Summit Hotel Properties Is Overheating (Downgrade)

Summit Hotel Properties, Inc. delivered Q2 FY26 results with revenue and profitability exceeding analyst expectations, but shares dipped post-earnings. INN has grown revenue and profitability despite a slight reduction in properties and guest rooms, aided by higher RevPAR and cost improvements. The stock has surged 35.9% since last October, now appearing expensive on an EV/EBITDA basis versus peers and carrying significant leverage.