----

----

| [x] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----|-----------------------------------------------------------------------------------------|

|   | For the quarterly period ended March 31, 2011 |
|--------|-----------------------------------------------|

| [  ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------------|------------------------------------------------------------------------------------------|

|   | For the transition period from _______________ to _______________ |
|--------|-------------------------------------------------------------------|

| Maryland (Summit Hotel Properties, Inc.) | 27-2962512 (Summit Hotel Properties, Inc.) |
|------------------------------------------|--------------------------------------------|
| Delaware (Summit Hotel OP, LP)           | 27-2966616 (Summit Hotel OP, LP)           |
| (State or other jurisdiction             | (I.R.S. Employer Identification No.)       |
| of incorporation or organization)        |                                       |

| Summit Hotel Properties, Inc.  [x] Yes  [  ]  No | Summit Hotel OP, LP  [x] Yes  [  ]  No |
|--------------------------------------------------------------------------------|----------------------------------------------------------------------|

| Summit Hotel Properties, Inc.  [  ] Yes  [  ]  No | Summit Hotel OP, LP  [  ] Yes  [  ]  No |
|--------------------------------------------------------------------------------------|----------------------------------------------------------------------------|

----

| Summit Hotel Properties, Inc.                |                                           |
|----------------------------------------------|------------------------------------------------|
| Large accelerated filer  [  ] | Accelerated filer  [  ]         |
| Non-accelerated filer [x]                    | Smaller reporting company  [  ] |

| Large accelerated filer  [  ] | Accelerated filer  [  ]         |
|----------------------------------------------|------------------------------------------------|
| Non-accelerated filer [x]                    | Smaller reporting company  [  ] |

| Summit Hotel Properties, Inc.  [ ] Yes  [x]  No | Summit Hotel OP, LP  [ ] Yes  [x]  No |
|--------------------------------------------------------------------------|----------------------------------------------------------------|

----

|   | ● | “Summit REIT” mean Summit Hotel Properties, Inc., a Maryland corporation; |
|--------|---------|---------------------------------------------------------------------------------------|

|   | ● | “Summit OP” or “our operating partnership” mean Summit Hotel OP, LP, a Delaware limited partnership; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------|

|   | ● | “the LLC” mean Summit Hotel Properties, LLC, our predecessor; and |
|--------|---------|-------------------------------------------------------------------------------|

|   | ● | “we,” “our,” “us,” “our company” or “the company” mean Summit REIT, Summit OP and their consolidated subsidiaries taken together as one enterprise. When this report discusses or refers to activities occurring prior to February 14, 2011, the date on which our operations commenced, these references refer to the LLC, our predecessor. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | enhances investors’ understanding of Summit REIT and Summit OP by enabling investors to view the business as a whole in the same manner as management views and operates the business; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both Summit REIT and Summit OP; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | creates time and cost efficiencies for both companies through the preparation of one combined report instead of two separate reports. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ● | “the LLC” include Summit Group of Scottsdale, Arizona, LLC (“Summit of Scottsdale”); |
|--------|---------|--------------------------------------------------------------------------------------------------------------|

|   | ● | “Summit TRS” refer to Summit Hotel TRS, Inc., a Delaware corporation; |
|--------|---------|-----------------------------------------------------------------------------------|

|   | ● | “Summit TRS II” refer to Summit Hotel TRS II, Inc., a Delaware corporation; |
|--------|---------|-----------------------------------------------------------------------------------------|

|   | ● | “our TRSs” refer to Summit TRS and Summit TRS II and any other taxable REIT subsidiaries (“TRSs”) that we may form in the future; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | “our TRS lessees” refer to our TRSs and the wholly owned subsidiaries of our TRSs that lease our hotels from our operating partnership or subsidiaries of our operating partnership; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | “The Summit Group” refer to The Summit Group, Inc., our predecessor’s hotel management company, Company Manager and Class C Member, which is wholly owned by our Executive Chairman. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item 1.                                                                                        | Financial Statements.                                                                        |   |   | 1      |   |
|------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|                                                                                           |                                                                                         |
| Summit Hotel Properties, Inc. and Summit Hotel Properties, LLC                                 |                                                                                         |
| Condensed Consolidated Balance Sheets (unaudited) — March 31, 2011 and December 31, 2010 |                                                                                         |
| Condensed Consolidated Statements of Operations (unaudited) — Three months ended         |                                                                                         |
| March 31, 2011 and 2010                                                                        |                                                                                         |
| Condensed Consolidated Statements of Changes in Equity (unaudited) — Three months ended  |                                                                                         |
| March 31, 2011                                                                                 |                                                                                         |
| Condensed Consolidated Statements of Cash Flows (unaudited) — Three months ended         |                                                                                         |
| March 31, 2011 and 2010                                                                        |                                                                                         |
|                                                                                           |                                                                                         |
| Summit Hotel OP, LP and Summit Hotel Properties, LLC                                           |                                                                                         |
| Condensed Consolidated Balance Sheets (unaudited) — March 31, 2011 and December 31, 2010 |                                                                                         |
| Condensed Consolidated Statements of Operations (unaudited) — Three months ended         |                                                                                         |
| March 31, 2011 and 2010                                                                        |                                                                                         |
| Condensed Consolidated Statements of Changes in Equity (unaudited) — Three months ended  |                                                                                         |
| March 31, 2011                                                                                 |                                                                                         |
| Condensed Consolidated Statements of Cash Flows (unaudited) — Three months ended         |                                                                                         |
| March 31, 2011 and 2010                                                                        |                                                                                         |
|                                                                                           |                                                                                         |
| Notes to Condensed Consolidated Financial Statements                                           |                                                                                         |
|                                                                                           |                                                                                         |   |   |   |   |
| Item 2.                                                                                        | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |   |   | 19     |   |
|                                                                                           |                                                                                         |   |   |   |   |
| Item 3.                                                                                        | Quantitative and Qualitative Disclosures about Market Risk.                                  |   |   | 37     |   |
|                                                                                           |                                                                                         |   |   |   |   |
| Item 4.                                                                                        | Controls and Procedures.                                                                     |   |   | 38     |   |
|                                                                                           |                                                                                         |   |   |   |   |
| PART II — OTHER INFORMATION                                                              |                                                                                         |
|                                                                                           |                                                                                         |   |   |   |   |
| Item 1.                                                                                        | Legal Proceedings.                                                                           |   |   | 40     |   |
|                                                                                           |                                                                                         |   |   |   |   |
| Item 1A.                                                                                       | Risk Factors.                                                                                |   |   | 40     |   |
|                                                                                           |                                                                                         |   |   |   |   |
| Item 2.                                                                                        | Unregistered Sales of Equity Securities and Use of Proceeds.                                 |   |   | 40     |   |
|                                                                                           |                                                                                         |   |   |   |   |
| Item 3.                                                                                        | Defaults Upon Senior Securities.                                                             |   |   | 41     |   |
|                                                                                           |                                                                                         |   |   |   |   |
| Item 4.                                                                                        | [Removed and Reserved.]                                                                      |   |   | 41     |   |
|                                                                                           |                                                                                         |   |   |   |   |
| Item 5.                                                                                        | Other Information.                                                                           |   |   | 41     |   |
|                                                                                           |                                                                                         |   |   |   |   |
| Item 6.                                                                                        | Exhibits.                                                                                    |   |   | 42     |   |

----

| Item 1. | Financial Statements. |
|---------|-----------------------|

|                                                                                                                                                                                                                         |   | Summit Hotel Properties, Inc. |        |   | Summit Hotel Properties, LLC (Predecessor) |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|-------------|--------|--------------------------------------------|--------|
|                                                                                                                                                                                                                         |   | 2011                          |        |   | 2010                                       |   |
| ASSETS                                                                                                                                                                                                                       |   |                          |        |   |                                       |   |
|                                                                                                                                                                                                                         |   |                          |        |   |                                       |   |
|   Cash and cash equivalents                                                                                                                                                                                        |   | $                             | 15,610,861  |   |                                       | $      | 7,977,418 |   |
|   Restricted cash                                                                                                                                                                                                  |   |                          | 649,694     |   |                                       |   | 1,933,268 |   |
|   Trade receivables                                                                                                                                                                                                |   |                          | 3,384,494   |   |                                       |   | 2,665,076 |   |
|   Receivable due from affiliate                                                                                                                                                                                    |   |                          | -           |   |                                       |   | 4,620,059 |   |
|   Prepaid expenses and other                                                                                                                                                                                       |   |                          | 1,744,567   |   |                                       |   | 1,738,645 |   |
|   Property and equipment, net                                                                                                                                                                                      |   |                          | 460,195,576 |   |                                       |   | 466,010,777 |   |
|   Deferred charges and other assets, net                                                                                                                                                                           |   |                          | 6,178,387   |   |                                       |   | 4,051,295 |   |
|   Other assets                                                                                                                                                                                                     |   |                          | 3,995,826   |   |                                       |   | 4,011,992 |   |
|           TOTAL ASSETS                                                                                                                                                     |   | $                             | 491,759,405 |   |                                       | $      | 493,008,530 |   |
|                                                                                                                                                                                                                         |   |                          |        |   |                                       |   |   |   |
|                                                                                                                                                                                                                         |   |                          |        |   |                                       |   |   |   |
| LIABILITIES AND EQUITY                                                                                                                                                                                                       |   |                          |        |   |                                       |   |   |   |
|                                                                                                                                                                                                                         |   |                          |        |   |                                       |   |   |   |
| LIABILITIES                                                                                                                                                                                                                  |   |                          |        |   |                                       |   |   |   |
|   Accounts payable                                                                                                                                                                                                 |   | $                             | 1,433,438   |   |                                       | $      | 864,560 |   |
|   Related party accounts payable                                                                                                                                                                                   |   |                          | -           |   |                                       |   | 771,066 |   |
|   Accrued expenses                                                                                                                                                                                                 |   |                          | 9,494,657   |   |                                       |   | 11,092,131 |   |
|   Mortgages and notes payable                                                                                                                                                                                      |   |                          | 195,714,446 |   |                                       |   | 420,437,207 |   |
|           TOTAL LIABILITIES                                                                                                                                                |   |                          | 206,642,541 |   |                                       |   | 433,164,964 |   |
|                                                                                                                                                                                                                         |   |                          |        |   |                                       |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                                                                                                |   |                          |        |   |                                       |   |   |   |
|                                                                                                                                                                                                                         |   |                          |        |   |                                       |   |   |   |
| EQUITY                                                                                                                                                                                                                       |   |                          |        |   |                                       |   |   |   |
|   Members' equity                                                                                                                                                                                                  |   |                          | -           |   |                                       |   | 61,468,029 |   |
|   Common stock, $.01 par value per share, 450,000,000 shares authorized,             27,278,000 shares issued and oustanding as of March 31, 2011 |   |                          | 272,780     |   |                                       |   | - |   |
|   Additional paid-in capital                                                                                                                                                                                       |   |                          | 241,104,130 |   |                                       |   | - |   |
|   Accumulated deficit and distributions                                                                                                                                                                            |   |                          | (1,178,308  | )      |                                       |   |   |   |
|   Total stockholders' equity                                                                                                                                                                                       |   |                          | 240,198,602 |   |                                       |   | 61,468,029 |   |
|   Noncontrolling interest                                                                                                                                                                                          |   |                          | 44,918,262  |   |                                       |   | (1,624,463 | ) |
|           TOTAL EQUITY                                                                                                                                                     |   |                          | 285,116,864 |   |                                       |   | 59,843,566 |   |
|                                                                                                                                                                                                                         |   |                          |        |   |                                       |   |   |   |
|           TOTAL LIABILITIES AND EQUITY                                                                                                                                     |   | $                             | 491,759,405 |   |                                       | $      | 493,008,530 |   |

