPAR declined ~1.6%–1.8% (CEO/CFO figures), with Q4 occupancy down 0.7% and ADR down 1.1% (pro forma).
Read all updates
Q4-2025 Updates
Positive
Negative
Sequential RevPAR Improvement and Market Share Gains
Fourth quarter RevPAR trends improved sequentially by over 200 basis points (CFO cited 240 bps), and the company's RevPAR index improved by 220 bps to an index of 117, indicating market-share gains and outperformance vs. competitive set.
Read all positive updates
Company Guidance
Summit guided to full‑year 2026 RevPAR of 0% to +3% (driven predominantly by ADR gains), which translates to adjusted EBITDA of $167M–$181M and adjusted FFO of $0.73–$0.85 per share; margins are expected to be flat to down ~100 bps with operating expenses up ~2%–3% (including ~25 bps of higher property tax headwinds). Pro rata interest expense is forecast at $57M–$61M (including an incremental ~$9M from refinancing the 1.5% convertibles), preferred distributions of $18.5M, and pro rata capex of $55M–$65M; the company also reiterated a quarterly common dividend of $0.08 ($0.32 annualized, ~7.7% yield). Management said Q1 will be the toughest quarter (January RevPAR ≈ -3%; March pace down <1%, April pace turning up mid‑single digits) with Q1 trending in line with Q4 (Q4 same‑store RevPAR -1.6%, pro forma RevPAR -1.8% and sequential RevPAR improvement >200 bps; Q4 RevPAR index improved 220 bps to 117). Balance sheet metrics: no debt maturities until 2028 after drawing a $275M delayed‑draw term loan to retire $288M of convertibles, ~50% of pro rata debt fixed (over 60% fixed including preferred), an average interest rate ~5.5% and average life near 4 years; management expects the FIFA World Cup (exposure to 6 host markets representing ~60% of domestic matches and ~1/3 of the portfolio) to add roughly 50–75 bps to full‑year RevPAR.Summit Hotel Properties Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
45
Neutral
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 729.47M | 731.78M | 736.13M | 675.70M | 361.93M |
| Gross Profit | -55.85M | 259.64M | 258.02M | 238.46M | 107.45M |
| EBITDA | 219.47M | 259.22M | 212.40M | 220.57M | 82.21M |
| Net Income | -7.96M | 43.64M | -9.49M | 1.47M | -65.57M |
Balance Sheet | |||||
| Total Assets | 2.78B | 2.90B | 2.94B | 3.02B | 2.26B |
| Cash, Cash Equivalents and Short-Term Investments | 2.68B | 40.64M | 37.84M | 51.26M | 64.48M |
| Total Debt | 1.44B | 1.42B | 1.46B | 1.48B | 1.43B |
| Total Liabilities | 1.50B | 1.51B | 1.54B | 1.56B | 1.16B |
| Stockholders Equity | 862.15M | 909.54M | 911.20M | 959.81M | 948.07M |
Cash Flow | |||||
| Free Cash Flow | 73.55M | 77.02M | 153.64M | 93.15M | 66.05M |
| Operating Cash Flow | 149.03M | 166.32M | 153.64M | 169.62M | 66.05M |
| Investing Cash Flow | -42.44M | -71.50M | -101.96M | -290.51M | -74.24M |
| Financing Cash Flow | -113.73M | -94.23M | -65.72M | 85.76M | 66.24M |
Summit Hotel Properties Technical Analysis
Positive
4.77
Price Trends
4.43
Positive
4.61
Positive
4.92
Negative
Market Momentum
0.12
Negative
61.04
Neutral
81.33
Negative
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 above the 20-day moving average (MA) of 4.49, above the 50-day MA of 4.43, and below the 200-day MA of 4.92, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 61.04 is Neutral, neither overbought nor oversold. The STOCH value of 81.33 is Negative, 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 73 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $404.54M | 22.07 | 2.01% | 5.00% | -6.98% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $1.23B | 645.83 | 1.29% | 7.76% | -1.43% | -94.61% | |
62 Neutral | $1.48B | 21.68 | 5.33% | 3.71% | 3.80% | 310.82% | |
54 Neutral | $612.69M | -65.40 | -0.63% | 6.61% | -0.32% | -195.85% | |
46 Neutral | $894.62M | -1.51 | -29.70% | 2.31% | -4.40% | 26.62% | |
46 Neutral | $166.20M | -8.70 | -4.39% | 7.17% | -3.35% | -39.12% |
* Real Estate Sector Average
INN
Summit Hotel Properties
5.13
1.32
34.82%
SVC
Service Properties
1.54
-0.28
-15.57%
CLDT
Chatham Lodging
8.72
2.15
32.72%
RLJ
RLJ Lodging
8.10
1.62
25.08%
BHR
Braemar Hotels & Resorts
2.39
0.56
30.60%
XHR
Xenia Hotels & Resorts
16.12
5.92
58.02%
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.