Summit Hotel Properties came into this print looking like a recovery value story, with the stock up over the past three months but slipping 2.8% today to US$6.49 as investors digested the latest numbers. The headline is simple. Q2 flipped back into the black on a basic earnings per share basis and management backed that up with a higher full year outlook for adjusted funds from operations and revenue per available room.

For a hotel real estate investment trust, that shift in profitability and the guidance lift on operating cash flow are what matter most, not the day one price reaction.

Is Summit Hotel Properties trading at a genuine discount on its 0.9x P/S, or does the recent loss profile justify a lower range for the stock? Compare…