----

|                                                                          |   | Summit Hotel Properties, Inc.  |       |   | Summit Hotel Properties, LLC (Predecessor) |   |
|-------------------------------------------------------------------------------|--------|--------------------------------|------------|--------|--------------------------------------------|--------|
|                                                                          |   | Period 2/14/11 through 3/31/11 |       |   | Period 1/1/11 through 2/13/11              |   |   | Three Months Ended 3/31/10 |   |
| REVENUES                                                                      |   |                           |       |   |                                       |   |   |   |   |
|   Room revenues                                                     |   | $                              | 18,446,850 |   |                                       | $      | 14,268,042 |   |   | $ | 30,679,846 |   |
|   Other hotel operations revenues                                   |   |                           | 362,299    |   |                                       |   | 330,251 |   |   |   | 682,874 |   |
| Total Revenue                                                                 |   |                           | 18,809,149 |   |                                       |   | 14,598,293 |   |   |   | 31,362,720 |   |
|                                                                          |   |                           |       |   |                                       |   |   |   |   |   |   |   |
| EXPENSES                                                                      |   |                           |       |   |                                       |   |   |   |   |   |   |   |
| Hotel operating expenses                                                      |   |                           |       |   |                                       |   |   |   |   |   |   |   |
|   Rooms                                                             |   |                           | 4,916,600  |   |                                       |   | 4,960,450 |   |   |   | 9,542,044 |   |
|   Other direct                                                      |   |                           | 2,121,207  |   |                                       |   | 2,657,760 |   |   |   | 4,128,345 |   |
|   Other indirect                                                    |   |                           | 4,934,528  |   |                                       |   | 4,686,274 |   |   |   | 8,436,331 |   |
|   Other                                                             |   |                           | 73,038     |   |                                       |   | 73,038 |   |   |   | 150,253 |   |
| Total hotel operaing expenses                                                 |   |                           | 12,045,373 |   |                                       |   | 12,377,522 |   |   |   | 22,256,973 |   |
|   Depreciation and amortization                                     |   |                           | 3,429,215  |   |                                       |   | 3,429,216 |   |   |   | 6,850,564 |   |
|   Corporate general and adminstrative:                              |   |                           |       |   |                                       |   |   |   |   |   |   |   |
|      Salaries and other compensation                 |   |                           | 367,018    |   |                                       |   | - |   |   |   | - |   |
|      Other                                           |   |                           | 775,352    |   |                                       |   | - |   |   |   | - |   |
|      Equity based compensation                       |   |                           | 126,828    |   |                                       |   | - |   |   |   | - |   |
|   Hotel property acquisition costs                                  |   |                           | -          |   |                                       |   | - |   |   |   | 65,692 |   |
| Total Expenses                                                                |   |                           | 16,743,786 |   |                                       |   | 15,806,738 |   |   |   | 29,173,229 |   |
|                                                                          |   |                           |       |   |                                       |   |   |   |   |   |   |   |
| INCOME (LOSS) FROM OPERATIONS                                                 |   |                           | 2,065,363  |   |                                       |   | (1,208,445 | ) |   |   | 2,189,491 |   |
|                                                                          |   |                           |       |   |                                       |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                                        |   |                           |       |   |                                       |   |   |   |   |   |   |   |
|   Interest income                                                   |   |                           | 3,947      |   |                                       |   | 7,139 |   |   |   | 12,085 |   |
|   Interest expense                                                  |   |                           | (3,511,129 | )      |                                       |   | (4,666,216 | ) |   |   | (5,567,197 | ) |
|   Gain (loss) on disposal of assets                                 |   |                           | -          |   |                                       |   | - |   |   |   | (37,451 | ) |
| Total Other Income (Expense)                                                  |   |                           | (3,507,182 | )      |                                       |   | (4,659,077 | ) |   |   | (5,592,563 | ) |
|                                                                          |   |                           |       |   |                                       |   |   |   |   |   |   |   |
| INCOME (LOSS) FROM CONTINUING OPERATIONS                                      |   |                           | (1,441,819 | )      |                                       |   | (5,867,522 | ) |   |   | (3,403,072 | ) |
|                                                                          |   |                           |       |   |                                       |   |   |   |   |   |   |   |
| INCOME TAX EXPENSE                                                            |   |                           | (172,302   | )      |                                       |   | (339,034 | ) |   |   | (152,483 | ) |
|                                                                          |   |                           |       |   |                                       |   |   |   |   |   |   |   |
| NET INCOME (LOSS)                                                             |   |                           | (1,614,121 | )      |                                       |   | (6,206,556 | ) |   |   | (3,555,555 | ) |
|                                                                          |   |                           |       |   |                                       |   |   |   |   |   |   |   |
|                                                                          |   |                           |       |   |                                       |   |   |   |   |   |   |   |
|  NET INCOME (LOSS) ALLOCATED TO   NONCONTROLLING INTEREST |   |                           | (435,813   | )      |                                       |   | - |   |   |   | - |   |
|                                                                          |   |                           |       |   |                                       |   |   |   |   |   |   |   |
| NET INCOME (LOSS) ALLOCATED TO COMMON   STOCKHOLDERS           |   | $                              | (1,178,308 | )      |                                       | $      | (6,206,556 | ) |   | $ | (3,555,555 | ) |
|                                                                          |   |                           |       |   |                                       |   |   |   |   |   |   |   |
|                                                                          |   |                           |       |   |                                       |   |   |   |   |   |   |   |
| Net income (loss) per share:                                                  |   |                           |       |   |                                       |   |   |   |   |   |   |   |
|   Basic and diluted                                                 |   | $                              | (0.04      | )      |                                       |   |   |   |   |   |   |   |
| Weighted-average common shares outstanding:                                   |   |                           |       |   |                                       |   |   |   |   |   |   |   |
|   Basic and diluted                                                 |   |                           | 27,278,000 |   |                                       |   |   |   |   |   |   |   |

----

|                                   |   |        |       |   |   |   |    |       |   |   |          |   |   | Total          |       |   |           |   |        |   |   |
|----------------------------------------|--------|-------------|------------|--------|--------|--------|---------|------------|--------|--------|---------------|--------|--------|----------------|------------|--------|----------------|--------|-------------|--------|--------|
|                                   |   | # of Shares |       |   |   |   |    | Additional |   |   | Accumulated   |   |   | Stockholders'/ |       |   |           |   |        |   |   |
|                                   |   | of Common   |       |   | Common |   |    | Paid-In    |   |   | Deficit and   |   |   | Members'       |       |   | Noncontrolling |   |        | Total  |   |
|                                   |   | Stock       |       |   | Stock  |   |    | Capital    |   |   | Distributions |   |   | Equity         |       |   | Interest       |   |        | Equity |   |
| Predecessor                            |   |        |       |   |   |   |    |       |   |   |          |   |   |           |       |   |           |   |        |   |   |
| BALANCES, JANUARY 1, 2011              |   |        | -          |   |   | $      | -       |       |   | $      | -             |   |   | $              | -          |   |           | $      | 61,468,029  |   |   | $ | (1,624,463 | ) |   | $ | 59,843,566 |   |
|                                   |   |        |       |   |   |   |    |       |   |   |          |   |   |           |       |   |           |   |        |   |   |   |   |   |   |   |   |   |
| Net income (loss)                      |   |        | -          |   |   |   | -       |       |   |   | -             |   |   |           | -          |   |           |   | (6,206,556  | )      |   |   | - |   |   |   | (6,206,556 | ) |
|                                   |   |        |       |   |   |   |    |       |   |   |          |   |   |           |       |   |           |   |        |   |   |   |   |   |   |   |   |   |
| Distributions to members               |   |        | -          |   |   |   | -       |       |   |   | -             |   |   |           | -          |   |           |   | (8,282,935  | )      |   |   | - |   |   |   | (8,282,935 | ) |
|                                   |   |        |       |   |   |   |    |       |   |   |          |   |   |           |       |   |           |   |        |   |   |   |   |   |   |   |   |   |
| BALANCES, FEBRUARY 13, 2011            |   |        | -          |   |   | $      | -       |       |   | $      | -             |   |   | $              | -          |   |           | $      | 46,978,538  |   |   | $ | (1,624,463 | ) |   | $ | 45,354,075 |   |
|                                   |   |        |       |   |   |   |    |       |   |   |          |   |   |           |       |   |           |   |        |   |   |   |   |   |   |   |   |   |
| Summit Hotel Properties, Inc.          |   |        |       |   |   |   |    |       |   |   |          |   |   |           |       |   |           |   |        |   |   |   |   |   |   |   |   |   |
| Equity from Predecessor                |   |        | -          |   |   | $      | -       |       |   | $      | -             |   |   | $              | -          |   |           | $      | -           |   |   | $ | 45,354,075 |   |   | $ | 45,354,075 |   |
| Net proceeds from sale of common stock |   |        | 27,278,000 |   |   |   | 272,780 |       |   |   | 240,977,302   |   |   |           | -          |   |           |   | 241,250,082 |   |   |   | - |   |   |   | 241,250,082 |   |
| Equity-based compensation              |   |        | -          |   |   |   | -       |       |   |   | 126,828       |   |   |           | -          |   |           |   | 126,828     |   |   |   | - |   |   |   | 126,828 |   |
| Net income (loss)                      |   |        | -          |   |   |   | -       |       |   |   | -             |   |   |           | (1,178,308 | )      |           |   | (1,178,308  | )      |   |   | (435,813 | ) |   |   | (1,614,121 | ) |
|                                   |   |        |       |   |   |   |    |       |   |   |          |   |   |           |       |   |           |   |        |   |   |   |   |   |   |   |   |   |
| BALANCES, MARCH 31, 2011               |   |        | 27,278,000 |   |   | $      | 272,780 |       |   | $      | 241,104,130   |   |   | $              | (1,178,308 | )      |           | $      | 240,198,602 |   |   | $ | 44,918,262 |   |   | $ | 285,116,864 |   |

----

|                                                                        |   | 2011   |         |   | 2010   |   |
|-----------------------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|
| OPERATING ACTIVITIES                                                        |   |   |         |   |   |   |
|   Net income (loss)                                               |   | $      | (7,820,677   | )      |   | $      | (3,555,555 | ) |
|   Adjustments to reconcile net income to                          |   |   |         |   |   |   |   |   |
|    net cash from operating activities:                       |   |   |         |   |   |   |   |   |
|     Depreciation and amortization                       |   |   | 6,858,431    |   |   |   | 6,850,564 |   |
|     Amortization of prepaid lease                       |   |   | 11,850       |   |   |   | 11,850 |   |
|     Equity-based compensation                           |   |   | 126,828      |   |   |   | - |   |
|     (Gain) loss on disposal of assets                   |   |   | -            |   |   |   | 37,451 |   |
|   Changes in operating assets and liabilities:                    |   |   |         |   |   |   |   |   |
|     Trade receivables                                   |   |   | (719,418     | )      |   |   | (1,121,170 | ) |
|     Prepaid expenses and other                          |   |   | 4,614,137    |   |   |   | 286,402 |   |
|     Accounts payable and related party accounts payable |   |   | (202,188     | )      |   |   | (639,313 | ) |
|     Accrued expenses                                    |   |   | (1,597,474   | )      |   |   | 1,095,179 |   |
|                                                                        |   |   |         |   |   |   |   |   |
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                    |   |   | 1,271,489    |   |   |   | 2,965,408 |   |
| INVESTING ACTIVITIES                                                        |   |   |         |   |   |   |   |   |
|   Land and hotel acquisitions and construction in progress        |   |   | -            |   |   |   | (204,556 | ) |
|   Purchases of other property and equipment                       |   |   | (3,087,798   | )      |   |   | (578,095 | ) |
|   Proceeds from asset dispositions, net of closing costs          |   |   | 4,316        |   |   |   | 3,588 |   |
|   Restricted cash released (funded)                               |   |   | 1,283,574    |   |   |   | 484,306 |   |
|                                                                        |   |   |         |   |   |   |   |   |
| NET CASH PROVIDED BY (USED IN)                                              |   |   | (1,799,908   | )      |   |   | (294,757 | ) |
|   INVESTING ACTIVITIES                                            |   |   |         |   |   |   |   |   |
| FINANCING ACTIVITIES                                                        |   |   |         |   |   |   |   |   |
|   Proceeds from issuance of debt                                  |   |   | 456,059      |   |   |   | 2,426,869 |   |
|   Principal payments on debt                                      |   |   | (225,178,820 | )      |   |   | (3,093,656 | ) |
|   Financing fees on debt                                          |   |   | (82,524      | )      |   |   | (50,000 | ) |
|   Proceeds from sale of common stock, net of offering costs       |   |   | 241,250,082  |   |   |   | - |   |
|   Distributions to members                                        |   |   | (8,282,935   | )      |   |   | (535,261 | ) |
|                                                                        |   |   |         |   |   |   |   |   |
| NET CASH PROVIDED BY (USED IN)                                              |   |   | 8,161,862    |   |   |   | (1,252,048 | ) |
|   FINANCING ACTIVITIES                                            |   |   |         |   |   |   |   |   |
|                                                                        |   |   |         |   |   |   |   |   |
| NET CHANGE IN CASH AND CASH EQUIVALENTS                                     |   |   | 7,633,443    |   |   |   | 1,418,603 |   |
|                                                                        |   |   |         |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS   BEGINNING OF PERIOD              |   |   | 7,977,418    |   |   |   | 8,239,225 |   |
|                                                                        |   |   |         |   |   |   |   |   |
|   END OF PERIOD                                                   |   | $      | 15,610,861   |   |   | $      | 9,657,828 |   |
|                                                                        |   |   |         |   |   |   |   |   |

