Summit Hotel Properties, Inc. (INN)
Summit Hotel Properties, Inc. is a real estate investment trust (REIT) focused on owning premium-branded hotels within the Upscale segment of the lodging industry. As of November 2020, the company's portfolio included 72 hotels with 11,288 guestrooms across 23 states.
Company Overview
Summit Hotel Properties offers investors a compelling opportunity to capitalize on the recovering upscale lodging market, driven by its strategic portfolio of premium-branded hotels, efficient operating model, and attractive dividend yield, positioning it for long-term growth and value creation within the REIT sector.
Investment Thesis
Summit Hotel Properties presents a compelling investment opportunity due to its strategic focus on the Upscale segment of the lodging industry, which is poised for recovery and growth. The company's portfolio of premium-branded hotels, coupled with its efficient operating model, positions it to capitalize on increasing demand for travel and tourism. With a current dividend yield of 7.14%, INN offers an attractive income stream for investors. The company's relatively high P/E ratio of 299.48 suggests investor expectations of future earnings growth. Key catalysts include the continued recovery of the travel industry, strategic acquisitions to expand the portfolio, and effective cost management to improve profitability. As travel demand rebounds, Summit's revenue per available room (RevPAR) is expected to increase, driving higher earnings and shareholder value.
Key Highlights
- Summit Hotel Properties operates as a REIT, providing investors with a consistent income stream through dividends.
- The company's portfolio consists of 72 hotels with 11,288 guestrooms, primarily in the Upscale segment of the lodging industry.
- Summit's hotels are located across 23 states, providing geographic diversification and mitigating regional economic risks.
- The company's dividend yield is 7.14%, making it an attractive investment for income-seeking investors.
- Summit's market capitalization is $0.49 billion, reflecting its size and significance within the REIT sector.
Competitors
Strengths
- Portfolio of premium-branded hotels.
- Geographic diversification across 23 states.
- Efficient operating model.
- Attractive dividend yield.
Weaknesses
- High P/E ratio may indicate overvaluation.
- Profit margin of 0.2% is relatively low.
- Sensitivity to economic cycles and travel demand.
- Reliance on third-party hotel brands.
Catalysts
- Ongoing: Recovery of the travel and tourism industry, leading to increased occupancy rates and RevPAR.
- Ongoing: Strategic acquisitions of additional premium-branded hotels to expand the portfolio.
- Ongoing: Implementation of cost-saving measures to improve profitability.
- Upcoming: Potential increase in dividend payments as earnings improve.
- Upcoming: Positive economic data indicating strong GDP growth and consumer confidence.
Risks
- Potential: Economic recession that reduces travel demand and hotel occupancy rates.
- Potential: Increased competition from alternative lodging options such as Airbnb.
- Potential: Rising interest rates that increase borrowing costs and reduce profitability.
- Ongoing: Geopolitical instability and security concerns that discourage travel.
- Ongoing: Dependence on third-party hotel brands and their reputation.
Growth Opportunities
- Expanding the Portfolio Through Strategic Acquisitions: Summit can grow by acquiring additional premium-branded hotels in high-growth markets. The market for hotel acquisitions is estimated to be worth billions of dollars annually. By carefully selecting properties that align with its existing portfolio and operational expertise, Summit can increase its revenue base and market share. Timeline: Ongoing, with potential acquisitions occurring throughout 2026 and beyond.
- Enhancing Guest Experiences with Technology: Investing in technology to improve the guest experience can drive higher occupancy rates and revenue per available room (RevPAR). This includes implementing mobile check-in/check-out, personalized service offerings, and enhanced Wi-Fi connectivity. The market for hospitality technology is expected to reach $25 billion by 2028. Timeline: Ongoing, with incremental technology upgrades implemented over the next 1-3 years.
- Capitalizing on the Recovery of Business Travel: As business travel rebounds following the pandemic, Summit can attract corporate clients by offering tailored services and amenities. This includes providing meeting spaces, business centers, and high-speed internet access. The business travel market is projected to reach $1.4 trillion by 2028. Timeline: Ongoing, with a focus on attracting corporate clients in 2026 and beyond.
- Improving Operational Efficiency Through Cost Management: Implementing cost-saving measures can improve profitability and increase shareholder value. This includes optimizing staffing levels, reducing energy consumption, and negotiating favorable contracts with suppliers. The potential cost savings from operational efficiency improvements can be significant, potentially increasing profit margins by 1-2%. Timeline: Ongoing, with continuous monitoring and optimization of operational expenses.
