##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the Quarterly Period Ended June 30, 2009
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the Transition Period from ______________ to ______________
 Commission File Number: 000-51955
 SUMMIT HOTEL PROPERTIES, LLC
  South Dakota
 20-0617340
 2701 South Minnesota Avenue, Suite 6
Sioux Falls, SD 57105
 (605) 361-9566
  þ o
  o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer þ
    
    Smaller reporting company o(Do not check if a Smaller reporting company)
  o þ




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##### 



TABLE OF CONTENTS
 PagePART IItem 1. Financial Statements
    
    
    3Condensed Consolidated Balance Sheets as of June 30, 2009 (Unaudited) and December 31,
2008
    
    
    3Condensed Consolidated Statements of Operations for the three and six months ended
June 30, 2009 and 2008 (Unaudited)
    
    
    4Condensed Consolidated Statement of Changes in Members Equity for the six months
ended June 30, 2009 (Unaudited)
    
    
    5Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2009
and 2008 (Unaudited)
    
    
    6Notes to Condensed Consolidated Financial Statements (Unaudited)
    
    
    8Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    14Item 3. Quantitative and Qualitative Disclosures about Market Risk
    
    
    30Item 4. Controls and Procedures
    
    
    31PART IIItem 1. Legal Proceedings
    
    
    31Item 1A. Risk Factors
    
    
    31Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    32Item 3. Defaults Upon Senior Securities
    
    
    32Item 4. Submission of Matters to a Vote of Security Holders
    
    
    32Item 5. Other Information
    
    
    32Item 6. Exhibits
    
    
    33Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2Exhibit 99.1EX-31.1EX-31.2EX-32.1EX-32.2EX-99.1
  2




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##### Table of Contents



PART I
FINANCIAL INFORMATION
 
 Item 1.
    
    Financial Statements
 SUMMIT HOTEL PROPERTIES, LLC
 
 CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 JUNE 30, 2009 AND DECEMBER 31, 2008
 
 2009
    
    
    2008ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    11,151,228
    
    
    $
    18,153,435Restricted cash
    
    
    1,863,334
    
    
    
    1,679,027Trade receivables
    
    
    3,827,371
    
    
    
    2,622,164Prepaid expenses and other
    
    
    1,030,227
    
    
    
    2,170,955Assets held for sale
    
    
    2,931,707
    
    
    
    Total current assets
    
    
    20,803,867
    
    
    
    24,625,581PROPERTY AND EQUIPMENT, NET
    
    
    497,840,545
    
    
    
    461,894,270OTHER ASSETSDeferred charges and other assets, net
    
    
    5,330,343
    
    
    
    5,664,796Restricted cash
    
    
    1,969,305
    
    
    
    2,570,374Total other assets
    
    
    7,299,648
    
    
    
    8,235,170TOTAL ASSETS
    
    $
    525,944,060
    
    
    $
    494,755,021LIABILITIES AND MEMBERS EQUITYCURRENT LIABILITIESCurrent portion of long-term debt
    
    $
    87,068,500
    
    
    $
    19,508,600Lines of credit
    
    
    19,931,007
    
    
    
    12,288,500Notes payable
    
    
    
    
    
    
    7,469,865Accounts payable
    
    
    11,014,640
    
    
    
    3,770,908Related party accounts payable
    
    
    2,354,696
    
    
    
    3,173,179Accrued expenses
    
    
    8,595,517
    
    
    
    9,956,372Total current liabilities
    
    
    128,964,360
    
    
    
    56,167,424LONG-TERM DEBT, NET OF CURRENT PORTION
    
    
    304,623,954
    
    
    
    350,826,837COMMITMENTS AND CONTINGENCIESMEMBERS EQUITYClass A, 1,166.62 units issued and outstanding
    
    
    71,106,844
    
    
    
    76,512,442Class A-1, 327.04 and 196.50 units issued and
outstanding, respectively
    
    
    26,719,349
    
    
    
    15,855,756Class B, 81.36 units issued and outstanding
    
    
    2,905,817
    
    
    
    3,007,247Class C, 173.60 units issued and outstanding
    
    
    (6,565,889
    )
    
    
    (5,990,222
    )Total Summit Hotel Properties, LLC members equity
    
    
    94,166,121
    
    
    
    89,385,223Noncontrolling interest
    
    
    (1,810,375
    )
    
    
    (1,624,463
    )Total equity
    
    
    92,355,746
    
    
    