----

|                                                         |   | 2011   |      |   | 2010   |   |
|--------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| SUPPLEMENTAL DISCLOSURE OF  CASH FLOW INFORMATION: |   |   |      |   |   |   |
|     Cash payments for interest           |   | $      | 9,121,513 |   |   | $      | 5,451,651 |   |
|                                                         |   |   |      |   |   |   |   |   |
|     Cash payments for state income taxes |   | $      | 19,302    |   |   | $      | 12,328 |   |

----

|                                                                                     |   | Summit Hotel Properties OP, LP |        |   | Summit Hotel Properties, LLC (Predecessor) |   |
|------------------------------------------------------------------------------------------|--------|--------------------------------|-------------|--------|--------------------------------------------|--------|
|                                                                                     |   | 2011                           |        |   | 2010                                       |   |
| ASSETS                                                                                   |   |                           |        |   |                                       |   |
|                                                                                     |   |                           |        |   |                                       |   |
|   Cash and cash equivalents                                                    |   | $                              | 15,610,861  |   |                                       | $      | 7,977,418 |   |
|   Restricted cash                                                              |   |                           | 649,694     |   |                                       |   | 1,933,268 |   |
|   Trade receivables                                                            |   |                           | 3,384,494   |   |                                       |   | 2,665,076 |   |
|   Receivable due from affiliate                                                |   |                           | -           |   |                                       |   | 4,620,059 |   |
|   Prepaid expenses and other                                                   |   |                           | 1,744,567   |   |                                       |   | 1,738,645 |   |
|   Property and equipment, net                                                  |   |                           | 460,195,576 |   |                                       |   | 466,010,777 |   |
|   Deferred charges and other assets, net                                       |   |                           | 6,178,387   |   |                                       |   | 4,051,295 |   |
|   Other assets                                                                 |   |                           | 3,995,826   |   |                                       |   | 4,011,992 |   |
|           TOTAL ASSETS                 |   | $                              | 491,759,405 |   |                                       | $      | 493,008,530 |   |
|                                                                                     |   |                           |        |   |                                       |   |   |   |
|                                                                                     |   |                           |        |   |                                       |   |   |   |
| LIABILITIES AND EQUITY                                                                   |   |                           |        |   |                                       |   |   |   |
|                                                                                     |   |                           |        |   |                                       |   |   |   |
| LIABILITIES                                                                              |   |                           |        |   |                                       |   |   |   |
|   Accounts payable                                                             |   | $                              | 1,433,438   |   |                                       | $      | 864,560 |   |
|   Related party accounts payable                                               |   |                           | -           |   |                                       |   | 771,066 |   |
|   Accrued expenses                                                             |   |                           | 9,494,657   |   |                                       |   | 11,092,131 |   |
|   Mortgages and notes payable                                                  |   |                           | 195,714,446 |   |                                       |   | 420,437,207 |   |
|           TOTAL LIABILITIES            |   |                           | 206,642,541 |   |                                       |   | 433,164,964 |   |
|                                                                                     |   |                           |        |   |                                       |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                            |   |                           |        |   |                                       |   |   |   |
|                                                                                     |   |                           |        |   |                                       |   |   |   |
| EQUITY                                                                                   |   |                           |        |   |                                       |   |   |   |
|   Members' equity                                                              |   |                           | -           |   |                                       |   | 61,468,029 |   |
|   Partners' equity:                                                            |   |                           |        |   |                                       |   |   |   |
|      General partner, 27,278,000 units outstanding              |   |                           | 240,198,602 |   |                                       |   | - |   |
|      Limited partners, 10,100,000 units outstanding             |   |                           | 44,918,262  |   |                                       |   | - |   |
|   Total members'/partners' equity                                              |   |                           | 285,116,864 |   |                                       |   | 61,468,029 |   |
|   Noncontrolling interest                                                      |   |                           | -           |   |                                       |   | (1,624,463 | ) |
|           TOTAL EQUITY                 |   |                           | 285,116,864 |   |                                       |   | 59,843,566 |   |
|                                                                                     |   |                           |        |   |                                       |   |   |   |
|           TOTAL LIABILITIES AND EQUITY |   | $                              | 491,759,405 |   |                                       | $      | 493,008,530 |   |
|                                                                                     |   |                           |        |   |                                       |   |   |   |

----

|                                                          |   | Summit Hotel Properties OP, LP |       |   | Summit Hotel Properties, LLC (Predecessor) |   |
|---------------------------------------------------------------|--------|--------------------------------|------------|--------|--------------------------------------------|--------|
|                                                          |   | Period 2/14/11 through 3/31/11 |       |   | Period 1/1/11 through 2/13/11              |   |   | Three Months Ended 3/31/10 |   |
| REVENUES                                                      |   |                           |       |   |                                       |   |   |   |   |
|   Room revenues                                     |   | $                              | 18,446,850 |   |                                       | $      | 14,268,042 |   |   | $ | 30,679,846 |   |
|   Other hotel operations revenues                   |   |                           | 362,299    |   |                                       |   | 330,251 |   |   |   | 682,874 |   |
| Total Revenue                                                 |   |                           | 18,809,149 |   |                                       |   | 14,598,293 |   |   |   | 31,362,720 |   |
|                                                          |   |                           |       |   |                                       |   |   |   |   |   |   |   |
| EXPENSES                                                      |   |                           |       |   |                                       |   |   |   |   |   |   |   |
| Hotel operating expenses                                      |   |                           |       |   |                                       |   |   |   |   |   |   |   |
|   Rooms                                             |   |                           | 4,916,600  |   |                                       |   | 4,960,450 |   |   |   | 9,542,044 |   |
|   Other direct                                      |   |                           | 2,121,207  |   |                                       |   | 2,657,760 |   |   |   | 4,128,345 |   |
|   Other indirect                                    |   |                           | 4,934,528  |   |                                       |   | 4,686,274 |   |   |   | 8,436,331 |   |
|   Other                                             |   |                           | 73,038     |   |                                       |   | 73,038 |   |   |   | 150,253 |   |
| Total hotel operaing expenses                                 |   |                           | 12,045,373 |   |                                       |   | 12,377,522 |   |   |   | 22,256,973 |   |
|   Depreciation and amortization                     |   |                           | 3,429,215  |   |                                       |   | 3,429,216 |   |   |   | 6,850,564 |   |
|   Corporate general and adminstrative:              |   |                           |       |   |                                       |   |   |   |   |   |   |   |
|      Salaries and other compensation |   |                           | 367,018    |   |                                       |   | - |   |   |   | - |   |
|      Other                           |   |                           | 775,352    |   |                                       |   | - |   |   |   | - |   |
|      Equity based compensation       |   |                           | 126,828    |   |                                       |   | - |   |   |   | - |   |
|   Hotel property acquisition costs                  |   |                           | -          |   |                                       |   | - |   |   |   | 65,692 |   |
| Total Expenses                                                |   |                           | 16,743,786 |   |                                       |   | 15,806,738 |   |   |   | 29,173,229 |   |
|                                                          |   |                           |       |   |                                       |   |   |   |   |   |   |   |
| INCOME (LOSS) FROM OPERATIONS                                 |   |                           | 2,065,363  |   |                                       |   | (1,208,445 | ) |   |   | 2,189,491 |   |
|                                                          |   |                           |       |   |                                       |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                        |   |                           |       |   |                                       |   |   |   |   |   |   |   |
|   Interest income                                   |   |                           | 3,947      |   |                                       |   | 7,139 |   |   |   | 12,085 |   |
|   Interest expense                                  |   |                           | (3,511,129 | )      |                                       |   | (4,666,216 | ) |   |   | (5,567,197 | ) |
|   Gain (loss) on disposal of assets                 |   |                           | -          |   |                                       |   | - |   |   |   | (37,451 | ) |
| Total Other Income (Expense)                                  |   |                           | (3,507,182 | )      |                                       |   | (4,659,077 | ) |   |   | (5,592,563 | ) |
|                                                          |   |                           |       |   |                                       |   |   |   |   |   |   |   |
| INCOME (LOSS) FROM CONTINUING OPERATIONS                      |   |                           | (1,441,819 | )      |                                       |   | (5,867,522 | ) |   |   | (3,403,072 | ) |
|                                                          |   |                           |       |   |                                       |   |   |   |   |   |   |   |
| INCOME TAX EXPENSE                                            |   |                           | (172,302   | )      |                                       |   | (339,034 | ) |   |   | (152,483 | ) |
|                                                          |   |                           |       |   |                                       |   |   |   |   |   |   |   |
| NET INCOME (LOSS)                                             |   |                           | (1,614,121 | )      |                                       |   | (6,206,556 | ) |   |   | (3,555,555 | ) |
|                                                          |   |                           |       |   |                                       |   |   |   |   |   |   |   |
|                                                          |   |                           |       |   |                                       |   |   |   |   |   |   |   |
| Net income (loss) per unit:                                   |   |                           |       |   |                                       |   |   |   |   |   |   |   |
|   Basic and diluted                                 |   | $                              | (0.04      | )      |                                       |   |   |   |   |   |   |   |
| Weighted-average units outstanding:                           |   |                           |       |   |                                       |   |   |   |   |   |   |   |
|   Basic and diluted                                 |   |                           | 37,378,000 |   |                                       |   |   |   |   |   |   |   |

