AFFO of $21.3M covered dividends 1.13x in Q2 2026, but CapEx volatility and a $10.4M working capital tailwind suggest distributable cash flow may be overstated.
Summit Hotel Properties, Inc. (INN) cash flow statement — 18-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 |
|---|
| Cash from Operations | 157.78M | 149.03M | 166.32M | 153.64M | 169.62M | 66.05M | -42.05M | 148.48M | 161.65M | 146.92M | 137.94M | 132.22M | 102.14M | 72.44M | 34.7M | 24.15M | 10.42M | 9.11M | 26.81M |
| Operating CF Growth % | -7.01% | -10.4% | 8.25% | -9.42% | 156.79% | 257.07% | -128.32% | -8.15% | 10.02% | 6.52% | 4.33% | 29.45% | 41.01% | 108.73% | 43.72% | 131.65% | 14.45% | -66.03% | - |
| Operating CF / Revenue % | 21.43% | 20.43% | 22.73% | 20.87% | 25.1% | 18.25% | -17.94% | 27.03% | 28.5% | 28.51% | 29.1% | 28.53% | 25.32% | 24.23% | 13.58% | 17.98% | 7.68% | 7.51% | 19.84% |
| Net Income | -7.17M | -11.68M | 38.89M | -9.49M | 1.22M | -65.57M | -149.25M | 82.35M | 91.13M | 99.52M | 108.26M | 125.26M | 20.92M | 5.9M | -2.27M | -10.38M | -20.92M | -16.31M | 13.08M |
| Depreciation & Amortization | 148.31M | 149.61M | 146.44M | 156.83M | 150.16M | 110.31M | 109.62M | 99.44M | 101.01M | 85.93M | 72.41M | 64.05M | 65.33M | 53.14M | 34.87M | 29.85M | 27.3M | 24.24M | 23.03M |
| Stock-Based Compensation | 7.51M | 8.79M | 8.13M | 7.74M | 8.45M | 10.68M | 6.48M | 6.22M | 6.67M | 5.89M | 4.22M | 4.75M | 3.52M | 2.12M | 1.21M | 479.56K | 0 | 0 | 0 |
| Other Non-Cash Items | 7.31M | 3.08M | -29.97M | -2.5M | -3.64M | -97K | 6.76M | -41.53M | -39.3M | -41.15M | -46.95M | -60.94M | 8.85M | 4.78M | 229K | 36.03K | 6.52M | 7.47M | -8.22M |
| Working Capital Changes | 7.63M | -442K | 2.07M | 672K | 13.49M | 10.73M | -17.72M | 2.01M | 2.58M | -4.15M | 2.39M | -967K | 3.65M | 2.54M | 2.47M | 6.35M | -2.47M | -6.29M | -1.08M |
| Cash from Investing | -17.19M | -42.44M | -71.5M | -101.96M | -290.51M | -74.24M | -30.71M | -182.16M | -63.06M | -515.52M | -154.44M | -131.11M | -200.55M | -467.43M | -233M | -83.49M | -3.17M | -19.05M | 3.47M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 204.8M | 0 | 0 | 68.71M | 0 | 0 | -244.71M | -236.52M | -8.23M | -441.57M | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -1.41M | 0 | 0 | 0 | -288.9M | 0 | 0 | -290.92M | -100.68M | -631.56M | -275.22M | -239.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 12.01M | 0 | 0 | 0 | 1.1M | 0 | 0 | 2.3M | 200K | 32.5M | 17.86M | 1.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -4.17M | -42.44M | -71.5M | 33.06M | -131.04M | -53.89M | -30.71M | 97.01M | -63.06M | -515.52M | -154.44M | -131.11M | -192.32M | -464.63M | -233M | 45.56K | -395.16K | 2.37M | 23M |
| Cash from Financing | -146.35M | -113.73M | -94.23M | -65.72M | 85.76M | 66.24M | 41.83M | 30.96M | -92.05M | 370.45M | 21.88M | -10.36M | 90.28M | 427.72M | 201.75M | 61.9M | -7.52M | 31.65K | -19.9M |
| Dividends Paid | 596K | -57.79M | -55.68M | -45.78M | -28.39M | -15.52M | -33.76M | -90.78M | -92.25M | -85.64M | -66.71M | -57.6M | -56.55M | -47.59M | -23.07M | -19.21M | -535.26K | 0 | 0 |
| Common Dividends | 5.33M | -38.99M | -36.88M | -45.78M | -10.05M | -15.52M | -18.83M | -90.78M | -92.25M | -85.64M | -66.47M | -57.29M | -56.07M | -46.47M | -23.07M | -19.21M | -535.26K | -12.27M | 0 |
| Debt Issuance (Net) | -2M | -1000K | -1000K | -1000K | -398K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | 1000K |
| Share Repurchases | 10.81M | -17.64M | -939K | -1.39M | -2.46M | -2.69M | -469K | -839K | -2.72M | -961K | -1.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -123.56M | -34.43M | -2.94M | -1.27M | 117M | 104.62M | -2.7M | 64.87M | -3.98M | 241.49M | -1.95M | -3.01M | -938K | 4.08M | -2.39M | -4.28M | 0 | 14.13M | -21.39M |
| Net Change in Cash | -5.76M | -7.15M | 590K | -14.04M | -35.14M | 58.05M | -30.94M | -2.72M | 6.55M | 1.85M | 5.37M | -9.26M | -8.13M | 32.73M | 3.44M | 2.56M | -261.81K | -9.91M | 10.38M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 50.43M | 48.36M | 47.77M | 61.81M | 96.94M | 38.9M | 69.83M | 72.56M | 66.01M | 34.69M | 29.33M | 38.58M | 46.71M | 13.98M | 10.54M | 7.98M | 8.24M | 18.15M | 7.78M |
| Cash at End | 42.46M | 41.21M | 48.36M | 47.77M | 61.81M | 96.94M | 38.9M | 69.83M | 72.56M | 36.55M | 34.69M | 29.33M | 38.58M | 46.71M | 13.98M | 10.54M | 7.98M | 8.24M | 18.15M |
| Free Cash Flow | 115.08M | 73.55M | 77.02M | 153.64M | 93.15M | 66.05M | -42.05M | 89.21M | 95.04M | 109.73M | 95.5M | 89.02M | 59.45M | 69.64M | -5.21M | -59.39M | 7.65M | -12.32M | 7.28M |
| FCF Growth % | -34.12% | -4.5% | -49.87% | 64.95% | 41.02% | 257.07% | -147.14% | -6.14% | -13.39% | 14.9% | 7.28% | 49.73% | -14.62% | 1437.61% | 91.23% | -875.94% | 162.14% | -269.27% | - |
| FCF / Revenue % | 15.63% | 10.08% | 10.52% | 20.87% | 13.79% | 18.25% | -17.94% | 16.24% | 16.75% | 21.29% | 20.15% | 19.21% | 14.74% | 23.29% | -2.04% | -44.22% | 5.64% | -10.16% | 5.39% |
Quick answers to the most common questions about buying INN stock.
