##### 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 September 30, 2006
 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 þ
 o þ




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##### 



TABLE OF CONTENTS
 PagePART IItem 1. Financial Statements
    
    
    3Condensed Consolidated Balance Sheets as of September 30, 2006 (Unaudited) and
December 31, 2005
    
    
    3Condensed Consolidated Statements of Operations for the three months and nine months
ended September 30, 2006 and 2005 (Unaudited)
    
    
    4Condensed Consolidated Statements of Changes in Members Equity for the nine months
ended September 30, 2006 (Unaudited)
    
    
    5Condensed Consolidated Statements of Cash Flows for the nine months ended September
30, 2006 and 2005 (Unaudited)
    
    
    6Notes to Condensed Consolidated Financial Statements (Unaudited)
    
    
    7Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    12Item 3. Quantitative and Qualitative Disclosures about Market Risk
    
    
    25Item 4. Controls and Procedures
    
    
    26PART IIItem 1. Legal Proceedings
    
    
    26Item 1.A. Risk Factors
    
    
    26Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    26Item 6. Exhibits
    
    
    27Loan AgreementLoan AgreementCertification of Chief Executive OfficerCertification of Chief Financial OfficerSection 1350 CertificationSection 1350 Certification
  2




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PART I
 
 Item 1. Financial Statements
 FINANCIAL INFORMATION
 SUMMIT HOTEL PROPERTIES, LLC
 
 CONDENSED CONSOLIDATED BALANCE SHEETS
 SEPTEMBER 30, 2006 AND DECEMBER 31, 2005
 (Unaudited)
    
    
    (Audited)2006
    
    
    2005ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    21,093,118
    
    
    $
    7,339,976Restricted cash
    
    
    4,004,822
    
    
    
    2,288,962Trade receivables
    
    
    4,804,554
    
    
    
    3,406,756Prepaid expenses and other
    
    
    671,984
    
    
    
    1,172,480Assets held for sale
    
    
    3,110,559
    
    
    
    5,151,442Total current assets
    
    
    33,685,037
    
    
    
    19,359,616PROPERTY AND EQUIPMENT, NET
    
    
    321,576,978
    
    
    
    288,485,564OTHER ASSETSDeferred charges and other assets, net
    
    
    4,586,327
    
    
    
    4,582,014Restricted cash
    
    
    801,235
    
    
    
    4,850,879Total other assets
    
    
    5,387,562
    
    
    
    9,432,893TOTAL ASSETS
    
    $
    360,649,577
    
    
    $
    317,278,073LIABILITIES AND MEMBERS EQUITYCURRENT LIABILITIESCurrent portion of long-term debt
    
    $
    5,222,000
    
    
    $
    4,222,000Lines of credit and notes payable
    
    
    8,142,115
    
    
    
    11,271,788Accounts payable
    
    
    1,201,616
    
    
    
    997,467Related party accounts payable
    
    
    1,007,595
    
    
    
    2,264,440Accrued expenses
    
    
    8,198,792
    
    
    
    7,585,654Total current liabilities
    
    
    23,772,118
    
    
    
    26,341,349LONG-TERM DEBT, NET OF CURRENT PORTION
    
    
    218,204,322
    
    
    
    180,668,493COMMITMENTS AND CONTINGENCIESMINORITY INTERESTS
    
    
    (1,394,290
    )
    
    
    (1,203,398
    )MEMBERS EQUITY
    
    
    120,067,427
    
    
    
    111,471,629TOTAL LIABILITIES AND MEMBERS EQUITY
    
    $
    360,649,577
    
    
    $
    317,278,073
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SUMMIT HOTEL PROPERTIES, LLC
 
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
 FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
 Three Months Ended
    
    
    Nine Months EndedSeptember 30, 2006
    
    
    September 30, 2005
    
    
    September 30, 2006
    
    
    September 30, 2005REVENUESRoom revenues
    
    $
    32,443,818
    
    
    $
    25,439,029
    
    
    $
    91,305,143
    
    
    $
    64,306,269Other hotel operations revenues
    
    
    510,362
    
    
    
    426,929
    
    
    
    1,503,726
    
    
    
    1,126,53932,954,180
    
    
    
    25,865,958
    
    
    
    92,808,869
    
    
    
    65,432,808COSTS AND EXPENSESDirect hotel operations
    
    
    9,915,866
    
    
    
    7,688,786
    
    
    
    28,527,866
    
    
    
    19,127,872Other hotel operating expenses
    
    
    3,486,421
    
    
    
    2,824,435
    
    
    
    9,987,362
    
    
    
    7,387,102General, selling and administrative
    
    
    5,686,597
    
    
    
    4,069,500
    
    
    
    16,159,892
    
    
    
    10,856,701Repairs and maintenance
    
    
    2,072,626
    
    
    
    1,254,467
    
    
    
    7,081,269
    
    
    
    3,126,948Depreciation and amortization
    
    
    4,077,661
    
    
    
    3,192,500
    
    
    
    12,243,129
    
    
    
    8,406,16825,239,171
    
    
    
    19,029,688
    
    
    
    73,999,518
    
    
    
    48,904,791INCOME FROM OPERATIONS
    
    
    7,715,009
    
    
    
    6,836,270
    
    
    
    18,809,351
    
    
    
    16,528,017OTHER INCOME (EXPENSE)Interest income
    
    
    307,877
    
    
    