----

|                                     |   |    |        |   | Total            |   |       |           |   |   |       |   |
|------------------------------------------|--------|---------|-------------|--------|------------------|--------|------------|----------------|--------|--------|------------|--------|
|                                     |   | General |        |   | Members'/Limited |   |       | Noncontrolling |   |   | Total      |   |
|                                     |   | Partner |        |   | Partners' Equity |   |       | Interest       |   |   | Equity     |   |
| Predecessor                              |   |    |        |   |             |   |       |           |   |   |       |   |
| BALANCES, JANUARY 1, 2011                |   | $       | -           |   |             | $      | 61,468,029 |           |   | $      | (1,624,463 | )      |   | $ | 59,843,566 |   |
|                                     |   |    |        |   |             |   |       |           |   |   |       |   |   |   |   |   |
| Net income (loss)                        |   |    | -           |   |             |   | (6,206,556 | )              |   |   | -          |   |   |   | (6,206,556 | ) |
|                                     |   |    |        |   |             |   |       |           |   |   |       |   |   |   |   |   |
| Distributions to members                 |   |    | -           |   |             |   | (8,282,935 | )              |   |   | -          |   |   |   | (8,282,935 | ) |
|                                     |   |    |        |   |             |   |       |           |   |   |       |   |   |   |   |   |
| BALANCES, FEBRUARY 13, 2011              |   | $       | -           |   |             | $      | 46,978,538 |           |   | $      | (1,624,463 | )      |   | $ | 45,354,075 |   |
|                                     |   |    |        |   |             |   |       |           |   |   |       |   |   |   |   |   |
| Summit Hotel OP, LP                      |   |    |        |   |             |   |       |           |   |   |       |   |   |   |   |   |
| Equity from predecessor/limited partners |   | $       | -           |   |             | $      | 45,354,075 |           |   | $      | -          |   |   | $ | 45,354,075 |   |
| Contributions                            |   |    | 241,250,082 |   |             |   | -          |           |   |   | -          |   |   |   | 241,250,082 |   |
| Equity-based compensation                |   |    | 126,828     |   |             |   | -          |           |   |   | -          |   |   |   | 126,828 |   |
| Net income (loss)                        |   |    | (1,178,308  | )      |             |   | (435,813   | )              |   |   | -          |   |   |   | (1,614,121 | ) |
|                                     |   |    |        |   |             |   |       |           |   |   |       |   |   |   |   |   |
| BALANCES, MARCH 31, 2011                 |   | $       | 240,198,602 |   |             | $      | 44,918,262 |           |   | $      | -          |   |   | $ | 285,116,864 |   |

----

|                                                                        |   | 2011   |         |   | 2010   |   |
|-----------------------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|
| OPERATING ACTIVITIES                                                        |   |   |         |   |   |   |
|   Net income (loss)                                               |   | $      | (7,820,677   | )      |   | $      | (3,555,555 | ) |
|   Adjustments to reconcile net income to                          |   |   |         |   |   |   |   |   |
|    net cash from operating activities:                       |   |   |         |   |   |   |   |   |
|     Depreciation and amortization                       |   |   | 6,858,431    |   |   |   | 6,850,564 |   |
|     Amortization of prepaid lease                       |   |   | 11,850       |   |   |   | 11,850 |   |
|     Equity-based compensation                           |   |   | 126,828      |   |   |   | - |   |
|     (Gain) loss on disposal of assets                   |   |   | -            |   |   |   | 37,451 |   |
|   Changes in operating assets and liabilities:                    |   |   |         |   |   |   |   |   |
|     Trade receivables                                   |   |   | (719,418     | )      |   |   | (1,121,170 | ) |
|     Prepaid expenses and other                          |   |   | 4,614,137    |   |   |   | 286,402 |   |
|     Accounts payable and related party accounts payable |   |   | (202,188     | )      |   |   | (639,313 | ) |
|     Accrued expenses                                    |   |   | (1,597,474   | )      |   |   | 1,095,179 |   |
|                                                                        |   |   |         |   |   |   |   |   |
| NET CASH PROVIDED BY (USED IN)                                              |   |   | 1,271,489    |   |   |   | 2,965,408 |   |
|   OPERATING ACTIVITIES                                            |   |   |         |   |   |   |   |   |
| INVESTING ACTIVITIES                                                        |   |   |         |   |   |   |   |   |
|   Land and hotel acquisitions and construction in progress        |   |   | -            |   |   |   | (204,556 | ) |
|   Purchases of other property and equipment                       |   |   | (3,087,798   | )      |   |   | (578,095 | ) |
|   Proceeds from asset dispositions, net of closing costs          |   |   | 4,316        |   |   |   | 3,588 |   |
|   Restricted cash released (funded)                               |   |   | 1,283,574    |   |   |   | 484,306 |   |
|                                                                        |   |   |         |   |   |   |   |   |
| NET CASH PROVIDED BY (USED IN)                                              |   |   | (1,799,908   | )      |   |   | (294,757 | ) |
|   INVESTING ACTIVITIES                                            |   |   |         |   |   |   |   |   |
| FINANCING ACTIVITIES                                                        |   |   |         |   |   |   |   |   |
|   Proceeds from issuance of debt                                  |   |   | 456,059      |   |   |   | 2,426,869 |   |
|   Principal payments on debt                                      |   |   | (225,178,820 | )      |   |   | (3,093,656 | ) |
|   Financing fees on debt                                          |   |   | (82,524      | )      |   |   | (50,000 | ) |
|   Contributions                                                   |   |   | 241,250,082  |   |   |   | - |   |
|   Distributions to members                                        |   |   | (8,282,935   | )      |   |   | (535,261 | ) |
|                                                                        |   |   |         |   |   |   |   |   |
| NET CASH PROVIDED BY (USED IN)                                              |   |   | 8,161,862    |   |   |   | (1,252,048 | ) |
|   FINANCING ACTIVITIES                                            |   |   |         |   |   |   |   |   |
|                                                                        |   |   |         |   |   |   |   |   |
| NET CHANGE IN CASH AND CASH EQUIVALENTS                                     |   |   | 7,633,443    |   |   |   | 1,418,603 |   |
|                                                                        |   |   |         |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS                                                   |   |   |         |   |   |   |   |   |
|   BEGINNING OF PERIOD                                             |   |   | 7,977,418    |   |   |   | 8,239,225 |   |
|                                                                        |   |   |         |   |   |   |   |   |
|   END OF PERIOD                                                   |   | $      | 15,610,861   |   |   | $      | 9,657,828 |   |
|                                                                        |   |   |         |   |   |   |   |   |

----

|                                                               |   | 2011   |      |   | 2010   |   |
|--------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| SUPPLEMENTAL DISCLOSURE OF   CASH FLOW INFORMATION: |   |   |      |   |   |   |
|     Cash payments for interest                 |   | $      | 9,121,513 |   |   | $      | 5,451,651 |   |
|                                                               |   |   |      |   |   |   |   |   |
|     Cash payments for state income taxes       |   | $      | 19,302    |   |   | $      | 12,328 |   |

----

----

|   | ● | to reclassify (a) $9.5 million of direct hotel operations expense (wages, payroll taxes and benefits, linens, cleaning and guestroom supplies and complimentary breakfast) as rooms expense; and (b) $1.4 million of direct hotel operations expense (franchise royalties) as other indirect expense; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | to reclassify (a) $2.1 million of other hotel operating expense (utilities and telephone) as other direct expense; and (b) $2.5 million of other hotel operating expense (property taxes, insurance and cable) as other indirect expense; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | to reclassify (a) $1.1 million of general, selling and administrative expense (office supplies, advertising, miscellaneous operating expenses and bad debt expense) as other direct expenses; (b) $4.6 million of general, selling and administrative expense (credit card/travel agent commissions, management company expense, management company legal and accounting fees and franchise fees) as other indirect expenses; and (c) $150,000 of general, selling and administrative expense (ground rent and other expense) as other expense; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | to reclassify $934,000 of repairs and maintenance expense as other direct expenses; and |
|--------|---------|-----------------------------------------------------------------------------------------|

|   | ● | to reclassify $66,000 of other indirect expense (hotel startup costs) as hotel property acquisition costs. |
|--------|---------|------------------------------------------------------------------------------------------------------------|

----

----

----

|                         |   | 2011   |   |   | 2010   |   |
|------------------------------|--------|--------|--------|--------|--------|--------|
| Fixed-rate mortgage loans    |   | $      | 92.4   |   |   | $      | 170.1 |   |
| Variable-rate mortgage loans |   |   | 103.3  |   |   |   | 250.3 |   |
|                         |   | $      | 195.7  |   |   | $      | 420.4 |   |

| ―  | approximately $89.3 million to repay in full a loan from Fortress Credit Corp., including approximately $2.1 million of exit fees, interest and legal fees; |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ― | approximately $78.2 million to repay in full a loan originally made by Lehman Brothers Bank, including approximately $1.4 million to pay an extinguishment premium and other transaction costs; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ―  | approximately $21.4 million to repay in full two loans with Marshall & Isley Bank; and |
|---------------|------------------------------------------------------------------------------------------------------|

| ―  | approximately $38.3 million to repay in full two loans with First National Bank of Omaha. |
|---------------|------------------------------------------------------------------------------------------------|

----

|                                     |   | As of February 14, 2011 |   |
|------------------------------------------|--------|-------------------------|--------|
|                                     |   |                    |   |
| Expected dividend yield at date of grant |   |                    | 5.09   | % |
| Expected stock price volatility          |   |                    | 56.6   | % |
| Risk-free interest rate                  |   |                    | 2.57   | % |
| Expected life of options (in years)      |   |                    | 6.5    |   |

----

|                             |   | Number of Options |    |   | Weighted-Average Exercise Price |   |   | Weighted-Average Remaining Contractual Terms (years) |   |   | Aggregate Intrinsic Value (in thousands) |   |
|----------------------------------|--------|-------------------|---------|--------|---------------------------------|--------|--------|------------------------------------------------------|--------|--------|------------------------------------------|--------|
| Outstanding at December 31, 2010 |   |              | -       |   |                            | $      | -      |                                                 |   |   | -                                        |   |   | $ | - |   |
| Granted                          |   |              | 940,000 |   |                            | $      | 9.75   |                                                 |   |   | -                                        |   |   | $ | - |   |
| Exercised                        |   |              | -       |   |                            | $      | -      |                                                 |   |   | -                                        |   |   | $ | - |   |
| Cancelled                        |   |              | -       |   |                            | $      | -      |                                                 |   |   | -                                        |   |   | $ | - |   |
| Outstanding at March 31, 2011    |   |              | 940,000 |   |                            | $      | 9.75   |                                                 |   |   | 9.9                                      |   |   | $ | 131 |   |
| Exercisable at March 31, 2011    |   |              | -       |   |                            | $      | -      |                                                 |   |   | -                                        |   |   | $ | - |   |

|   | ● | our 127-room hotel in Baton Rouge, Louisiana; |
|--------|---------|-----------------------------------------------|

|   | ● | our 126-room hotel in San Antonio, Texas; |
|--------|---------|-------------------------------------------|

|   | ● | our 119-room hotel in Boise, Idaho; |
|--------|---------|-------------------------------------|

|   | ● | our 89-room hotel in Ft. Smith, Arkansas; |
|--------|---------|-------------------------------------------|

|   | ● | our 60-room hotel in Salina, Kansas; |
|--------|---------|--------------------------------------|

|   | ● | our 52-room hotel in Missoula, Montana; |
|--------|---------|-----------------------------------------|

|   | ● | our 62-room hotel in Golden, Colorado; |
|--------|---------|----------------------------------------|

|   | ● | our 111-room hotel in Twin Falls, Idaho; |
|--------|---------|------------------------------------------|

|   | ● | our 67-room hotel in Charleston, West Virginia; and |
|--------|---------|-----------------------------------------------------|

|   | ● | our 70-room hotel in Ft. Worth, Texas. |
|--------|---------|----------------------------------------|

