Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Summit Hotel Properties's
Operating Income
for the
three
months ended in Mar. 2026 was €15.4 Mil. Summit Hotel Properties's Interest Expense for the
three
months ended in Mar. 2026 was €-17.7 Mil.
Summit Hotel Properties's interest coverage for the quarter that ended in Mar. 2026 was 0.87.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Summit Hotel Properties Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Summit Hotel Properties's Interest Coverage or its related term are showing as below:
FRA:SDP'
s Interest Coverage Range Over the Past 10 Years
Min: 0.73 Med: 1.42 Max: 3.08
Current: 0.73
FRA:SDP's Interest Coverage is ranked worse than 91.43% of 700
companies
in the REITs industry
Industry Median: 3.095
vs FRA:SDP: 0.73
Summit Hotel Properties (FRA:SDP) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Summit Hotel Properties Interest Coverage Related Terms
Summit Hotel Properties Interest Coverage Historical Data
* Premium members only.
The historical data trend for Summit Hotel Properties's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:SDP vs CLDT, BHR, SVC: Interest Coverage Comparison
For the REIT - Hotel & Motel subindustry, Summit Hotel Properties's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Summit Hotel Properties Interest Coverage vs REITs Industry
For the REITs industry and Real Estate sector, Summit Hotel Properties's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Summit Hotel Properties's Interest Coverage falls into.
Summit Hotel Properties Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Summit Hotel Properties (FRA:SDP) has a Interest Coverage of 0.87 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Summit Hotel Properties and its competitors. This is 39% below median its historical median of 1.42. Over the past decade, Summit Hotel Properties' Interest Coverage has ranged from 0.73 to 3.08. According to the industry distribution chart, Summit Hotel Properties ranks #640 out of 700 companies in the REITs industry, placing it in the top 91.4%.
Is Summit Hotel Properties' Interest Coverage too high?
Summit Hotel Properties' current Interest Coverage of 0.87 is 39% below median its 10-year median of 1.42. Over the past 10 years, this metric has ranged from a low of 0.73 to a high of 3.08. The REITs industry median Interest Coverage is 3.10. Summit Hotel Properties' value of 0.87 is 71.9% below this industry median. Based on the distribution chart, Summit Hotel Properties ranks #640 out of 700 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Summit Hotel Properties has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does Summit Hotel Properties' Interest Coverage compare to CLDT and BHR?
According to the REITs industry distribution chart, Summit Hotel Properties ranks #640 out of 700 companies for Interest Coverage. This places Summit Hotel Properties in the lower half of its industry. The industry median Interest Coverage is 3.10. Summit Hotel Properties' value of 0.87 is 71.9% below this benchmark. Historically, Summit Hotel Properties' own Interest Coverage has ranged from 0.73 to 3.08 over the past decade. While the company's 10-year median is 1.42 vs. the industry median of 3.10, Summit Hotel Properties has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a REITs company?
The median Interest Coverage among REITs companies is 3.10, based on 700 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Summit Hotel Properties's current Interest Coverage of 0.87 is 71.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Summit Hotel Properties and its competitors. For the REITs industry, the median Interest Coverage is 3.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Summit Hotel Properties's current Interest Coverage is 0.87, which is 39% below median its own 10-year median of 1.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Summit Hotel Properties stock overvalued right now?
Summit Hotel Properties (FRA:SDP) has a current Interest Coverage of 0.87. The stock's GF Value™ is €5.13, compared to a current price of €6.05 — trading 17.9% above its estimated fair value. The current Interest Coverage is 0.87, which is 39% below median its 10-year median of 1.42 and 71.9% below the REITs industry median of 3.10. Summit Hotel Properties' overall GF Score™ is 71/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Summit Hotel Properties (FRA:SDP), the current Interest Coverage is 0.87 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Summit Hotel Properties (FRA:SDP) Overvalued in 2026?
Based on GuruFocus' analysis, Summit Hotel Properties stock appears to be overvalued.
The current stock price of €6.05 is trading 17.9% above its estimated GF Value™ of €5.13.
Key valuation signals for FRA:SDP:
Interest Coverage: 0.87 (39% below median its 10-year median of 1.42)
GF Value™: €5.13 vs. price of €6.05 (17.9% above fair value)
Industry Position: 71.9% below the REITs median (#640 of 700)
No single metric tells the full story. See the FRA:SDP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Summit Hotel Properties Inc is a U.S.-based hotel investment company focusing on select-service hotels in the upscale and upper-midscale properties in the U.S. Substantially all of Summit's assets are held and operated by its Operating Partnership, Summit Hotel OP, LP, in which the company holds general and limited partnership interests. The firm has one segment in activities related to investing in real estate. Summit's revenue streams include Room and Other hotel operations revenue. Room comprises the majority of total revenues. The company's hotels are located in various markets, such as corporate offices, retail centers, airports, state capitols, convention centers, and leisure attractions. Summit's hotels operate under brands, including Marriott, Hilton, Hyatt, and Holiday Inn.
71GF Score
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