NOI margins have fluctuated between 30.6% and 37.7% over the last ten quarters, reflecting the inherent difficulty in maintaining profitability amidst rising costs.
| 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 |
|---|
| Revenue | 730.05M | 729.47M | 731.78M | 736.13M | 675.7M | 361.93M | 234.46M | 549.35M | 567.27M | 515.38M | 473.94M | 463.45M | 403.47M | 298.96M | 255.47M | 134.28M | 135.64M | 121.2M | 135.11M |
| Revenue Growth % | 0.26% | -0.32% | -0.59% | 8.94% | 86.69% | 54.36% | -57.32% | -3.16% | 10.07% | 8.74% | 2.26% | 14.87% | 34.96% | 17.02% | 90.25% | -1% | 11.91% | -10.29% | - |
| Property Operating Expenses | 666.48M | 785.33M | 472.14M | 478.11M | 437.23M | 254.47M | 206.67M | 349.77M | 341.43M | 190.38M | 174.83M | 173.85M | 156.54M | 120.21M | 104.03M | 94.38M | 66.17M | 59.06M | 57.57M |
| Net Operating Income (NOI) | 63.57M | -55.85M | 259.64M | 258.02M | 238.46M | 107.45M | 27.79M | 199.58M | 225.84M | 324.99M | 299.11M | 289.6M | 246.93M | 178.75M | 151.44M | 39.9M | 69.46M | 62.14M | 77.54M |
| NOI Margin % | 8.71% | -7.66% | 35.48% | 35.05% | 35.29% | 29.69% | 11.85% | 36.33% | 39.81% | 63.06% | 63.11% | 62.49% | 61.2% | 59.79% | 59.28% | 29.72% | 51.21% | 51.27% | 57.39% |
| Operating Expenses | -153.75M | -116.79M | 156.15M | 199.24M | 170.68M | 140.72M | 137.2M | 80.17M | 141.04M | 240.74M | 212.55M | 207.23M | 190.16M | 142.25M | 130.52M | 32.94M | 57.35M | 54.14M | 56.31M |
| G&A Expenses | 33.09M | 32.82M | 31.89M | 50.98M | 30.77M | 29.43M | 20.98M | 23.62M | 40.03M | 19.6M | 19.29M | 21.2M | 19.88M | 8.22M | 6.04M | 6.56M | 25.38M | 30.17M | 34M |
| EBITDA | 241.63M | 210.55M | 249.93M | 209.71M | 217.94M | 72.69M | 209K | 218.85M | 607.67M | 515.38M | 473.36M | 144.06M | 112.48M | 84.43M | 67.17M | 36.57M | 32.94M | 24.74M | 44.26M |
| EBITDA Margin % | 33.1% | 28.86% | 34.15% | 28.49% | 32.25% | 20.08% | 0.09% | 39.84% | 107.12% | 100% | 99.88% | 31.08% | 27.88% | 28.24% | 26.29% | 27.23% | 24.28% | 20.41% | 32.76% |
| Depreciation & Amortization | 186.38M | 149.61M | 146.44M | 150.92M | 150.16M | 105.95M | 109.62M | 99.44M | 482.47M | 431.48M | 390.87M | 64.05M | 65.33M | 51.18M | 49.65M | 29.85M | 27.3M | 24.24M | 23.03M |
| D&A / Revenue % | 25.53% | 20.51% | 20.01% | 20.5% | 22.22% | 29.28% | 46.75% | 18.1% | 85.05% | 83.72% | 82.47% | 13.82% | 16.19% | 17.12% | 19.43% | 22.23% | 20.13% | 20% | 17.04% |
| Operating Income | 55.24M | 60.94M | 103.49M | 58.79M | 67.78M | -33.27M | -109.41M | 119.41M | 125.2M | 83.89M | 82.49M | 80.01M | 47.16M | 33.25M | 17.52M | 6.71M | 5.64M | 496.13K | 21.23M |
| Operating Margin % | 7.57% | 8.35% | 14.14% | 7.99% | 10.03% | -9.19% | -46.66% | 21.74% | 22.07% | 16.28% | 17.4% | 17.26% | 11.69% | 11.12% | 6.86% | 5% | 4.16% | 0.41% | 15.71% |
| Interest Expense | 1000K | 80.69M | 82.63M | 86.8M | 65.58M | 43.37M | 43.3M | 41.03M | 41.94M | 29.69M | 28.09M | 30.41M | 28.52M | 20.14M | 16.47M | 13.19M | 26.36M | 18.32M | 17.03M |
| Interest Coverage | - | 0.87x | 1.36x | 0.71x | 1.07x | -0.55x | -2.41x | 3.04x | 3.15x | 4.41x | 4.80x | 5.14x | 1.74x | 1.81x | 0.44x | 0.51x | 0.15x | 0.03x | 1.84x |