----

----

| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
|---------|----------------------------------------------------------------------------------------------|

|   | ● | the timing and availability of potential hotel acquisitions and our ability to identify and complete hotel acquisitions in accordance with our business strategy; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | risks associated with the hotel industry, including competition, increases in employment costs, energy costs and other operating costs, or decreases in demand caused by actual or threatened terrorist attacks, any type of flu or disease-related pandemic, or downturns in general and local economic conditions; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | the availability and terms of financing and capital and the general volatility of securities markets; |
|--------|---------|-------------------------------------------------------------------------------------------------------|

|   | ● | our dependence on third-party managers of our hotels, including our inability to implement strategic business decisions directly; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | ● | risks associated with the real estate industry, including environmental contamination and costs of complying with the Americans with Disabilities Act and similar laws; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | interest rate increases; |
|--------|---------|--------------------------|

|   | ● | our possible failure to qualify as a REIT and the risk of changes in laws affecting REITs; |
|--------|---------|--------------------------------------------------------------------------------------------|

|   | ● | the possibility of uninsured losses; |
|--------|---------|--------------------------------------|

|   | ● | risks associated with redevelopment and repositioning projects, including delays and cost overruns; and |
|--------|---------|---------------------------------------------------------------------------------------------------------|

|   | ● | the other factors discussed under the heading “Risk Factors” in our combined Annual Report on Form 10-K for the year ended December 31, 2010, as updated elsewhere in this report. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|   | ● | to reclassify (a) $9.5 million of direct hotel operations expense (wages, payroll taxes and benefits, linens, cleaning and guestroom supplies and complimentary breakfast) as rooms expense; and (b) $1.4 million of direct hotel operations expense (franchise royalties) as other indirect expense. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | to reclassify (a) $2.1 million of other hotel operating expense (utilities and telephone) as other direct expense; and (b) $2.5 million of other hotel operating expense (property taxes, insurance and cable) as other indirect expense. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | to reclassify (a) $1.1 million of general, selling and administrative expense (office supplies, advertising, miscellaneous operating expenses and bad debt expense) as other direct expenses; (b) $4.6 million of general, selling and administrative expense (credit card/travel agent commissions, management company expense, management company legal and accounting fees and franchise fees) as other indirect expenses; and (c) $150,000 of general, selling and administrative expense (ground rent and other expense) as other expense. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | to reclassify $934,000 of repairs and maintenance expense as other direct expenses. |
|--------|---------|-------------------------------------------------------------------------------------|

|   | ● | to reclassify $66,000 of other indirect expense (hotel startup costs) as hotel property acquisition costs. |
|--------|---------|------------------------------------------------------------------------------------------------------------|

|   | ● | Occupancy rates (“occupancy”); |
|--------|---------|--------------------------------------------|

|   | ● | Average daily rates (“ADR”); and |
|--------|---------|----------------------------------------------|

|   | ● | Revenue per available room (“RevPAR”). |
|--------|---------|----------------------------------------------------|

----

----

| Franchisor/Brand                       |   | No. of Hotels |   | No. of Rooms |
|----------------------------------------|--------|---------------|--------|--------------|
|                                   |   |          |   |         |   |   |
| Marriott                               |   |          |   |         |   |   |
| Courtyard by Marriott                  |   |          | 6      |         |   |   | 715 |   |
| Residence Inn by Marriott              |   |          | 4      |         |   |   | 411 |   |
| Fairfield Inn by Marriott              |   |          | 9      |         |   |   | 787 |   |
| Fairfield Inn & Suites by Marriott |   |          | 1      |         |   |   | 80 |   |
| SpringHill Suites by Marriott          |   |          | 7      |         |   |   | 671 |   |
| TownePlace Suites by Marriott          |   |          | 1      |         |   |   | 90 |   |
|                                   |   |          | 28     |         |   |   | 2,754 |   |
| Hilton                                 |   |          |   |         |   |   |   |   |
| Hampton Inn                            |   |          | 8      |         |   |   | 821 |   |
| Hampton Inn & Suites               |   |          | 3      |         |   |   | 390 |   |
| Hilton Garden Inn                      |   |          | 1      |         |   |   | 120 |   |
|                                   |   |          | 12     |         |   |   | 1,331 |   |
| IHG                                    |   |          |   |         |   |   |   |   |
| Holiday Inn Express                    |   |          | 2      |         |   |   | 182 |   |
| Holiday Inn Express & Suites       |   |          | 4      |         |   |   | 365 |   |
| Holiday Inn(1) (2)                     |   |          | 1      |         |   |   | 119 |   |
| Staybridge Suites                      |   |          | 1      |         |   |   | 92 |   |
|                                   |   |          | 8      |         |   |   | 758 |   |
| Hyatt                                  |   |          |   |         |   |   |   |   |
| Hyatt Place                            |   |          | 4      |         |   |   | 556 |   |
|                                   |   |          |   |         |   |   |   |   |
| Choice(2) (3)                          |   |          |   |         |   |   |   |   |
| Cambria Suites                         |   |          | 1      |         |   |   | 113 |   |
|                                   |   |          |   |         |   |   |   |   |
| AmericInn International                |   |          |   |         |   |   |   |   |
| AmericInn Hotel & Suites(2) (4)    |   |          | 4      |         |   |   | 285 |   |
| AmericInn(2) (5)                       |   |          | 1      |         |   |   | 89 |   |
|                                   |   |          | 5      |         |   |   | 374 |   |
| Starwood                               |   |          |   |         |   |   |   |   |
| Aloft                                  |   |          | 1      |         |   |   | 136 |   |
|                                   |   |          |   |         |   |   |   |   |
| Carlson                                |   |          |   |         |   |   |   |   |
| Country Inn & Suites By Carlson    |   |          | 1      |         |   |   | 64 |   |
|                                   |   |          |   |         |   |   |   |   |
| Independent                            |   |          |   |         |   |   |   |   |
| Aspen Hotel & Suites               |   |          | 1      |         |   |   | 57 |   |
| Aspen Suites(2) (6)                    |   |          | 4      |         |   |   | 390 |   |
|                                   |   |          | 5      |         |   |   | 447 |   |
|                                   |   |          |   |         |   |   |   |   |
| Total                                  |   |          | 65     |         |   |   | 6,533 |   |

----

| (1)  | Formerly Cambria Suites, Boise, ID. |
|-----------|-------------------------------------|

| (2)  | As of March 30, 2011, these hotels were independent hotels, not operating under a nationally recognized brand. |
|-----------|----------------------------------------------------------------------------------------------------------------|

| (3)  | Hotel expected to be converted to a SpringHill Suites by Marriott effective June 24, 2011. |
|-----------|--------------------------------------------------------------------------------------------|

| (4) | Formerly Comfort Inn, Salina, KS; Comfort Inn, Missoula, MT; Comfort Suites, Golden, CO; Comfort Inn & Suites, Twin Falls, ID. |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Formerly Comfort Inn, Ft. Smith, AR. |
|-----|--------------------------------------|

| (6) | Formerly Cambria Suites, Baton Rouge, LA; Cambria Suites, San Antonio, TX; Comfort Suites, Charleston, WV; Comfort Suites, Ft. Worth, TX. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

----

|                              |   | Three Months Ended March 31, |   |   | Percentage |   |
|-----------------------------------|--------|------------------------------|--------|--------|------------|--------|
|                              |   | 2011                         |   |   | 2010       |   |   | Change |   |
| Number of hotels at end of period |   |                         | 46     |   |       |   | 46 |   |   |   | — |   |
| Average number of rooms           |   |                         | 4,173  |   |       |   | 4,173 |   |   |   | — |   |
| Revenue                           |   | $                            | 21,049 |   |       | $      | 20,473 |   |   |   | 2.8 | % |
| Occupancy                         |   |                         | 59.2   | %      |       |   | 60.8 | % |   |   | (2.6 | )% |
| ADR                               |   | $                            | 93.31  |   |       | $      | 88.22 |   |   |   | 5.8 | % |
| RevPAR                            |   | $                            | 55.20  |   |       | $      | 53.65 |   |   |   | 2.9 | % |

|                              |   | Three Months Ended March 31, |   |   | Percentage |   |
|-----------------------------------|--------|------------------------------|--------|--------|------------|--------|
|                              |   | 2011                         |   |   | 2010       |   |   | Change |   |
| Number of hotels at end of period |   |                         | 19     |   |       |   | 19 |   |   |   | — |   |
| Average number of rooms           |   |                         | 2,360  |   |       |   | 2,360 |   |   |   | — |   |
| Revenue                           |   | $                            | 12,358 |   |       | $      | 10,890 |   |   |   | 13.5 | % |
| Occupancy                         |   |                         | 62.8   | %      |       |   | 57.6 | % |   |   | 9.0 | % |
| ADR                               |   | $                            | 89.77  |   |       | $      | 86.12 |   |   |   | 4.2 | % |
| RevPAR                            |   | $                            | 56.41  |   |       | $      | 49.58 |   |   |   | 13.8 | % |

----

|                          |   | Company                                         |   |   | Our Predecessor                                  |   |   | Combined                         |   |   | Our Predecessor                 |   | Quarter-over-Quarter |   |
|-------------------------------|--------|-------------------------------------------------|--------|--------|--------------------------------------------------|--------|--------|----------------------------------|--------|--------|---------------------------------|--------|----------------------|--------|
|                          |   | Period February 14, 2011 through March 31, 2011 |   |   | Period January 1, 2011 through February 13, 2011 |   |   | Three Months EndedMarch 31, 2011 |   |   | Three MonthsEndedMarch 31, 2010 |   | Change               |   |
| $                             |   | %                                               |   |
| Revenues:                     |   | $                                               | 18,809 |   |                                             | $      | 14,598 |                             |   | $      | 33,407                          |   |                 | $      | 31,363 |   | $ | 2,044 |   | 6.5 | % |
| Hotel operating expenses:     |   | $                                               | 12,045 |   |                                             | $      | 12,378 |                             |   | $      | 24,423                          |   |                 | $      | 22,257 |   | $ | 2,166 |   | 9.7 | % |
| Total expenses:               |   | $                                               | 16,744 |   |                                             | $      | 15,807 |                             |   | $      | 32,551                          |   |                 | $      | 29,173 |   | $ | 3,378 |   | 11.6 | % |
| Income from operations:       |   | $                                               | 2,065  |   |                                             | $      | (1,208 | )                                |   | $      | 857                             |   |                 | $      | 2,189 |   | $ | (1,332 | ) | (60.8 | )% |
| Total other income (expense): |   | $                                               | (3,507 | )      |                                             | $      | (4,659 | )                                |   | $      | (8,166                          | )      |                 | $      | (5,593 | ) | $ | (2,573 | ) | (46.0 | )% |
| Net income (loss):            |   | $                                               | (1,614 | )      |                                             | $      | (6,207 | )                                |   | $      | (7,821                          | )      |                 | $      | (3,556 | ) | $ | (4,265 | ) | (119.9 | )% |

|                                                                                                                                                                                                                                                                                                 |   | Three Months Ended March 31, 2011 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                 |   | Total Revenue                          |   |   | Occupancy |   |   | ADR |   |   | RevPAR |   |
| Total/Same-store (65 hotels)                                                                                                                                                                                                                                                                         |   | $                                      | 33,407 |   |   |   | 60.5 | % |   | $ | 91.98 |   |   | $ | 55.64 |   |
| Seasoned (46 hotels)                                                |   | $                                      | 21,049 |   |   |   | 59.2 | % |   | $ | 93.31 |   |   | $ | 55.20 |   |
| Unseasoned (19 hotels)                                              |   | $                                      | 12,358 |   |   |   | 62.8 | % |   | $ | 89.77 |   |   | $ | 56.41 |   |

|                                                                                                                                                                                                                                                                                                 |   | Three Months Ended March 31, 2010 |          |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------------|--------|
|                                                                                                                                                                                                                                                                                                 |   |                              | Total Revenue |   |   |   | Occupancy |   |   |   | ADR |   |   |   | RevPAR |   |
| Total/Same-store (65 hotels)                                                                                                                                                                                                                                                                         |   | $                                 | 31,363        |   |   |   | 59.6 | % |   | $ | 87.49 |   |   | $ | 52.18 |   |
| Seasoned (46 hotels)                                                |   | $                                 | 20,473        |   |   |   | 60.8 | % |   | $ | 88.22 |   |   | $ | 53.65 |   |
| Unseasoned (19 hotels)                                              |   | $                                 | 10,890        |   |   |   | 57.6 | % |   | $ | 86.12 |   |   | $ | 49.58 |   |

|                                                                                                                                                                                                                                                                                                 |   | Percentage Change from Three Months Ended March 31, 2010 to Three Months EndedMarch 31, 2011 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                 |   | Total Revenue                                                                                     |   |   | Occupancy |   |   | ADR |   |   | RevPAR |   |
| Total/Same-store (65 hotels)                                                                                                                                                                                                                                                                         |   |                                                                                              | 6.5    | % |   |   | 1.4 | % |   |   | 5.1 | % |   |   | 6.6 | % |
| Seasoned (46 hotels)                                                |   |                                                                                              | 2.8    | % |   |   | (2.6 | )% |   |   | 5.8 | % |   |   | 2.9 | % |
| Unseasoned (19 hotels)                                              |   |                                                                                              | 13.5   | % |   |   | 9.0 | % |   |   | 4.2 | % |   |   | 13.8 | % |

