Summit Hotel Properties (INN) AI Stock Analysis

• Market Cap: $681.78M
• Dividend Yield: 6.01%
• Average Volume (3M): 2.67M
• Price to Earnings (P/E): 42.9
• Beta (1Y): 1.32
• Revenue Growth: -1.86%
• EPS Growth: N/A
• Country: US
• Employees: 85
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.04
• Shares Outstanding: 112,221,375
• 10 Day Avg. Volume: 3,616,083
• 30 Day Avg. Volume: 2,674,540
• PEG Ratio: -5.07
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.15
• Enterprise Value/Market Cap: 3.52
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 13.07
• Enterprise Value/Ebitda: 2.61
• 1Y Price Target: $5.00
• Price Target Upside: -8.42% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: $5.50 ▲(0.73%Upside)

Summit Hotel Properties' overall stock score is primarily driven by its strong financial performance and stable cash flow generation, which are significant strengths. However, the high valuation and mixed earnings call outlook, including RevPAR declines and demand softening, weigh down the score. Technical indicators signal overbought conditions, adding further caution.

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 ownership and operation of its hotel properties. The company's income is largely derived from room rentals, food and beverage sales, and other related services offered at its hotels. As a REIT, Summit benefits from tax advantages that require it to distribute a significant portion of its taxable income as dividends to shareholders. The company also engages in strategic partnerships with hotel management companies to operate its properties, which helps optimize operational efficiency and profitability. Additionally, Summit may pursue acquisitions and dispositions of properties to enhance its portfolio and drive growth in earnings.

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	728.12M	731.78M	736.13M	675.70M	361.93M	234.46M
Gross Profit	183.57M	259.64M	258.02M	255.90M	117.31M	34.07M
EBITDA	226.09M	227.74M	212.40M	208.05M	83.07M	1.98M
Net Income	41.07M	43.64M	-9.49M	1.47M	-68.58M	-149.25M
Balance Sheet
Total Assets	2.90B	2.90B	2.94B	3.02B	2.26B	2.23B
Cash, Cash Equivalents and Short-Term Investments	48.19M	40.64M	51.80M	51.26M	64.48M	20.72M
Total Debt	1.44B	1.42B	1.46B	1.69B	1.09B	1.11B
Total Liabilities	1.53B	1.51B	1.54B	1.56B	1.16B	1.18B
Stockholders Equity	920.44M	909.54M	911.20M	959.81M	948.07M	988.74M
Cash Flow
Free Cash Flow	183.05M	166.32M	64.06M	93.15M	45.70M	-64.68M
Operating Cash Flow	164.02M	166.32M	153.64M	169.62M	66.05M	-42.05M
Investing Cash Flow	-78.16M	-71.50M	-101.96M	-290.51M	-74.24M	-30.71M
Financing Cash Flow	-101.66M	-94.23M	-65.72M	85.76M	66.24M	41.83M

Summit Hotel Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 5.46 is above the 20-day moving average (MA) of 4.93, above the 50-day MA of 4.52, and below the 200-day MA of 5.67, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 65.44 is Neutral, neither overbought nor oversold. The STOCH value of 87.65 is Negative, 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
BHR	74 Outperform	$167.62M	―	-0.90%	8.00%	-2.42%	23.64%
CLDT	70 Neutral	$346.81M	122.92	1.42%	5.08%	1.75%	―
XHR	69 Neutral	$1.27B	57.50	1.83%	4.24%	3.57%	12.66%
Sector *	66 Neutral	£962.26M	14.54	2.04%	234.64%	11.04%	38.13%
INN	65 Neutral	$681.78M	42.94	4.45%	6.01%	-1.86%	―
SVC	56 Neutral	$423.26M	―	-33.91%	1.57%	0.78%	-128.16%
AHT	48 Neutral	$37.68M	―	-25.85%	―	-14.65%	-55.62%

Summit Hotel Properties Corporate Events

Summit Hotel Properties Elects Directors at Annual Meeting

On May 21, 2025, Summit Hotel Properties held its Annual Meeting of Stockholders, where 87.62% of outstanding shares were represented. During the meeting, all eight director nominees were elected, Ernst & Young LLP was ratified as the independent accounting firm for 2025, and the compensation of the company’s executive officers was approved on a non-binding basis.

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.