    87,760,760TOTAL LIABILITIES AND MEMBERS EQUITY
    
    $
    525,944,060
    
    
    $
    494,755,021
  3




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SUMMIT HOTEL PROPERTIES, LLC
 
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
 FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2009 AND 2008
 
 Three Months Ended
    
    
    Six Months EndedJune 30, 2009
    
    
    June 30, 2008
    
    
    June 30, 2009
    
    
    June 30, 2008REVENUESRoom revenues
    
    $
    30,789,382
    
    
    $
    34,980,505
    
    
    $
    59,475,561
    
    
    $
    66,803,716Other hotel operations revenues
    
    
    502,761
    
    
    
    575,667
    
    
    
    1,118,314
    
    
    
    1,133,74031,292,143
    
    
    
    35,556,172
    
    
    
    60,593,875
    
    
    
    67,937,456COSTS AND EXPENSESDirect hotel operations
    
    
    10,683,710
    
    
    
    10,589,007
    
    
    
    20,472,632
    
    
    
    20,414,898Other hotel operating expenses
    
    
    4,032,428
    
    
    
    3,653,478
    
    
    
    8,150,996
    
    
    
    7,261,028General, selling and administrative
    
    
    6,419,013
    
    
    
    6,387,106
    
    
    
    11,970,928
    
    
    
    12,150,369Repairs and maintenance
    
    
    1,826,046
    
    
    
    2,441,021
    
    
    
    3,637,602
    
    
    
    5,145,419Depreciation and amortization
    
    
    5,761,056
    
    
    
    5,586,776
    
    
    
    11,383,720
    
    
    
    11,153,61328,722,253
    
    
    
    28,657,388
    
    
    
    55,615,878
    
    
    
    56,125,327INCOME FROM OPERATIONS
    
    
    2,569,890
    
    
    
    6,898,784
    
    
    
    4,977,997
    
    
    
    11,812,129OTHER INCOME (EXPENSE)Interest income
    
    
    8,045
    
    
    
    43,810
    
    
    
    18,419
    
    
    
    91,809Interest (expense)
    
    
    (4,221,005
    )
    
    
    (4,254,285
    )
    
    
    (8,337,655
    )
    
    
    (8,754,707
    )Gain (loss) on disposal of assets
    
    
    24,631
    
    
    
    
    
    
    
    24,560
    
    
    
    (3,964
    )(4,188,329
    )
    
    
    (4,210,475
    )
    
    
    (8,294,676
    )
    
    
    (8,666,862
    )INCOME (LOSS) FROM CONTINUING
OPERATIONS
    
    
    (1,618,439
    )
    
    
    2,688,309
    
    
    
    (3,316,679
    )
    
    
    3,145,267INCOME (LOSS) FROM
DISCONTINUED OPERATIONS
    
    
    1,696,264
    
    
    
    1,750,739
    
    
    
    1,800,544
    
    
    
    2,042,687NET INCOME (LOSS) BEFORE INCOME TAXES
    
    
    77,825
    
    
    
    4,439,048
    
    
    
    (1,516,135
    )
    
    
    5,187,954STATE INCOME TAX (EXPENSE)
    
    
    
    
    
    
    (309,000
    )
    
    
    
    
    
    
    (309,000
    )NET INCOME (LOSS)
    
    
    77,825
    
    
    
    4,130,048
    
    
    
    (1,516,135
    )
    
    
    4,878,954NET INCOME (LOSS) ATTRIBUTABLE TO
NONCONTROLLING INTEREST
    
    
    (62,924
    )
    
    
    72,655
    
    
    
    (185,912
    )
    
    
    317,087NET INCOME (LOSS) ATTRIBUTABLE TO
SUMMIT HOTEL PROPERTIES, LLC
    
    $
    140,749
    
    
    $
    4,057,393
    
    
    $
    (1,330,223
    )
    
    $
    4,561,867BASIC AND DILUTED EARNINGS
PER $100,000 CAPITAL UNIT
    
    $
    82.16
    
    
    $
    2,609.54
    
    
    $
    (792.13
    )
    
    $
    2,934.00WEIGHTED AVERAGE NUMBER OF UNITS
OUTSTANDING FOR CALCULATION OF
BASIC AND DILUTED EARNINGS PER
CAPITAL UNIT (based on $100,000
investment)
    
    
    1,713.14
    
    
    
    1,554.83
    
    
    
    1,679.29
    
    
    
    1,554.83
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SUMMIT HOTEL PROPERTIES, LLC
 