----

----

|   | ● | a 216-room hotel located in downtown Minneapolis, Minnesota for a purchase price of $10.5 million, or approximately $48,600 per key. If we complete this acquisition, we expect to convert the brand of the hotel after completing significant capital improvements of approximately $12.0 million, or approximately $56,000 per key, for a combined aggregate purchase price and renovation cost of approximately $22.6 million, or approximately $105,000 per key; and |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | a 122-room hotel located in Duluth, Georgia for a purchase price of $13.4 million, or approximately $109,426 per key.  If we complete the acquisition of this hotel, we expect to perform a standard renovation of approximately $650,000, for a combined purchase price and renovation cost of approximately $114,754 per key. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Total Debt to EBITDA Ratio | LIBOR Margin | Base Rate Margin |
|----------------------------|--------------|------------------|
| <3.50x                  | 2.50%        | 1.50%            |
| ≥3.50x and <5.00x | 3.00%        | 2.00%            |
| ≥5.00x               | 3.50%        | 2.50%            |

----

|   | ● | a maximum ratio of consolidated indebtedness (as defined in the loan documentation) to consolidated EBITDA (as defined in the loan documentation) as follows: |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Period                                | LeverageRatio |
|---------------------------------------|---------------|
| April 29, 2011 through April 29, 2012 | 6.25:1.00     |
| April 29, 2012 through April 29, 2013 | 6.00:1.00     |
| April 29, 2013 through April 29, 2014 | 5.75:1.00     |
| April 29, 2014 and thereafter         | 5.25:1.00     |

|   | ● | a minimum ratio of adjusted consolidated EBITDA (as defined in the loan documentation) to consolidated fixed charges (as defined in the loan documentation) as follows: |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Period                                | Consolidated Fixed Charge Coverage Ratio |
|---------------------------------------|------------------------------------------|
| April 29, 2011 through April 29, 2013 | 1.50:1.00                                |
| April 29, 2013 through April 29, 2014 | 1.60:1.00                                |
| April 29, 2014 and thereafter         | 1.75:1.00                                |

|   | ● | a minimum consolidated tangible net worth (as defined in the loan documentation) of not less than $228,728,000 plus 80% of the net proceeds of subsequent common equity issuances; and |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | a maximum dividend payout ratio of 95% of FFO (as defined in the loan documentation) or an amount necessary to maintain REIT tax status and avoid corporate income and excise taxes. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Brand               | Address                    | City         | County                  | State |
|---------------------|----------------------------|--------------|-------------------------|-------|
| Springhill Suites   | 306 Markham Center Drive   | Little Rock  | Pulaski                 | AR    |
| Fairfield Inn       | 6851 Tower Road            | Denver       | Denver                  | CO    |
| Hampton Inn         | 1620 Oakridge Drive        | Fort Collins | Larimer                 | CO    |
| Fairfield Inn       | 11907 W 6th Avenue         | Golden       | Jefferson               | CO    |
| Hampton Inn         | 3270 South Shoshone Street | Boise        | Ada                     | ID    |
| Hampton Inn         | 1658 Fillmore Street North | Twin Falls   | Twin Falls              | ID    |
| Residence Inn       | 7811 W Jefferson Boulevard | Fort Wayne   | Allen                   | IN    |
| Fairfield Inn       | 2930 Eaglecrest Drive      | Emporia      | Lyon                    | KS    |
| Holiday Inn Express | 2921 W. 18th Avenue        | Emporia      | Lyon                    | KS    |
| Fairfield Inn       | 1740 West Crawford Street  | Salina       | Saline                  | KS    |
| Fairfield Inn       | 7959 Essen Park Avenue     | Baton Rouge  | East Baton Rouge Parish | LA    |
| Springhill Suites   | 7979 Essen Park Avenue     | Baton Rouge  | East Baton Rouge Parish | LA    |
| TownePlace Suites   | 8735 Summa Boulevard       | Baton Rouge  | East Baton Rouge Parish | LA    |
| Hampton Inn         | 1122 Morrow Road           | Medford      | Jackson                 | OR    |
| Springhill Suites   | 250 Athens Way             | Nashville    | Davidson                | TN    |
| Hampton Inn         | 1511 South 40 East         | Provo        | Utah                    | UT    |
| Fairfield Inn       | 14595 NE 29th Place        | Bellevue     | King                    | WA    |
| Fairfield Inn       | 311 N Riverpoint Boulevard | Spokane      | Spokane                 | WA    |

|   | ● | be franchised with a nationally recognized franchisor; |
|--------|---------|--------------------------------------------------------|

|   | ● | have been in operation a minimum of one year; |
|--------|---------|-----------------------------------------------|

|   | ● | satisfy certain ownership, management and operating lessee criteria; |
|--------|---------|----------------------------------------------------------------------|

|   | ● | not be subject to material defects, such as liens, title defects, environmental contamination; and |
|--------|---------|----------------------------------------------------------------------------------------------------|

|   | ● | other standard lender criteria. |
|--------|---------|---------------------------------|

----

| Lender                                |   | Collateral                                                                                                                                                                                                                                                          |   | OutstandingPrincipalBalance as of March 31, 2011 |   | Interest Rateas ofMarch 31, 2011(1)          |   | Amortization(years) |   | MaturityDate   |
|---------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|---------------------------------------------------|--------|---------------------|--------|----------------|
| Bank of the Cascades                  |   | Residence Inn by Marriott, Portland, OR                                                                                                                                                                                                                             |   | $12,623                                               |   | Prime rate, subject to a floor of 6.00%           |   | 25                  |   | 09/30/11       |
|                                  |   |                                                                                                                                                                                                                                                                |   |                                                  |   |                                              |   |                |   |           |
| ING Investment Management(2)(13)      |   | Fairfield Inn & Suites by Marriott, Germantown, TNResidence Inn by Marriott, Germantown, TNHoliday Inn Express, Boise, IDCourtyard by Marriott, Memphis, TNHampton Inn & Suites, El Paso, TXHampton Inn, Ft. Smith, AR                                      |   | 28,594                                                |   | 5.60%                                             |   | 20                  |   | 07/01/25       |
|                                  |   |                                                                                                                                                                                                                                                                |   |                                                  |   |                                              |   |                |   |           |
| MetaBank                              |   | Holiday Inn, Boise, IDSpringHill Suites by Marriott, Lithia Springs, GA                                                                                                                                                                                             |   | 7,229                                                 |   | Prime rate, subject to a floor of 5.00%           |   | 20                  |   | 03/01/12       |
|                                  |   |                                                                                                                                                                                                                                                                |   |                                                  |   |                                              |   |                |   |           |
| Chambers Bank                         |   | Aspen Hotel & Suites, Ft. Smith, AR                                                                                                                                                                                                                             |   | 1,573                                                 |   | 6.50%                                             |   | 20                  |   | 06/24/12       |
|                                  |   |                                                                                                                                                                                                                                                                |   |                                                  |   |                                              |   |                |   |           |
| Bank of the Ozarks(3)                 |   | Hyatt Place, Portland, OR                                                                                                                                                                                                                                           |   | 6,409                                                 |   | 90-day LIBOR + 4.00%, subject to a floor of 6.75% |   | 25                  |   | 06/29/12       |
|                                  |   |                                                                                                                                                                                                                                                                |   |                                                  |   |                                              |   |                |   |           |
| ING Investment Management(4)(8) (13)  |   |  Hilton Garden Inn, Ft. Collins, CO                                                                                                                                                                                                                            |   |  7,838                                           |   |  6.34%                                       |   |  20            |   |  07/01/12 |
|                                  |   |                                                                                                                                                                                                                                                                |   |                                                  |   |                                              |   |                |   |           |
| ING Investment Management(4)(9) (13)  |   | AmericInn, Ft. Smith, ARHoliday Inn Express, Sandy, UTFairfield Inn by Marriott, Lewisville, TXHampton Inn, Denver, COHoliday Inn Express, Vernon Hills, ILHampton Inn, Fort Wayne, INCourtyard by Marriott, Missoula, MTAmericInn Hotel & Suites, Missoula, MT |   |  29,037                                          |   |  6.10%                                       |   |  20            |   |  07/01/12 |
|                                  |   |                                                                                                                                                                                                                                                                |   |                                                  |   |                                              |   |                |   |           |
| BNC National Bank(11)                 |   | Hampton Inn & Suites, Ft. Worth, TX                                                                                                                                                                                                                             |   | 5,670                                                 |   | 5.01%                                             |   | 20                  |   | 11/01/13       |
|                                  |   |                                                                                                                                                                                                                                                                |   |                                                  |   |                                              |   |                |   |           |
| First National Bank of Omaha(5)       |   | Courtyard by Marriott, Germantown, TNCourtyard by Marriott, Jackson, MSHyatt Place, Atlanta, GA                                                                                                                                                                     |   | 24,097                                                |   | 90-day LIBOR + 4.00%, subject to a floor of 5.25% |   | 20                  |   | 07/01/13       |
|                                  |   |                                                                                                                                                                                                                                                                |   |                                                  |   |                                              |   |                |   |           |
| ING Investment Management(6)(10) (13) |   | Residence Inn by Marriott, Ridgeland, MS                                                                                                                                                                                                                            |   | 6,190                                                 |   | 6.61%                                             |   | 20                  |   | 11/01/28       |
|                                  |   |                                                                                                                                                                                                                                                                |   |                                                  |   |                                              |   |                |   |           |
| General Electric Capital Corp.(12)    |   | Aspen Suites, San Antonio, TX                                                                                                                                                                                                                                       |   | 11,098                                                |   | 90-day LIBOR + 2.55%                              |   | 25                  |   | 04/01/14       |
|                                  |   |                                                                                                                                                                                                                                                                |   |                                                  |   |                                              |   |                |   |           |
| National Western Life Insurance(7)    |   | Courtyard by Marriott, Scottsdale, AZSpringHill Suites by Marriott, Scottsdale, AZ                                                                                                                                                                                  |   | 13,526                                                |   | 8.00%                                             |   | 17                  |   | 01/01/15       |
|                                  |   |                                                                                                                                                                                                                                                                |   |                                                  |   |                                              |   |                |   |           |
| BNC National Bank(11)                 |   | Holiday Inn Express & Suites, Twin Falls, ID                                                                                                                                                                                                                    |   | 5,814                                                 |   | Prime rate - 0.25% (14)                           |   | 20                  |   | 04/01/16       |
|                                  |   |                                                                                                                                                                                                                                                                |   |                                                  |   |                                              |   |                |   |           |
| Compass Bank                          |   | Courtyard by Marriott, Flagstaff, AZ                                                                                                                                                                                                                                |   | 16,493                                                |   | Prime rate - 0.25%, subject to a floor of 4.50%   |   | 20                  |   | 05/17/18       |
|                                  |   |                                                                                                                                                                                                                                                                |   |                                                  |   |                                              |   |                |   |           |
| General Electric Capital Corp.(12)    |   | SpringHill Suites by Marriott, Denver, CO                                                                                                                                                                                                                           |   | 8,581                                                 |   | 90-day LIBOR + 1.75%                              |   | 20                  |   | 04/01/18       |
|                                  |   |                                                                                                                                                                                                                                                                |   |                                                  |   |                                              |   |                |   |           |
| General Electric Capital Corp.(12)    |   | Aspen Suites, Baton Rouge, LA                                                                                                                                                                                                                                       |   | 10,942                                                |   | 90-day LIBOR + 1.80%                              |   | 25                  |   | 03/01/19       |
|                                  |   |                                                                                                                                                                                                                                                                |   |                                                  |   |                                              |   |                |   |           |
| Total                                 |   | $195,714                                                                                                                                                                                                                                                            |   |                                                  |   |                                              |   |                |