- Developing New Hotels in Underserved Markets: Identifying and developing new hotels in underserved markets can provide a first-mover advantage and generate attractive returns. This requires careful market research and analysis to identify areas with strong demand and limited supply. The market for new hotel development is estimated to be worth billions of dollars annually. Timeline: Long-term, with potential development projects commencing in 2027 and beyond.
Opportunities
- Strategic acquisitions to expand the portfolio.
- Capitalizing on the recovery of business travel.
- Enhancing guest experiences with technology.
- Developing new hotels in underserved markets.
Threats
- Economic downturns that reduce travel demand.
- Increased competition from other hotel REITs and operators.
- Rising interest rates that increase borrowing costs.
- Geopolitical instability and security concerns.
Competitive Advantages
- Strong Brand Affiliations: Partnering with well-known hotel brands provides a competitive advantage in attracting customers.
- Geographic Diversification: Owning hotels in multiple states reduces exposure to regional economic downturns.
- Efficient Operating Model: Focus on cost management and operational efficiency improves profitability.
- REIT Structure: Provides a tax advantage and allows for consistent dividend payments to shareholders.
About
Summit Hotel Properties, Inc. was established to capitalize on opportunities within the hospitality real estate sector, specifically focusing on premium-branded hotels. The company operates as a publicly traded real estate investment trust (REIT), allowing it to access capital markets for acquisitions and development. Summit's strategy centers around owning hotels with efficient operating models, primarily within the Upscale segment of the lodging industry. These hotels typically operate under well-known brands, providing a level of consistency and quality that appeals to both business and leisure travelers. The company's portfolio, as of November 3, 2020, consisted of 72 hotels, with 67 being wholly owned. These properties encompass a total of 11,288 guestrooms and are strategically located across 23 states. This geographic diversification helps to mitigate risk associated with regional economic fluctuations and demand patterns. Summit's focus on premium brands allows it to command higher average daily rates (ADR) and occupancy rates compared to lower-tier hotels. The REIT structure mandates the distribution of a significant portion of its taxable income to shareholders as dividends, making it an attractive investment for income-seeking investors. The company continues to evaluate opportunities to expand its portfolio through strategic acquisitions and development projects, further solidifying its position in the upscale lodging market.
What They Do
- Owns and operates a portfolio of premium-branded hotels.
- Focuses on the Upscale segment of the lodging industry.
- Manages hotel properties to maximize occupancy and revenue.
- Acquires existing hotels to expand its portfolio.
- Develops new hotels in strategic locations.
- Distributes a significant portion of its taxable income to shareholders as dividends.
- Provides lodging services to business and leisure travelers.
Business Model
- Generates revenue from room rentals, food and beverage sales, and other ancillary services.
- Operates as a REIT, allowing it to avoid corporate income taxes by distributing income to shareholders.
- Finances acquisitions and development projects through debt and equity offerings.
Industry Context
Summit Hotel Properties operates within the REIT - Hotel & Motel industry, which is influenced by macroeconomic factors such as GDP growth, employment rates, and consumer confidence. The industry is highly competitive, with numerous REITs and hotel operators vying for market share. Trends include increasing demand for experiential travel, the growing importance of technology in enhancing guest experiences, and the rise of alternative lodging options such as Airbnb. Summit's focus on the Upscale segment allows it to cater to a more affluent clientele, potentially insulating it from some of the price competition in the lower-tier segments. The company competes with other hotel REITs and operators for acquisitions and development opportunities.
Key Customers
- Business travelers attending meetings, conferences, and events.
- Leisure travelers on vacation or weekend getaways.
- Group travelers, including tour groups and sports teams.
- Government and military personnel on official travel.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $177M | -$7M | $-0.06 |
| Q2 2025 | $193M | $3M | $0.03 |
| Q1 2025 | $184M | $-57,000 | $-0.00 |
| Q4 2024 | $173M | $5M | $0.05 |
Source: Company filings
Chart & Info
Price Chart
Summit Hotel Properties, Inc. (INN) stock price: $4.50 (+0.00, +0.00%)
Why Bull
- •Recent insider buying suggests confidence in the company's future performance and strategic direction.
- •Positive community sentiment indicates growing belief in the company's long-term value and potential for growth.
- •The market perceives the company as undervalued, presenting an opportunity for potential gains as its true worth is recognized.
- •Recent developments in the hospitality sector suggest a favorable environment for the company's operations and revenue growth.
Why Bear
- •Recent insider selling might indicate a lack of confidence in the short-term prospects or an intention to diversify holdings.