 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS EQUITY
(UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2009
 Equity# of
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Attributable toCapital
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    NoncontrollingUnits
    
    
    Class A
    
    
    Class A-1
    
    
    Class B
    
    
    Class C
    
    
    Interest
    
    
    TotalBALANCES, JANUARY 1, 2009
    
    
    1,618.08
    
    
    $
    76,512,442
    
    
    $
    15,855,756
    
    
    $
    3,007,247
    
    
    $
    (5,990,222
    )
    
    $
    (1,624,463
    )
    
    $
    87,760,760Class A-1 units issued
in private placement
    
    
    130.54
    
    
    
    
    
    
    
    11,965,152
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    11,965,152Net Income (Loss)
    
    
    
    
    
    
    (574,217
    )
    
    
    (78,909
    )
    
    
    (101,430
    )
    
    
    (575,667
    )
    
    
    (185,912
    )
    
    
    (1,516,135
    )Distributions to members
    
    
    
    
    
    
    (4,831,381
    )
    
    
    (1,022,650
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,854,031
    )BALANCES, JUNE 30, 2009
    
    
    1,748.62
    
    
    $
    71,106,844
    
    
    $
    26,719,349
    
    
    $
    2,905,817
    
    
    $
    (6,565,889
    )
    
    $
    (1,810,375
    )
    
    $
    92,355,746
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SUMMIT HOTEL PROPERTIES, LLC
 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 2009 AND 2008
 2009
    
    
    2008OPERATING ACTIVITIESNet income (loss)
    
    $
    (1,330,223
    )
    
    $
    4,561,867Adjustments to reconcile net income to net cash from operating
activities:Depreciation and amortization
    
    
    11,476,226
    
    
    
    11,769,572Unsuccessful project costs
    
    
    815,209
    
    
    
    Noncontrolling interest in operations of consolidated LLC
    
    
    (185,912
    )
    
    
    317,087(Gain) loss on disposal of assets
    
    
    (1,619,446
    )
    
    
    (1,032,394
    )Changes in current assets and liabilities:Trade receivables
    
    
    (1,205,207
    )
    
    
    (1,848,222
    )Prepaid expenses and other
    
    
    1,140,728
    
    
    
    912,161Accounts payable and related party accounts payable
    
    
    (4,036,052
    )
    
    
    (2,931,278
    )Accrued expenses
    
    
    (1,359,951
    )
    
    
    646,982NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
    
    
    3,695,372
    
    
    
    12,395,775INVESTING ACTIVITIESLand and hotel acquisitions and construction in progress
    
    
    (8,531,400
    )
    
    
    Purchases of other property & equipment
    
    
    (6,376,188
    )
    
    
    (5,365,986
    )Proceeds from asset dispositions, net of closing costs
    
    
    413,751
    
    
    
    4,009,927Restricted cash released (funded)
    
    
    416,762
    
    
    
    (350,414
    )NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES
    
    
    (14,077,075
    )
    
    
    (1,706,473
    )FINANCING ACTIVITIESProceeds from issuance of long-term debt
    
    
    
    
    
    
    3,737,000Principal payments on long-term debt
    
    
    (3,307,485
    )
    
    
    (8,333,759
    )Financing fees on long-term debt
    
    
    (467,492
    )
    
    
    (251,892
    )Proceeds from issuance of notes payable and line of credit
    
    
    3,768,831
    
    
    
    6,083,354Principal payments on notes payable and line of credit
    
    
    (276,329
    )
    
    
    Proceeds from equity contributions
    
    
    9,516,002
    
    
    
    Distributions to members
    
    
    (5,854,031
    )
    
    
    (8,254,003
    )Distributions to noncontrolling interest
    
    
    
    
    
    
    (306,000
    )NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES
    
    
    3,379,496
    
    
    
    (7,325,300
    )NET CHANGE IN CASH AND CASH EQUIVALENTS
    
    
    (7,002,207
    )
    
    
    3,364,002CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD
    
    
    18,153,435
    
    
    
    7,776,395END OF PERIOD
    
    $
    11,151,228
    
    
    $
    11,140,397
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SUMMIT HOTEL PROPERTIES, LLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2009 AND 2008
 2009
    
    
    2008SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:Cash payments for interest, net of the amounts capitalized below
    