----

----

| (1) | As of March 31, 2011, the Prime rate was 3.25% and the 90-day LIBOR rate was 0.30%. |
|-----|------------------------------------------------------------------------------------------|

| (2) | The lender has the right to call the loan, which is secured by multiple hotel properties, at January 1, 2012, January 1, 2017 and January 1, 2022. At January 1, 2012, the loan begins to amortize according to a 19.5 year amortization schedule. If this loan is repaid prior to maturity, there is a prepayment penalty equal to the greater of (i) 1% of the principal being repaid and (ii) the yield maintenance premium. There is no prepayment penalty if the loan is prepaid 60 days prior to any call date. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The maturity date may be extended to June 20, 2014 based on the exercise of two, one-year extension options, subject to the satisfaction of certain conditions. If this loan is repaid prior to June 29, 2011, there is a prepayment penalty equal to 1% of the principal being repaid. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | If this loan is repaid prior to maturity, there is a prepayment penalty equal to the greater of (i) 1% of the principal being repaid and (ii) the yield maintenance premium. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Evidenced by three promissory notes, the loan secured by the Hyatt Place located in Atlanta, Georgia has a maturity date of February 1, 2014. The three promissory notes are cross-defaulted and cross-collateralized. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | The lender has the right to call the loan at November 1, 2013, 2018 and 2023. If this loan is repaid prior to maturity, there is a prepayment penalty equal to the greater of (i) 1% of the principal being repaid and (ii) the yield maintenance premium. There is no prepayment penalty if the loan is prepaid 60 days prior to any call date. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | On December 8, 2009, we entered into two cross-collateralized and cross-defaulted mortgage loans with National Western Life Insurance in the amounts of $8,650,000 and $5,350,000.  If these loans are prepaid, there is a prepayment penalty ranging from 1% to 5% of the principal being prepaid. A one-time, ten-year extension of the maturity date is permitted, subject to the satisfaction of certain conditions. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | This loan is cross-collateralized with the ING Investment Management loan secured by the following hotel properties: AmericInn, Ft. Smith, AR; Holiday Inn Express, Sandy, UT; Fairfield Inn by Marriott, Lewisville, TX; Hampton Inn, Denver, CO; Holiday Inn Express, Vernon Hills, IL; Hampton Inn, Fort Wayne, IN; Courtyard by Marriott, Missoula, MT; AmericInn Hotel & Suites, Missoula, MT. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | This loan is secured by multiple hotel properties. |
|-----|----------------------------------------------------|

| (10) | This loan is cross-collateralized with the ING Investment Management loan secured by the following hotel properties: Fairfield Inn & Suites by Marriott, Germantown, TN; Residence Inn by Marriott, Germantown, TN; Holiday Inn Express, Boise, ID; Courtyard by Marriott, Memphis, TN; Hampton Inn & Suites, El Paso, TX; Hampton Inn, Ft. Smith, AR. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | The two BNC loans are cross-defaulted. |
|------|----------------------------------------|

| (12) | The three General Electric Capital Corp. loans are cross-defaulted. Effective July 1, 2011, the interest rate on all three loans will increase to 90-day LIBOR + 4.00%. Effective August 1, 2011, all three loans will be subject to a prepayment penalty equal to 2% of the principal repaid prior to August 1, 2012, 1% of the principal repaid prior to August 1, 2013, and 0% of the principal repaid thereafter. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13) | The yield maintenance premium under each of the ING Investment Management loans is calculated as follows: (A) if the entire amount of the loan is being prepaid, the yield maintenance premium is equal to the sum of (i) the present value of the scheduled monthly installments from the date of prepayment to the maturity date, and (ii) the present value of the amount of principal and interest due on the maturity date (assuming all scheduled monthly installments due prior to the maturity date were made when due), less (iii) the outstanding principal balance as of the date of prepayment; and (B) if only a portion of the loan is being prepaid, the yield maintenance premium is equal to the sum of (i) the present value of the scheduled monthly installments on the pro rata portion of the loan being prepaid, or the release price, from the date of prepayment to the maturity date, and (ii) the present value of the pro rata amount of principal and interest due on the release price due on the maturity date (assuming all scheduled monthly installments due prior to the maturity date were made when due), less (iii) the outstanding amortized principal allocation, as defined in the loan agreement, as of the date of prepayment. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (14) | As of April 1, 2011, the interest rate on this loan was fixed at 4.81%. |
|------|-------------------------------------------------------------------------|

----

----

|                          |   | Payments Due By Period |   |
|-------------------------------|--------|------------------------|--------|
|                          |   | Total                  |   |   | Less than One Year |   |   | One to Three Years |   |   | Four to Five Years |   |   | More than Five Years |   |
| Long-term debt obligations(1) |   | $                      | 208.1  |   |   | $ | 58.6 |   |   | $ | 83.9 |   |   | $ | 24.8 |   |   | $ | 40.8 |   |
| Operating Lease obligations   |   |                   | 7.7    |   |   |   | 0.2 |   |   |   | 0.5 |   |   |   | 0.5 |   |   |   | 6.5 |   |
| Total                         |   | $                      | 215.8  |   |   | $ | 58.8 |   |   | $ | 84.4 |   |   | $ | 25.3 |   |   | $ | 47.3 |   |

----

| (1) | The amounts shown include amortization of principal on our fixed-rate and variable-rate obligations, debt maturities on our fixed-rate and variable-rate obligations and estimated interest payments on our fixed-rate obligations.  Interest payments have been included based on the weighted-average interest rate. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                          |    | Company                                         |   |   | Our Predecessor                                  |   |   | Combined                         |   |   | Our Predecessor                 |   |   | Quarter-over-Quarter |   |
|-------------------------------|---------|-------------------------------------------------|--------|--------|--------------------------------------------------|--------|--------|----------------------------------|--------|--------|---------------------------------|--------|--------|----------------------|--------|
|                          |    | Period February 14, 2011 through March 31, 2011 |   |   | Period January 1, 2011 through February 13, 2011 |   |   | Three Months EndedMarch 31, 2011 |   |   | Three MonthsEndedMarch 31, 2010 |   |   | Change               |   |
|                          |  $ |                                            |   |   | %                                                |   |
| Net income (loss)             |    | $                                               | (1,614 | )      |                                             | $      | (6,207 | )                                |   | $      | (7,821                          | )      |   | $                    | (3,556 | ) |   | $ | (4,265 | ) |   |   | (119.9 | )% |
| Depreciation and amortization |    |                                            | 3,429  |   |                                             |   | 3,429  |                             |   |   | 6,858                           |   |   |                 | 6,851  |   |   |   | 7 |   |   |   | 0.1 | % |
| Funds from Operations (FFO)   |    | $                                               | 1,815  |   |                                             |   | (2,778 | )                                |   | $      | (963                            | )      |   | $                    | 3,295  |   |   | $ | (4,258 | ) |   |   | (129.2 | )% |
|                          |    |                                            |   |   |                                             |   |   |                             |   |   |                            |   |   |                 |   |   |   |   |   |   |   |   |   |   |

|                          |   |   | Company                                         |   |   |   | Our Predecessor                                  |   |   |   | Combined                         |   |   |   | Our Predecessor                 |   |   |   | Quarter-over-QuarterChange |   |
|-------------------------------|--------|--------|-------------------------------------------------|--------|--------|--------|--------------------------------------------------|--------|--------|--------|----------------------------------|--------|--------|--------|---------------------------------|--------|--------|--------|----------------------------|--------|
|                          |   |   | Period February 14, 2011 through March 31, 2011 |   |   |   | Period January 1, 2011 through February 13, 2011 |   |   |   | Three Months EndedMarch 31, 2011 |   |   |   | Three MonthsEndedMarch 31, 2010 |   |   |   | $                          |   |   |   | % |   |
| Net income (loss)             |   | $      | (1,614                                          | )      |   | $      | (6,207                                           | )      |   | $      | (7,821                           | )      |   | $      | (3,556                          | )      |   | $      | (4,265                     | )      |   |   | (119.9 | )% |
| Depreciation and amortization |   |   | 3,429                                           |   |   |   | 3,429                                            |   |   |   | 6,858                            |   |   |   | 6,851                           |   |   |   | 7                          |   |   |   | 0.0 | % |
| Interest expense              |   |   | 3,511                                           |   |   |   | 4,666                                            |   |   |   | 8,177                            |   |   |   | 5,567                           |   |   |   | 2,610                      |   |   |   | 46.9 | % |
| Interest income               |   |   | (4                                              | )      |   |   | (7                                               | )      |   |   | (11                              | )      |   |   | (12                             | )      |   |   | 1                          |   |   |   | 0.8 | % |
| Income taxes                  |   |   | 172                                             |   |   |   | 339                                              |   |   |   | 511                              |   |   |   | 152                             |   |   |   | 359                        |   |   |   | 236.2 | % |
| EBITDA                        |   | $      | 5,494                                           |   |   | $      | 2,220                                            |   |   | $      | 7,714                            |   |   | $      | 9,002                           |   |   | $      | (1,288                     | )      |   |   | (14.3 | )% |

----

|   | ● | our 62-room hotel in Golden, Colorado; |
|--------|---------|----------------------------------------|

|   | ● | our 111-room hotel in Twin Falls, Idaho; |
|--------|---------|------------------------------------------|

|   | ● | our 52-room hotel in Missoula, Montana; |
|--------|---------|-----------------------------------------|

|   | ● | our 60-room hotel in Salina, Kansas; and |
|--------|---------|------------------------------------------|

|   | ● | our 89-room hotel in Ft. Smith, Arkansas. |
|--------|---------|-------------------------------------------|

|   | ● | our 126-room hotel in San Antonio, Texas; |
|--------|---------|-------------------------------------------|

|   | ● | our 127-room hotel in Baton Rouge, Louisiana; |
|--------|---------|-----------------------------------------------|

|   | ● | our 67-room hotel in Charleston, West Virginia; and |
|--------|---------|-----------------------------------------------------|

|   | ● | our 70-room hotel in Ft. Worth, Texas. |
|--------|---------|----------------------------------------|

----

| Item 3. | Quantitative and Qualitative Disclosures about Market Risk. |
|---------|-------------------------------------------------------------|

| Item 4. | Controls and Procedures. |
|---------|--------------------------|

----

----

| Item 1. | Legal Proceedings. |
|---------|--------------------|

|   | ● | our 127-room hotel in Baton Rouge, Louisiana; |
|--------|---------|-----------------------------------------------|

|   | ● | our 126-room hotel in San Antonio, Texas; |
|--------|---------|-------------------------------------------|

|   | ● | our 119-room hotel in Boise, Idaho; |
|--------|---------|-------------------------------------|

|   | ● | our 89-room hotel in Ft. Smith, Arkansas; |
|--------|---------|-------------------------------------------|

|   | ● | our 60-room hotel in Salina, Kansas; |
|--------|---------|--------------------------------------|

|   | ● | our 52-room hotel in Missoula, Montana; |
|--------|---------|-----------------------------------------|

|   | ● | our 62-room hotel in Golden, Colorado; |
|--------|---------|----------------------------------------|

|   | ● | our 111-room hotel in Twin Falls, Idaho; |
|--------|---------|------------------------------------------|

|   | ● | our 67-room hotel in Charleston, West Virginia; and |
|--------|---------|-----------------------------------------------------|

|   | ● | our 70-room hotel in Ft. Worth, Texas. |
|--------|---------|----------------------------------------|

| Item 1A. | Risk Factors. |
|----------|---------------|

| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
|---------|--------------------------------------------------------------|