Summit Hotel Properties, Inc. (INN) generated $149.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Summit Hotel Properties, Inc. (INN) generated $73.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Summit Hotel Properties, Inc. (INN) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Summit Hotel Properties, Inc. (INN) returned $57.8M to shareholders via cash dividends and spent $17.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Negative gross margin persists
Metrics are mathematically derived from official filings.
AFFO Coverage Strengthens
In Q2 2026, AFFO of $21.3M covered dividends 1.13x, up from 0.89x in Q1, as reported in financial statements, suggesting improving distributable cash flow.
The dividend payout ratio based on AFFO improved to 89% in Q2 2026 from 112% in Q1, indicating that internally generated cash flow is now nearly sufficient to cover the dividend without external sources. However, the 2025Q4 AFFO of $53.7M was unusually high, likely due to one-time items, so investors should monitor whether the Q2 level is sustainable. The retained AFFO buffer remains thin, leaving limited room for dividend increases or unexpected capex.
Capex Volatility Masks Maintenance Needs
CapEx swung from $39.9M inflow in 2024Q3 to -$23.6M in 2026Q2, as per SEC filings, indicating lumpy investment patterns that complicate AFFO comparability.
The negative CapEx in recent quarters reflects significant property improvements, likely tied to brand-mandated PIPs, while the positive figure in 2024Q3 suggests asset sales proceeds. This volatility makes quarterly AFFO comparisons unreliable; investors should focus on trailing twelve-month AFFO to smooth out these swings. The recurring maintenance capex appears to be running below the level needed to keep the portfolio competitive, which could pressure future RevPAR if deferred.
Working Capital Swings Signal Timing Effects
OCF exceeded FFO by $10.4M in Q2 2026, as reported in financial statements, suggesting favorable working capital timing that may not persist.
The positive gap between OCF and FFO in Q2 2026 indicates that cash collections outpaced accrual-based earnings, possibly due to timing of receivables or payables. However, in 2025Q4, OCF was $28.5M versus FFO of $72.8M, a massive negative gap, implying significant non-cash items or working capital outflows. These swings suggest that quarterly cash flow is not a reliable indicator of underlying performance; investors should normalize for working capital changes.
Dividend Not Yet Self-Funded
In Q2 2026, dividends of $18.9M exceeded AFFO of $21.3M by only $2.4M, as per financial statements, indicating near self-funding but still reliant on external sources.
The dividend coverage by AFFO improved to 1.13x in Q2 2026, but the company still paid out more than its AFFO in Q1 2026 (0.89x coverage). This suggests that the dividend is not yet fully covered by internally generated cash flow, and the company may need to rely on its ATM program or debt issuance to bridge the gap. The recent EPS beat and raised guidance may support future AFFO growth, but investors should monitor whether coverage sustainably exceeds 1.0x.
Depreciation Gap Distorts Earnings
FFO/NI ratio of 6.52 in Q2 2026, as reported in SEC filings, highlights the massive non-cash depreciation charges that depress GAAP net income.
The wide gap between FFO and net income underscores the importance of using FFO/AFFO rather than GAAP earnings to evaluate Summit's cash-generating ability. In Q2 2026, net income was $8.5M while FFO was $44.9M, a difference of $36.4M, primarily due to depreciation and amortization. This distortion is typical for hotel REITs but is particularly pronounced here, suggesting that the market should focus on cash-based metrics for valuation.
Cash Flow Hides Maintenance Realities
Despite positive FFO, negative gross margin of -7.7% and volatile AFFO, as per financial statements, suggest that reported cash flow may overstate true distributable income.
The company's negative gross margin indicates that property-level revenues are insufficient to cover operating expenses and depreciation, which is unusual for a hotel REIT. While FFO and AFFO are positive, they may not fully capture the capital expenditures required to maintain brand standards, especially given the lumpy CapEx pattern. Investors should scrutinize the sustainability of AFFO and whether it truly represents free cash flow after all necessary maintenance and leasing costs.