    $
    8,347,799
    
    
    $
    9,227,827Interest capitalized
    
    $
    1,827,091
    
    
    $
    1,914,634Cash payments for state income taxes
    
    $
    526,053
    
    
    $
    641,295SUPPLEMENTAL DISCLOSURE OF
NON-CASH FINANCIAL INFORMATION:Acquisitions of hotel properties and land through issuance
of debt
    
    $
    
    
    
    $
    1,222,116Construction in progress financed through related party
accounts payable
    
    $
    740,101
    
    
    $
    4,407,589Construction in progress financed through accounts payable
    
    $
    9,721,200
    
    
    $
    Construction in progress financed through issuance
of debt
    
    $
    27,304,006
    
    
    $
    13,120,787Conversion of notes payable to long-term debt
    
    $
    
    
    
    $
    3,430,864Issuance of long-term debt to refinance existing
long-term debt
    
    $
    8,440,000
    
    
    $
    9,925,237Conversion of debt to equity
    
    $
    2,449,150
    
    
    $
    Sale proceeds used to payoff long-term debt
    
    $
    3,510,214
    
    
    $
    
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SUMMIT HOTEL PROPERTIES, LLC
 
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 JUNE 30, 2009
 NOTE 1
- SELECTED SUPPLEMENTARY INFORMATION
 Basis of Presentation
   Use of Estimates
  Adopted Accounting Standards
 Determining Fair Value When the Volume
and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying
Transactions that are not Orderly
 Interim Disclosures about
Fair Value of Financial Instruments
 Noncontrolling Interests in Consolidated Financial
Statements-an Amendment to ARB No.51, or SFAS No. 160
  8




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SUMMIT HOTEL PROPERTIES, LLC
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 JUNE 30, 2009
  Business
Combinations
  Disclosures about
Derivative Instruments and Hedging Activities
 Subsequent Events
 Future Adoption of Accounting Standards
 Amendments to FASB Interpretation No. 46 (R) Consolidation of Variable Interest Entities
 The FASB Accounting Standards Codification and the
Hierarchy of Generally Accepted Accounting Principles a Replacement of FASB Statement No. 162.
  9




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SUMMIT HOTEL PROPERTIES, LLC
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 JUNE 30, 2009
  Fair Value
     Assets Held for Sale
    2009
    
    
    2008Land
    
    $
    
    
    
    $
    Building
    
    
    3,516,016
    
    
    
    Furniture, fixtures and equipment
    
    
    301,751
    
    
    
    3,817,767
    
    
    
    Less accumulated depreciation
    
    
    886,060
    
    
    
    $
    2,931,707
    
    
    $
    
  10




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SUMMIT HOTEL PROPERTIES, LLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2009 AND 2008
 Discontinued Operations
 nd rd
  Three Months Ended
    
    
    Six Months EndedJune 30, 2009
    
    
    June 30, 2008
    
    
    June 30, 2009
    
    
    June 30, 2008REVENUES
    
    $
    456,388
    
    
    $
    2,939,989
    
    
    $
    967,042
    
    
    $
    5,444,024COSTS AND EXPENSESDirect hotel operations
    
    
    137,834
    
    
    
    848,732
    
    
    
    297,811
    
    
    
    1,663,894Other hotel operating expenses
    
    
    48,342
    
    
    
    293,017
    
    
    
    113,668
    
    
    
    595,711General, selling and administrative
    
    
    88,767
    
    
    
    471,437
    
    
    
    189,402
    
    
    
    917,647Repairs and maintenance
    
    
    15,243
    
    
    
    76,622
    
    
    
    32,948
    
    
    
    152,755Depreciation and amortization
    
    
    48,430
    
    
    
    308,024
    
    
    
    92,506
    
    
    
    615,959338,616
    
    
    
    1,997,832
    
    
    
    726,335
    
    
    
    3,945,966INCOME FROM OPERATIONS
    
    
    117,772
    
    
    
    942,157
    
    
    
    240,707
    
    
    
    1,498,058OTHER INCOME (EXPENSE)Interest income
    
    
    
    
    
    
    7,419
    
    
    
    116
    
    
    
    11,391Interest (expense)
    
    
    (16,394
    )
    
    
    (235,195
    )
    
    
    (35,165
    )
    
    
    (503,120
    )Gain (loss) on disposal of assets
    
    
    1,594,886
    
    
    
    1,036,358
    
    
    
    1,594,886
    
    
    
    1,036,3581,578,492
    
    
    
    808,582
    
    
    
    1,559,837
    
    
    