----

|   | ● | approximately $227.2 million to reduce outstanding mortgage indebtedness and pay associated costs, as follows: |
|--------|---------|---------------------------------------------------------------------------------------------------------------------|

|   | ―approximately $89.3 million to repay in full a loan from Fortress Credit Corp., including approximately $2.1 million of exit fees, interest and legal fees; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ―approximately $78.2 million to repay in full a loan originally made by Lehman Brothers Bank, including approximately $1.4 million to pay an extinguishment premium and other transaction costs; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ―approximately $21.4 million to repay in full two loans with Marshall & Isley Bank; |
|--------|---------------------------------------------------------------------------------------------------------|

|   | ―approximately $38.3 million to repay in full two loans with First National Bank of Omaha; and |
|--------|-----------------------------------------------------------------------------------------------------------|

|   | ● | approximately $5.3 million to fund a capital expenditure reserve account under the hotel management agreement with Interstate. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------|

| Item 3. | Defaults Upon Senior Securities. |
|---------|----------------------------------|

| Item 4. | [Removed and Reserved.] |
|---------|-------------------------|

| Item 5. | Other Information. |
|---------|--------------------|

----

| Item 6. | Exhibits. |
|---------|-----------|

| ExhibitNumber |  Description of Exhibit                                                                                                                                                                                                                                                                                                                                                                                            |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1          | $30,000,000 Credit Agreement among Summit Hotel OP, LP, Summit Hotel Properties, Inc., and Deutsche Bank AG New York Branch, dated March 30, 2011 (incorporated herein by reference to Exhibit 10.1 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on April 6, 2011).                                                                                                                             |
| 10.2          | $100,000,000 Credit Agreement dated April 29, 2011 among Summit Hotel OP, LP, Summit Hotel Properties, Inc., Summit Hospitality I, LLC and Deutsche Bank AG New York Branch, Deutsche Bank Securities Inc., Royal Bank of Canada, KeyBank National Association and Regions Bank (incorporated herein by reference to Exhibit 10.1 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on May 2, 2011). |
| 10.3          | Amendment Letter to $30,000,000 Credit Agreement among Summit Hotel OP, LP, Summit Hotel Properties, Inc., and Deutsche Bank AG New York Branch, dated April 26, 2011 (incorporated herein by reference to Exhibit 10.2 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on May 2, 2011).                                                                                                           |
| 10.4          | First Amended and Restated Agreement of Limited Partnership of Summit Hotel OP, LP, dated February 14, 2011 (incorporated herein by reference to Exhibit 10.1 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                                                                                                                               |
| 10.5          | Tax Protection Agreement, dated February 10, 2011, between the Operating Partnership and The Summit Group, Inc. (incorporated herein by reference to Exhibit 10.2 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                                                                                                                           |
| 10.6          | Transition Services Agreement, dated February 14, 2011, between the Operating Partnership and The Summit Group, Inc. (incorporated herein by reference to Exhibit 10.3 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                                                                                                                      |
| 10.7          | Amended and Restated Hotel Management Agreement, dated February 14, 2011, among Interstate Management Company, LLC and the subsidiaries of the Company party thereto (incorporated herein by reference to Exhibit 10.4 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                                                                      |
| 10.8          | Loan Modification Agreement, dated February 14, 2011, among Summit Hotel Properties, LLC, Summit Hotel OP, LP and GE Commercial Capital of Utah LLC (loan in the original principal amount of $11.4 million) (incorporated herein by reference to Exhibit 10.5 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                              |
| 10.9          | Loan Modification Agreement, dated February 14, 2011, among Summit Hotel Properties, LLC, Summit Hotel OP, LP and GE Commercial Capital of Utah LLC (loan in the original principal amount of $9.5 million) (incorporated herein by reference to Exhibit 10.6 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                               |
| 10.10         | Loan Modification Agreement, dated February 14, 2011, among Summit Hotel Properties, LLC, Summit Hotel OP, LP and GE Commercial Capital of Utah LLC (loan in the original principal amount of $11.3 million) (incorporated herein by reference to Exhibit 10.7 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                              |
| 10.11         | Employment Agreement, dated February 14, 2011, between the Company and Kerry W. Boekelheide (incorporated herein by reference to Exhibit 10.8 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                                                                                                                                               |
| 10.12         | Employment Agreement, dated February 14, 2011, between the Company and Daniel P. Hansen (incorporated herein by reference to Exhibit 10.9 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                                                                                                                                                   |
| 10.13         | Employment Agreement, dated February 14, 2011, between the Company and Craig J. Aniszewski (incorporated herein by reference to Exhibit 10.10 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                                                                                                                                               |

----

| 10.14        | Employment Agreement, dated February 14, 2011, between the Company and Stuart J. Becker (incorporated herein by reference to Exhibit 10.11 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011). |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.15        | Employment Agreement, dated February 14, 2011, between the Company and Ryan A. Bertucci (incorporated herein by reference to Exhibit 10.12 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011). |
| 10.16        | Summit Hotel Properties, Inc. 2011 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.13 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                |
| 10.17† | Accession Agreement, dated May 13, 2011, among Summit Hotel OP, LP, Deutsche Bank AG New York Branch, and U.S. Bank National Association                                                                                               |
| 31.1         | Certification of Chief Executive Officer of Summit Hotel Properties, Inc. pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                  |
| 31.2         | Certification of Chief Financial Officer Summit Hotel Properties, Inc. pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                     |
| 31.3         | Certification of Chief Executive Officer of Summit Hotel OP, LP pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                            |
| 31.4         | Certification of Chief Financial Officer Summit Hotel OP, LP pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                               |
| 32.1         | Certification of Chief Executive Officer Summit Hotel Properties, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                       |
| 32.2         | Certification of Chief Financial Officer Summit Hotel Properties, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                       |
| 32.3         | Certification of Chief Executive Officer Summit Hotel OP, LP pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                 |
| 32.4         | Certification of Chief Financial Officer Summit Hotel OP, LP pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                 |

----

----

|                                                                                                                          | SUMMIT HOTEL PROPERTIES, INC. (registrant) |                      |
|-------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|---------------------------|
|                                                                                                                          |                                       |                      |   |
| Date:                  May 16, 2011 | By:                                        | /s/ Stuart J. Becker |   |
|                                                                                                                          |                                       | Stuart J. Becker          |   |
|                                                                                                                          |                                       | Chief Financial Officer   |   |
|                                                                                                                          |                                       |                      |   |

|                                                                                                                          | SUMMIT HOTEL OP, LP (registrant) |   |
|-------------------------------------------------------------------------------------------------------------------------------|----------------------------------|--------|
|                                                                                                                          |                             |   |   |   |   |
|                                                                                                                          | By:                              |   | Summit Hotel GP, LLC, its general partner |   |
|                                                                                                                          |                             |   |   |   |   |
|                                                                                                                          |                             | By:    |   | Summit Hotel Properties, Inc., its sole member |   |
|                                                                                                                          |                             |   |   |   |   |
| Date:                  May 16, 2011 |                             |   | By: | /s/ Stuart J. Becker |   |
|                                                                                                                          |                             |   |   | Stuart J. Becker |   |
|                                                                                                                          |                             |   |   | Chief Financial Officer |   |
|                                                                                                                          |                             |   |   |   |   |

----

| ExhibitNumber |  Description of Exhibit                                                                                                                                                                                                                                                                                                                                                                                            |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1          | $30,000,000 Credit Agreement among Summit Hotel OP, LP, Summit Hotel Properties, Inc., and Deutsche Bank AG New York Branch, dated March 30, 2011 (incorporated herein by reference to Exhibit 10.1 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on April 6, 2011).                                                                                                                             |
| 10.2          | $100,000,000 Credit Agreement dated April 29, 2011 among Summit Hotel OP, LP, Summit Hotel Properties, Inc., Summit Hospitality I, LLC and Deutsche Bank AG New York Branch, Deutsche Bank Securities Inc., Royal Bank of Canada, KeyBank National Association and Regions Bank (incorporated herein by reference to Exhibit 10.1 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on May 2, 2011). |
| 10.3          | Amendment Letter to $30,000,000 Credit Agreement among Summit Hotel OP, LP, Summit Hotel Properties, Inc., and Deutsche Bank AG New York Branch, dated April 26, 2011 (incorporated herein by reference to Exhibit 10.2 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on May 2, 2011).                                                                                                           |
| 10.4          | First Amended and Restated Agreement of Limited Partnership of Summit Hotel OP, LP, dated February 14, 2011 (incorporated herein by reference to Exhibit 10.1 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                                                                                                                               |
| 10.5          | Tax Protection Agreement, dated February 10, 2011, between the Operating Partnership and The Summit Group, Inc. (incorporated herein by reference to Exhibit 10.2 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                                                                                                                           |
| 10.6          | Transition Services Agreement, dated February 14, 2011, between the Operating Partnership and The Summit Group, Inc. (incorporated herein by reference to Exhibit 10.3 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                                                                                                                      |
| 10.7          | Amended and Restated Hotel Management Agreement, dated February 14, 2011, among Interstate Management Company, LLC and the subsidiaries of the Company party thereto (incorporated herein by reference to Exhibit 10.4 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                                                                      |
| 10.8          | Loan Modification Agreement, dated February 14, 2011, among Summit Hotel Properties, LLC, Summit Hotel OP, LP and GE Commercial Capital of Utah LLC (loan in the original principal amount of $11.4 million) (incorporated herein by reference to Exhibit 10.5 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                              |
| 10.9          | Loan Modification Agreement, dated February 14, 2011, among Summit Hotel Properties, LLC, Summit Hotel OP, LP and GE Commercial Capital of Utah LLC (loan in the original principal amount of $9.5 million) (incorporated herein by reference to Exhibit 10.6 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                               |
| 10.10         | Loan Modification Agreement, dated February 14, 2011, among Summit Hotel Properties, LLC, Summit Hotel OP, LP and GE Commercial Capital of Utah LLC (loan in the original principal amount of $11.3 million) (incorporated herein by reference to Exhibit 10.7 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                              |
| 10.11         | Employment Agreement, dated February 14, 2011, between the Company and Kerry W. Boekelheide (incorporated herein by reference to Exhibit 10.8 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                                                                                                                                               |
| 10.12         | Employment Agreement, dated February 14, 2011, between the Company and Daniel P. Hansen (incorporated herein by reference to Exhibit 10.9 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                                                                                                                                                   |
| 10.13         | Employment Agreement, dated February 14, 2011, between the Company and Craig J. Aniszewski (incorporated herein by reference to Exhibit 10.10 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                                                                                                                                               |
| 10.14         | Employment Agreement, dated February 14, 2011, between the Company and Stuart J. Becker (incorporated herein by reference to Exhibit 10.11 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                                                                                                                                                  |
| 10.15         | Employment Agreement, dated February 14, 2011, between the Company and Ryan A. Bertucci (incorporated herein by reference to Exhibit 10.12 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011).                                                                                                                                                                                  |

----

| 10.16        | Summit Hotel Properties, Inc. 2011 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.13 to Current Report on Form 8-K filed by Summit Hotel Properties, Inc. on February 18, 2011). |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.17† | Accession Agreement, dated May 13, 2011, among Summit Hotel OP, LP, Deutsche Bank AG New York Branch, and U.S. Bank National Association                                                                |
| 31.1         | Certification of Chief Executive Officer of Summit Hotel Properties, Inc. pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                   |
| 31.2         | Certification of Chief Financial Officer Summit Hotel Properties, Inc. pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                      |
| 31.3         | Certification of Chief Executive Officer of Summit Hotel OP, LP pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                             |
| 31.4         | Certification of Chief Financial Officer Summit Hotel OP, LP pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                |
| 32.1         | Certification of Chief Executive Officer Summit Hotel Properties, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                        |
| 32.2         | Certification of Chief Financial Officer Summit Hotel Properties, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                        |
| 32.3         | Certification of Chief Executive Officer Summit Hotel OP, LP pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                  |
| 32.4         | Certification of Chief Financial Officer Summit Hotel OP, LP pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                  |