- •Negative community sentiment reflects concerns about the company's ability to navigate current market challenges.
- •Market perception suggests the company is overvalued, potentially leading to a correction in its stock price.
- •Recent developments in the hospitality sector indicate potential headwinds for the company's performance and profitability.
Latest News
-
Four Corners Property Trust (FCPT) Meets Q4 FFO Estimates
Yahoo! Finance: INN News · Feb 11, 2026
-
NETSTREIT (NTST) Matches Q4 FFO Estimates
Zacks · Feb 10, 2026
-
NETSTREIT (NTST) Matches Q4 FFO Estimates
Yahoo! Finance: INN News · Feb 10, 2026
-
Innocan Pharma Announces LPT-CBD demonstrates Pain Relief over Placebo-Results from a randomized blinded clinical study in Dogs
Yahoo! Finance: INN News · Feb 9, 2026
Technical Analysis
Rationale
AI-generated technical analysis for INN including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for INN.
Make a Prediction
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Current price: $4.50
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for INN.
Price Targets
Median: $5.00 (+14.9% from current price)
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 2/100
Revenue declined -0.6% YoY, signaling shrinking demand or market headwinds.
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Gross Margin 6/100
Gross margin of 33.8% is acceptable but leaves limited room for R&D and marketing investment.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Limited cash of $41M could constrain flexibility; watch for dilution risk or debt issuance.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 10/100
Daily turnover of 0.71% indicates healthy liquidity with smooth entry/exit for investors.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates INN's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
Four Corners Property Trust (FCPT) Meets Q4 FFO Estimates
NETSTREIT (NTST) Matches Q4 FFO Estimates
NETSTREIT (NTST) Matches Q4 FFO Estimates
Innocan Pharma Announces LPT-CBD demonstrates Pain Relief over Placebo-Results from a randomized blinded clinical study in Dogs
Frequently Asked Questions
What does Summit Hotel Properties, Inc. do?
Summit Hotel Properties, Inc. operates as a real estate investment trust (REIT) that specializes in owning and managing a portfolio of premium-branded hotels, primarily in the Upscale segment of the lodging industry. The company's business model revolves around generating revenue from room rentals, food and beverage sales, and other ancillary services offered at its hotels. As a REIT, Summit distributes a significant portion of its taxable income to shareholders as dividends, making it an attractive investment for income-seeking investors. The company focuses on maximizing occupancy rates and revenue per available room (RevPAR) to drive profitability and shareholder value.
Is INN stock a good buy?
INN stock presents a mixed investment profile. The company's focus on the Upscale segment of the lodging industry and its attractive dividend yield of 7.14% are positive factors. However, the relatively high P/E ratio of 299.48 suggests that the stock may be overvalued. Investors should consider the potential for future earnings growth, driven by the recovery of the travel industry and strategic acquisitions. A balanced approach, considering both the potential upside and downside risks, is essential before making an investment decision. Monitoring key metrics such as RevPAR, occupancy rates, and cost management is crucial for assessing the company's performance.
What are the main risks for INN?
Summit Hotel Properties faces several risks, including economic downturns that could reduce travel demand and hotel occupancy rates. Increased competition from alternative lodging options such as Airbnb also poses a threat. Rising interest rates could increase borrowing costs and reduce profitability. Geopolitical instability and security concerns could discourage travel, impacting the company's revenue. Furthermore, Summit's dependence on third-party hotel brands exposes it to reputational risks associated with those brands. Effective risk management and mitigation strategies are crucial for the company's long-term success.
Is INN a good stock to buy?
Whether INN is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the INN MoonshotScore?
The MoonshotScore for INN is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is INN data updated?
INN stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to INN is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for INN?
Growth catalysts for Summit Hotel Properties, Inc. (INN) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes Summit Hotel Properties, Inc.'s specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are INN's main competitors?
Summit Hotel Properties, Inc. (INN) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether INN has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about INN?
Wall Street analyst coverage for INN includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is INN's market cap?
Market capitalization (market cap) for INN is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows INN's current market cap alongside enterprise value and other valuation metrics.
How has INN stock performed recently?
INN's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing INN's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in INN?
Key risk categories for INN include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures INN's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling INN?
Insider trading activity for INN tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
Is INN a good stock for beginners?
Summit Hotel Properties, Inc. (INN) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is INN for first-time investors?
Every stock carries risk, including Summit Hotel Properties, Inc. (INN). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like INN.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Financial data is based on information available as of 2020 and may not reflect current market conditions.
- Forward-looking statements are subject to risks and uncertainties.