    544,629INCOME
(LOSS) FROM DISCONTINUED OPERATIONS
    
    $
    1,696,264
    
    
    $
    1,750,739
    
    
    $
    1,800,544
    
    
    $
    2,042,687
 Acquisitions
 Business Combinations
  11




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SUMMIT HOTEL PROPERTIES, LLC

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 2009
  Accrued Expenses
  2009
    
    

    2008Accrued taxes
    
    $
    4,892,185
    
    
    $
    5,910,209Accrued salaries and benefits
    
    
    1,279,375
    
    
    
    1,838,615Accrued interest
    
    
    1,192,573
    
    
    
    1,109,577Other accrued expenses
    
    
    1,231,384
    
    
    
    1,097,971$
    8,595,517
    
    
    $
    9,956,372
 Note Obligations
    Commitments/Agreements
  Subsequent Events
   12




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SUMMIT HOTEL PROPERTIES, LLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2009 AND 2008
  rd
 13




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##### Table of Contents



Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
 Forward-Looking Statements
  Overview
   14




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##### Table of Contents



Critical Accounting Policies
 Property and Equipment
  Capitalized Development and Interest Costs
  Impairment of Long-Lived Assets
    15




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##### Table of Contents



Consolidation Policy
    Revenue Recognition
  Results of Operations
    16




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##### Table of Contents



Three Months Ended June 30, 2009 Compared with Three Months Ended June 30, 2008
 Revenues
   Three Months Ended
    
    
    Three Months EndedJune 30,
    
    
    June 30,2009
    
    
    2008
    
    
    Increase/(Decrease)All Company HotelsRevPAR
    
    $
    58.04
    
    
    $
    71.27
    
    
    
    ($13.23
    )Average Daily Rate
    
    $
    86.97
    
    
    $
    100.45
    
    
    
    ($13.48
    )Occupancy Rate
    
    
    66.73
    %
    
    
    70.95
    %
    
    
    (4.22
    %)
   17




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##### Table of Contents



Hotel Operating Expenses
    Depreciation
  18




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##### Table of Contents



Management Expense
  Repairs and Maintenance
  Net Income (Loss)
  19




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##### Table of Contents



Six Months Ended June 30, 2009 Compared with Six Months Ended June 30, 2008
 Revenues
   Six Months Ended
    
    Six Months EndedJune 30,
    
    June 30,2009
    
    2008
    
    Increase/(Decrease)All Company HotelsRevPAR
    
    $
    56.62
    
    
    $
    67.78
    
    
    
    ($11.16
    )Average Daily Rate
    
    $
    89.07
    
    
    $
    101.50
    
    
    
    ($12.43
    )Occupancy Rate
    
    
    63.57
    %
    
    
    66.78
    %
    
    
    (3.21
    %)
    Hotel Operating Expenses
  20




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Depreciation
  Management Expense
  21




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Repairs and Maintenance
  Net Income (Loss)
  Seasonality and Diversification
  Liquidity and Capital Resources
 Cash From Operating Activities
  22




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Cash From Investing Activities
  23




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Cash From Financing Activities
   1 2 3 4
  24




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25




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Uses of Cash
   Additional Information Concerning Sources and Uses of Cash
  26




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27




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##### Table of Contents



Acquisition
    
    OpeningLocation
    
    # Rooms
    
    Franchise
    
    Status
    
    Date
    
    Date (1)Houston, TX (2)
    
    118
    
    Springhill Suites
    
    Future Construction
    
    2/15/07
    
    TBDJacksonville, FL(2)
    
    136
    
    Aloft
    
    Under Construction
    
    11/29/06
    
    08/09Jacksonville, FL(2)
    
    119
    
    Holiday Inn
    
    Future Construction
    
    11/29/06
    
    TBDFlagstaff, AZ (2)
    
    164
    
    Courtyard by Marriott
    
    Under Construction
    
    4/5/06
    
    09/09Portland, OR (2)(3)
    
    124
    
    Residence Inn
    
    Under Construction
    
    6/13/07
    
    09/09Portland, OR (2)(3)
    
    136
    
    Hyatt Place
    
    Under Construction
    
    6/13/07
    
    11/09El Paso, TX (2)
    
    101
    
    Hampton Inn & Suites
    
    Future Construction
    
    7/16/07
    
    TBDEl Paso, TX (2)
    
    121
    
    Courtyard by Marriott
    
    Future Construction
    
    7/16/07
    
    TBDFt. Myers, FL (2)
    
