2 models fit Summit Hotel Properties Inc. Common Stock and they disagree: 0 of 2 land within 15% of the average.
Two or more of our models back this value.
Discount(i)Gold80
Valued as a REIT (property company): Price to FFO, Dividend discount, and EV/EBITDA comparison.
ACCE opinionSummit Hotel Properties Inc. Common Stock (INN)
Fair value (2 models)
$8.63
ACCE price target
$6.00
Rating
Undervalued
Horizon
12 months
Fair value published on 21 Oct 2026, 13:04 CEST; previously $8.71 since 17 Oct 2026, 00:00 CEST.
ACCE price target published on 15 Oct 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 13:04 CEST.
Price used: $6.90 at the close on 23 Oct 2026, 22:00 CEST.
Models: Dividend discount and Price to FFO.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
20.0% below
+25.0% to fair value
ACCE score
55
out of 100
Analysts
33% buy
6 covering
P/E
0.0x
forward 40.7x
1-year return
+29.2%
Dividend yield
4.55%
Summit Hotel Properties Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Summit Hotel Properties owns and operates a portfolio of select-service hotels, mostly under Marriott, Hilton and IHG flags, and earns its income from room revenue and per-night rates across those assets. The structural case rests on the select-service segment, which has held up better than full-service and luxury hotels through recent travel cycles, and on a balance sheet that carries no reported earnings yet but a 3.2% revenue growth rate and a 14.4% operating margin. The near-term question is whether that operating margin can translate into positive net income, since trailing P/E is zero and ROE is slightly negative, so the forward P/E of 40.7x is doing a lot of work and rests on expected earnings recovery. At a $692M market cap with no index membership, the stock sits below the threshold that attracts most passive flows, which can keep it mispriced for longer than a larger name would be. The composite score of 52/100 is mid-range, so this merits a deeper look at FFO, debt maturities and RevPAR trends before any conclusion.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Earnings collapse year over year
Earnings fell 78.7% YoY while revenue grew only 3.2%, and the company is loss-making at a -0.7% net margin. Trailing P/E is 0.0, so the earnings base is thin.
moderate
Leverage elevated
Debt/Equity of 1.64 is high for a hotel REIT that is already posting negative ROE of -0.8%. Free cash flow of $74M gives some cushion, but less room for error on refinancing.
moderate
Price above ACCE target
The stock trades 15.0% above the ACCE price target of $6.00, and 20.0% below the model fair value of $8.63. The gap to the target is a reason to size the position cautiously.
AI research notes
AI-assisted·How I use AIWritten Oct 20, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months reached $74M, a real cash cushion for a company whose reported earnings are weak.
The stock trades at a 10.2% free cash flow yield and pays a 4.9% dividend yield, so investors are paid while they wait.
Earnings per share beat expectations by 11.5% in the latest quarter, with 0.29 reported against 0.26 expected.
Why it could disappoint
Net margin is negative at -0.7%, meaning the hotels still lose money after every cost is counted.
Debt to equity of 1.64 leaves the balance sheet heavily reliant on borrowing, which is a risk if hotel demand softens.
Only 2 of 6 analysts rate the stock Buy or Strong Buy, and the stock trades 20.0% below the model fair value of $8.63, which reflects doubt about the business.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 3, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where INN's valuation models land
Price
$6.90
Model fair value
$8.63
Model range
$1.93 to $15.32
Fair value $8.63
Price $6.90
The price sits inside the model range.
Model
Fair value
Upside
Dividend discount
EV/EBITDA comparison
Price to FFO
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Quality
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