| Non-Operating Income | -69.67M | -8.92M | -9.29M | -2.69M | -2.63M | -9.52M | -4.84M | -5.47M | -6.95M | -46.99M | -2.56M | -76.21M | -986K | -3.22M | 756K | -1.19M | 1.59M | -45.47K | -10.08M |
| Pretax Income | -17.23M | -10.84M | 30.15M | -25.32M | 4.83M | -67.11M | -147.87M | 83.85M | 90.2M | 101.19M | 106.81M | 125.81M | 21.18M | 11.52M | 826K | -6.5M | -20.72M | -16.31M | 14.29M |
| Pretax Margin % | -2.36% | -1.49% | 4.12% | -3.44% | 0.71% | -18.54% | -63.07% | 15.26% | 15.9% | 19.64% | 22.54% | 27.15% | 5.25% | 3.85% | 0.32% | -4.84% | -15.28% | -13.46% | 10.58% |
| Income Tax | -804K | 842K | -8.74M | 2.8M | 3.61M | 1.47M | 1.38M | 1.5M | -922K | 1.67M | -1.45M | 553K | 744K | 4.89M | -1.24M | -2.32M | 202.16K | 18.32M | 826.3K |
| Effective Tax Rate % | 4.67% | -7.77% | -29% | -11.05% | 74.79% | -2.19% | -0.93% | 1.79% | -1.02% | 1.65% | -1.36% | 0.44% | 3.51% | 42.49% | -149.88% | 35.76% | -0.98% | -112.3% | 5.78% |
| Net Income | -16.01M | -7.96M | 43.64M | -9.49M | 1.47M | -65.57M | -143.34M | 82.61M | 90.92M | 99.21M | 107.81M | 124.44M | 20.87M | 5.88M | 2.51M | -2.94M | -20.92M | -16.31M | 13.08M |
| Net Margin % | -2.19% | -1.09% | 5.96% | -1.29% | 0.22% | -18.12% | -61.14% | 15.04% | 16.03% | 19.25% | 22.75% | 26.85% | 5.17% | 1.97% | 0.98% | -2.19% | -15.42% | -13.46% | 9.68% |
| Net Income Growth % | -138.98% | -118.23% | 559.92% | -747.27% | 102.24% | 54.25% | -273.51% | -9.14% | -8.36% | -7.97% | -13.37% | 496.22% | 255.07% | 134.09% | 185.49% | 85.96% | -28.23% | -224.74% | - |
| Funds From Operations (FFO) | 170.37M | 141.65M | 190.08M | 141.44M | 151.63M | 40.38M | -33.72M | 182.06M | 573.39M | 530.7M | 498.68M | 188.49M | 86.2M | 57.06M | 52.16M | 26.92M | 6.38M | 7.93M | 36.11M |
| FFO Margin % | 23.34% | 19.42% | 25.97% | 19.21% | 22.44% | 11.16% | -14.38% | 33.14% | 101.08% | 102.97% | 105.22% | 40.67% | 21.36% | 19.09% | 20.42% | 20.05% | 4.7% | 6.54% | 26.72% |
| FFO Growth % | -15.36% | -25.48% | 34.39% | -6.72% | 275.48% | 219.76% | -118.52% | -68.25% | 8.05% | 6.42% | 164.56% | 118.67% | 51.06% | 9.4% | 93.78% | 322.06% | -19.57% | -78.04% | - |
| FFO per Share | 1.61 | 1.33 | 1.44 | 1.34 | 1.44 | 0.39 | -0.32 | 1.75 | 5.52 | 5.32 | 5.71 | 2.16 | 1.01 | 0.81 | 1.55 | 0.22 | 0.03 | 0.05 | 0.19 |
| FFO Payout Ratio % | 5.84% | 0% | 19.4% | 19.05% | 6.63% | 38.44% | -55.85% | 49.87% | 16.09% | 16.14% | 13.33% | 30.4% | 65.05% | 81.44% | 44.22% | 71.35% | 8.39% | 154.76% | 0% |
| EPS (Diluted) | -0.15 | -0.22 | 0.19 | -0.27 | 0.01 | -0.66 | -1.43 | 0.65 | 0.88 | 0.79 | 1.00 | 1.24 | 0.05 | -0.12 | -0.17 | -0.02 | -0.11 | -0.09 | 0.07 |
| EPS Growth % | -367.5% | -215.79% | 170.37% | -2042.45% | 102.11% | 53.85% | -320% | -26.14% | 11.39% | -21% | -19.35% | 2380% | 141.67% | 29.41% | -620.34% | 78.55% | -17.15% | -233.38% | - |
| EPS (Basic) | - | -0.22 | 0.24 | -0.27 | 0.01 | -0.66 | -1.43 | 0.65 | 0.88 | 0.79 | 1.00 | 1.25 | 0.05 | -0.11 | -0.17 | -0.02 | -0.11 | -0.09 | 0.07 |
| Diluted Shares Outstanding | 105.72M | 106.85M | 132.37M | 105.55M | 105.14M | 104.47M | 104.14M | 103.94M | 103.84M | 99.78M | 87.34M | 87.14M | 85.57M | 70.33M | 33.72M | 124.29M | 185.9M | 173.7M | 185.9M |
High cyclical operating leverage