    149
    
    Hyatt Place
    
    Under Construction
    
    8/30/07
    
    10/09Boise, ID(2)
    
    120
    
    Holiday Inn Express & Suites
    
    Future Construction
    
    10/1/04
    
    TBDTwin Falls, ID
    
    91
    
    Holiday Inn Express & Suites
    
    Construction Completed
    
    2/1/08
    
    03/09Twin Falls, ID(2)
    
    116
    
    Courtyard by Marriott
    
    Future Construction
    
    12/9/08
    
    TBDSan Antonio, TX(2)
    
    TBD
    
    Hilton Garden Inn
    
    Future Construction
    
    1/22/07
    
    TBDSan Antonio, TX
    
    TBD
    
    TBD
    
    Future Construction
    
    1/22/07
    
    TBDSpokane, WA(2)
    
    105
    
    Courtyard by Marriott
    
    Future Construction
    
    7/31/08
    
    TBDSpokane, WA(2)
    
    108
    
    Springhill Suites
    
    Future Construction
    
    7/31/08
    
    TBDMissoula, MT(2)
    
    100
    
    Fairfield Inn & Suites
    
    Future Construction
    
    7/17/08
    
    TBD
 
 (1)
    
    The opening date is estimated and is subject to change.(2)
    
    Number of rooms and franchise indicate our plans as of August 1, 2009, which are
subject to change.(3)
    
    Real estate is subject to a ground lease.   28




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##### Table of Contents



Recent Developments
 Acquisitions and Dispositions
  Location
    
    # Rooms
    
    Franchise
    
    Property Sold/Purchased
    
    Status
    
    Closing Date (1)St. Joseph, MO
    
    
    65
    
    
    Comfort Suites
    
    Hotel
    
    Sold
    
    5/20/2009Ellensburg, WA
    
    
    52
    
    
    Comfort Inn
    
    Hotel
    
    Under Contract to be Sold
    
    8/12/2009
 
 (1)
    
    For properties under contract, the closing date is estimated. Closing on the
Ellensburg, WA hotel has been slightly delayed, and is rescheduled for August 14, 2009.  Commitments and Contingencies
  29




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##### Table of Contents



Off-Balance Sheet Arrangements
  
 Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
     30




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##### Table of Contents



Item 4.
    
    Controls and Procedures
   
 PART II
OTHER INFORMATION
 
 Item 1.
    
    Legal Proceedings
    
 Item 1A.
    
    Risk Factors
  31




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##### Table of Contents



Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
  
 Item 3.
    
    Defaults Upon Senior Securities
  
 Item 4.
    
    Submission of Matters to a Vote of Security Holders
  
 Item 5.
    
    Other Information
  32




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##### Table of Contents



Item 6. Exhibits
  ExhibitNumber
    
    Description of Exhibit31.1
    
    Certification pursuant to
Rule 13a-14 under the Securities Exchange Act of 1934 -
Chief Executive Officer.31.2
    
    Certification pursuant to
Rule 13a-14 under the Securities Exchange Act of 1934 - Chief
Financial Officer.32.1
    
    Certification pursuant to Section 1350 of Chapter 63 of Title 18 of the United States
Code - Chief Executive Officer.32.2
    
    Certification pursuant to Section 1350 of Chapter 63 of Title 18 of the United States
Code - Chief Financial Officer.99.1
    
    Reconciliation of Non-GAAP Financial Measure
 33




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##### Table of Contents



SIGNATURES
  SUMMIT HOTEL PROPERTIES, LLCDate: August 14, 2009
    By:
    /s/ Kerry W. BoekelheideKerry W. BoekelheideChief Executive Officer and ManagerDate: August 14, 2009
    By:
    /s/ Daniel P. HansenDaniel P. HansenChief Financial Officer and Manager 34




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##### Table of Contents



EXHIBIT INDEX
 31.1
    
    Certification pursuant to
Rule 13a-14 under the Securities Exchange Act of 1934 -
Chief Executive Officer.31.2
    
    Certification pursuant to
Rule 13a-14 under the Securities Exchange Act of 1934 - Chief
Financial Officer.32.1
    
    Certification pursuant to Section 1350 of Chapter 63 of Title 18 of the United States
Code - Chief Executive Officer.32.2
    
    Certification pursuant to Section 1350 of Chapter 63 of Title 18 of the United States
Code - Chief Financial Officer.99.1
    
    Reconciliation of Non-GAAP Financial Measure
 35