Summit Hotel Properties Inc. Common Stock (INN)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Summit Hotel Properties as a hotel REIT, not a typical Graham net-net. It owns 92 assets, 50 wholly owned, with 14,027 rooms across 24 states, mostly premium-branded upscale hotels. That is a real portfolio, but lodging is cyclical and capital-intensive; brand affiliation and efficient operations help, yet I see no wide moat. The reported numbers are choppy. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $199.0M and net income was $9.7M, or $0.04 per diluted share. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $185.1M and net loss was $5.9M, or $-0.10 per share. For FY2025, ended 2025-12-31, revenue was $729.5M and net loss was $11.7M, or $-0.22 per share; FY2024 produced $38.9M net income and $0.22 per share, while FY2023 lost $28.1M, or $-0.27 per share. Revenue is basically flat across FY2023-FY2025. Because REIT depreciation distorts EPS and P/E, I set aside Graham Number and margin-of-safety work. FFO/AFFO, the right REIT measures, are not in the data, so I lean on dividend yield, leverage, revenue trend, and price-to-book. At the 2026-10-13 close of $6.35, FairStock calculations show P/B 0.79, dividend yield 5.72%, EV/EBITDA 9.34, FCF yield 22.8%, Piotroski 8/9, and Altman Z 0.11. The low price-to-book and high FCF yield are tempting, but leverage is high and Altman is distressed. FairStock labels it a TURNAROUND—a loss in the latest year after earlier profits. I would want evidence that Q2 2026 profit is durable and that debt can be managed.

In plain English: Summit Hotel Properties owns upscale, brand-name hotels in the U.S., with 92 properties and about 14,000 rooms. The business has been up and down: it lost money in fiscal 2025 but made a small profit in the latest quarter. The stock looks inexpensive compared with its accounting value, but the company carries a lot of debt and its profits are not steady.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer