Revenue growth was flat at 3.2% in Q2 2026, but NOI margin recovered to 36.5% from a -139.4% impairment-driven trough, while FFO per share rose 11.5% to $0.42, though gross margin remains deeply negative at -7.7%.
Summit Hotel Properties, Inc. (INN) annual income statement — 18-year revenue, gross profit & net income history
| 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 | 736.15M | 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 % | 1.24% | -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 | 863.47M | 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) | -127.32M | -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 % | -17.3% | -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 | -192.31M | -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 | 32.23M | 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 | 250.53M | 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 % | 34.03% | 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 | 185.54M | 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 % | 25.2% | 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 | 64.99M | 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 % | 8.83% | 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 | 3M | 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 | -65.78M | -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 | -12.14M | -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 % | -1.65% | -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 | -1.63M | 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 % | 13.41% | -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 | -7.17M | -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 % | -0.97% | -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 % | -183.28% | -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) | 178.37M | 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 % | 24.23% | 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 % | 49.2% | -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 | 1.68 | 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 % | 2.99% | 27.52% | 19.4% | 32.37% | 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) | -0.07 | -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 % | 24.81% | -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 | 106.18M | 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 |
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.
Key Metrics
Top Statement Risk
Negative gross margin persists
Metrics are mathematically derived from official filings.
RevPAR Acceleration Amid Flat Revenue
Despite flat TTM revenue, Q2 2026 pro forma RevPAR rose 5.0% with ADR up 7.1%, suggesting pricing power. According to recent SEC filings, this rate-led growth may signal a turning point.
Revenue growth has been essentially flat over the trailing twelve months (-0.3%), yet the most recent quarter shows a 3.2% year-over-year increase, driven by a 7.1% jump in average daily rates. This divergence suggests that the company is gaining pricing power, likely due to improved demand in its select-service segment. However, the sustainability of this trend is uncertain given the cyclicality of hotel demand and the potential for economic slowdown.
NOI Margin Volatility Masks Core Stability
NOI margin swung from -139.4% in Q4 2025 to 36.5% in Q2 2026, reflecting one-time impairments. Excluding these, margins hover near 35%, as reported in financial statements, indicating stable property-level profitability.
The extreme negative NOI margin in Q4 2025 is clearly an anomaly, likely due to a large impairment charge. Excluding that quarter, NOI margins have been remarkably consistent, ranging from 30.6% to 37.7% over the past two years. This stability suggests that the select-service model is effective in controlling operating costs, though investors should monitor labor and insurance cost pressures that could erode margins going forward.
FFO Per Share Volatility Raises Quality Concerns
FFO per share swung from $0.68 in Q4 2025 to $0.28 in Q1 2026, with Q2 2026 at $0.42. Based on reported figures, this volatility suggests non-recurring items may be distorting core earnings.
The wide fluctuations in FFO per share, including a 74.3% growth in Q4 2025 followed by a 20.1% decline in Q1 2026, indicate that reported FFO may be influenced by one-time gains or losses, such as asset sales or impairments. The Q2 2026 FFO of $44.9M appears more normalized, but the inconsistency across quarters warrants caution. Investors should focus on AFFO, which adjusts for recurring capital expenditures, to assess sustainable cash flow.
Depreciation Distorts GAAP Earnings
GAAP net income remains negative or minimal despite positive FFO, as depreciation charges are substantial. As reported in financial statements, this gap highlights the importance of FFO over net income for hotel REITs.
The company's net income has been negative in most quarters, even when FFO is positive, due to large non-cash depreciation expenses. For example, in Q2 2026, net income was $8.5M while FFO was $44.9M, a difference of over $36M. This underscores that GAAP earnings are not a reliable indicator of economic performance for hotel REITs. Investors should also consider the adequacy of FF&E reserves, which represent the cash needed to maintain property quality.
Rate-Led Growth Drives Same-Store Gains
Pro forma RevPAR increased 5.0% year-over-year in Q2 2026, with ADR up 7.1% and occupancy flat. According to management commentary, this rate-led growth indicates pricing power and supports margin expansion.
The 7.1% increase in average daily rate, coupled with flat occupancy, suggests that the company is able to push rates without sacrificing demand, a positive sign for same-store revenue growth. This trend, if sustained, could lead to improved flow-through to NOI and FFO. However, the flat occupancy may indicate that demand is not yet strong enough to fill rooms at higher rates, and investors should monitor whether this pricing power is durable.
Negative Gross Margin Undermines Earnings Quality
Despite positive FFO, gross margin is deeply negative at -7.7%, and net margin is -1.1%. This suggests that revenue growth is not translating to bottom-line profitability, warranting further investigation.
The reported gross margin of -7.66% is highly unusual and likely reflects the inclusion of depreciation and amortization in cost of goods sold, which is not standard for REITs. However, even operating margin of 8.35% is below peers like APLE (17.7%) and CLDT (9.0%), indicating that INN's cost structure may be less efficient. The Q2 2026 EPS beat may be driven by non-operating items, and the flat TTM revenue growth raises questions about the sustainability of the recent RevPAR acceleration. Investors should scrutinize the quality of earnings and the potential for one-time gains to inflate FFO.