INN

Summit Hotel Properties is a select-service lodging REIT whose top line has effectively plateaued: FY2025 revenue of $729M was down 0.3% YoY and is actually below FY2023's $736M, signaling that the post-pandemic RevPAR tailwind is spent. More worrying is the earnings trajectory — operating income fell 36.5% to $65.7M and the company swung from $38.9M of net income in FY2024 to a $11.7M loss in FY2025, a 130% YoY deterioration. The 10-K's MD&A flags the usual REIT levers (impairment triggers tied to 'macroeconomic trends, trends related to demand for travel and lodging') and the risk-factor list leads with 'achieving revenue and net income growth' and 'leverage and the corresponding risk of default,' which is exactly what the numbers are showing.

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