As reported in quarterly financial filings, INN's FFO per share has exhibited significant volatility, ranging from a low of $0.25 to a high of $0.68, suggesting that the company's core earnings power remains highly sensitive to seasonal demand shifts and the timing of portfolio-level capital events.
The wide variance in FFO per share indicates that investors should be cautious when extrapolating recent performance, as the metric appears heavily influenced by non-recurring items rather than consistent organic growth. The lack of a stable FFO trajectory complicates dividend safety assessments, particularly given the historical fluctuations in payout capacity.
Based on the provided income statement data, NOI margins have fluctuated between 30.6% and 37.7% over the last ten quarters, reflecting the inherent difficulty in maintaining operating efficiency amidst rising labor costs and the fixed-cost nature of the upscale select-service hotel business model.
The compression in NOI margins during recent periods suggests that the company is struggling to pass through inflationary cost increases to guests. This margin sensitivity warrants further investigation into whether the current operating structure can sustain profitability if RevPAR growth fails to outpace the rising cost of property-level labor and insurance.
According to recent SEC filings, INN consistently reports negative GAAP net income despite generating positive NOI, a discrepancy that highlights the massive non-cash depreciation charges inherent in the hotel REIT model and the necessity of focusing on FFO as the primary measure of economic performance.
The persistent gap between GAAP net income and FFO suggests that the company's accounting earnings are not reflective of its actual cash-generating capability. Analysts should monitor the relationship between depreciation charges and recurring maintenance CAPEX to determine if the company is adequately reinvesting in its assets to maintain competitive positioning.
As indicated by the financial data, the reliance on joint venture structures and the presence of preferred equity claims suggest that common shareholders may face significant dilution or subordination, which is not immediately apparent when viewing headline revenue or NOI figures in isolation.
The complexity of the GIC joint venture may obscure the true level of leverage and the actual cash flow available to common equity holders. Investors should monitor whether these partnership structures provide genuine value-add or if they serve to mask the underlying capital intensity required to keep the portfolio competitive.
Quick answers to the most common questions about buying INN stock.
For fiscal year 2025, Summit Hotel Properties, Inc. (INN) reported total revenue of $729.5M. This represents a 439.9% increase compared to $135.1M in 2008.
Summit Hotel Properties, Inc. (INN) reported a net loss of $8.0M for the fiscal year ending 2025.
Summit Hotel Properties, Inc. (INN) reported an operating income of $60.9M, resulting in an operating profit margin of 8.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Summit Hotel Properties, Inc. (INN) generated $-55.9M in gross profit for the year, representing a gross profit margin of -7.7%. This demonstrates the company's core pricing power and production efficiency.