INNSummit Hotel Properties, Inc. (INN) presents a mixed investment profile. Fundamentally, it shows potential for income generation with a solid dividend yield and a recovering revenue base. However, it is currently experiencing negative earnings growth and has a leveraged balance sheet, warranting careful consideration of its debt levels and interest coverage. Technical indicators are mixed, with a short-term bearish trend but longer-term support levels that could provide a floor. The company's positioning within the lodging REIT sector may benefit from a general economic recovery, but interest rate sensitivity remains a key thematic consideration.
The lodging sector is sensitive to economic cycles and interest rate changes. While a recovery in travel demand is a positive theme, rising interest rates could pressure profitability and refinancing costs for REITs.
Summit Hotel Properties shows signs of revenue stabilization and is committed to dividends, but faces challenges with profitability and debt management. Earnings per share have been volatile, with recent quarters showing negative estimates and reported figures. The company's debt level is substantial relative to its market capitalization and cash flow, requiring close monitoring of its ability to service this debt.
Recent technical indicators suggest a bearish short-term trend, with the stock trading below several key moving averages. However, it has recently found support and shows some signs of stabilization, with oscillators suggesting a potential for a rebound. Investors should watch for a break above resistance levels to confirm a trend reversal.
| Factor | Score |
|---|---|
| Lodging Sector Recovery | 75 |
| Interest Rate Sensitivity | 50 |
| Dividend Yield Sustainability | 80 |
| Real Estate Market Trends | 60 |
| Factor | Score |
|---|---|
| Valuation | 65 |
| Profitability | 30 |
| Growth | 60 |
| Balance Sheet Health | 45 |
| Cash Flow | 70 |
| Dividend | 85 |
| Factor | Score |
|---|---|
| Trend Analysis | 40 |
| Momentum | 50 |
| Support & Resistance | 65 |
| Volume | 70 |
| Oscillators | 60 |
Attractive P/E Ratio
The trailing Price-to-Earnings (P/E) ratio of 27.175 is relatively attractive compared to the industry average, suggesting potential undervaluation given its earnings.
Consistent Dividend Payout
The current dividend yield is 5.88%, indicating a solid income stream for investors. Historical dividend payments show a pattern of regular distribution.
Recent Underperformance
The stock has experienced negative performance over several periods, including -18.12% over 6 months and -17.15% Year-to-Date (YTD), indicating a recent downturn or market pressure.
Inconsistent EPS Surprises
Earnings per share (EPS) have shown significant volatility, with large positive surprises (e.g., +611.11% in Q3 2024) followed by substantial negative surprises (e.g., -60.0% in Q2 2025), indicating unpredictability in earnings.
May 2025
16
Ex-Dividend Date
May 2025
30
Next Dividend Date
August 2025
6
Next Earnings Date
H: $0.00
A: $0.00
L: $0.00
H: 197.59M
A: 194.97M
L: 192.92M
Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded lodging facilities with efficient operating models primarily in the upscale segment of the lodging industry. As of April 30, 2025, the Company's portfolio consisted of 97 assets, 53 of which are wholly owned, with a total of 14,555 guestrooms located in 25 states.
6.69 USD
The 39 analysts offering 1 year price forecasts for INN have a max estimate of 9.00 and a min estimate of 5.00.