    114,154
    
    
    
    516,005
    
    
    
    212,131Interest (expense)
    
    
    (3,505,621
    )
    
    
    (2,686,245
    )
    
    
    (9,946,107
    )
    
    
    (6,931,148
    )State income tax refund (expense)
    
    
    (227,714
    )
    
    
    270
    
    
    
    (623,553
    )
    
    
    (6,920
    )(Loss) on disposal of assets
    
    
    (677,654
    )
    
    
    (36,814
    )
    
    
    (856,358
    )
    
    
    (150,540
    )(4,103,112
    )
    
    
    (2,608,635
    )
    
    
    (10,910,013
    )
    
    
    (6,876,477
    )INCOME BEFORE
MINORITY INTERESTS
    
    
    3,611,897
    
    
    
    4,227,635
    
    
    
    7,899,338
    
    
    
    9,651,540MINORITY INTERESTS IN
OPERATIONS OF CONSOLIDATED
PARTNERSHIP
    
    
    (135,920
    )
    
    
    (134,646
    )
    
    
    319,108
    
    
    
    152,193INCOME FROM CONTINUING
OPERATIONS
    
    
    3,747,817
    
    
    
    4,362,281
    
    
    
    7,580,230
    
    
    
    9,499,347INCOME FROM
DISCONTINUED OPERATIONS
    
    
    168,187
    
    
    
    866,477
    
    
    
    2,541,190
    
    
    
    910,941NET INCOME
    
    $
    3,916,004
    
    
    $
    5,228,758
    
    
    $
    10,121,420
    
    
    $
    10,410,288BASIC AND DILUTED EARNINGS PER
CAPITAL UNIT
    
    $
    2,518.61
    
    
    $
    3,864.59
    
    
    $
    6,572.82
    
    
    $
    8,355.17WEIGHTED AVERAGE NUMBER OF
UNITS OUTSTANDING FOR
CALCULATION OF BASIC AND
DILUTED EARNINGS PER
CAPITAL UNIT
    
    
    1,554.83
    
    
    
    1,352.99
    
    
    
    1,539.89
    
    
    
    1,245.97
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SUMMIT HOTEL PROPERTIES, LLC
 
 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS EQUITY (UNAUDITED)
 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006
 # of CapitalUnits
    
    Class A
    
    Class A-1
    
    Class B
    
    Class C
    
    TotalBALANCES, JANUARY 1, 2006
    
    
    1,421.58
    
    
    $
    95,596,821
    
    
    $
    
    
    
    $
    6,133,132
    
    
    $
    9,741,676
    
    
    $
    111,471,629Proceeds from Class A-1 units
issued in private placement
    
    
    133.25
    
    
    
    
    
    
    
    12,457,500
    
    
    
    
    
    
    
    
    
    
    
    12,457,500Net Income
    
    
    
    
    
    
    10,121,420
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10,121,420Distributions to members
    
    
    
    
    
    
    (10,268,383
    )
    
    
    (878,936
    )
    
    
    (482,688
    )
    
    
    (2,353,115
    )
    
    
    (13,983,122
    )BALANCES, SEPTEMBER 30, 2006
    
    
    1,554.83
    
    
    $
    95,449,858
    
    
    $
    11,578,564
    
    
    $
    5,650,444
    
    
    $
    7,388,561
    
    
    $
    120,067,427
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SUMMIT HOTEL PROPERTIES, LLC
 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
 2006
    
    
    2005OPERATING ACTIVITIESNet income
    
    $
    10,121,420
    
    
    $
    10,410,288Adjustments to reconcile net income to
net cash from operating activities:Depreciation
    
    
    11,771,203
    
    
    
    8,899,487Amortization
    
    
    784,655
    
    
    
    166,207Minority interests in operations of consolidated partnership
    
    
    319,108
    
    
    
    152,193(Gain) on disposal of assets
    
    
    (1,264,881
    )
    
    
    Changes in current assets and liabilities:Trade receivables
    
    
    (1,397,798
    )
    
    
    (2,773,543
    )Prepaid expenses and other
    
    
    500,496
    
    
    
    97,673Accounts payable
    
    
    (1,052,696
    )
    
    
    397,067Accrued expenses
    
    
    613,138
    
    
    
    1,975,150NET CASH FROM OPERATING ACTIVITIES
    
    
    20,394,645
    
    
    
    19,324,522INVESTING ACTIVITIESPurchases of hotel properties and other property & equipment
    
    
    (52,757,870
    )
    
    
    (73,575,531
    )Proceeds from asset dispositions
    
    
    11,094,969
    
    
    
    Restricted cash withdrawals (fundings)
    
    
    2,333,784
    
    
    
    (1,651,176
    )NET CASH (USED FOR) INVESTING ACTIVITIES
    
    
    (39,329,117
    )
    
    
    (75,226,707
    )FINANCING ACTIVITIESProceeds from issuance of long-term debt
    
    
    55,960,800
    
    
    
    58,544,583Principal payments on long-term debt
    
    
    (17,424,972
    )
    
    
    (10,974,759
    )Financing fees on long-term debt
    
    
    (682,919
    )
    
    
    (516,247
    )Net change in notes payable
    
    
    (3,129,673
    )
    
    
    (531,600
    )Proceeds from equity contributions
    
    
    12,457,500
    
    
    
    22,178,510Distributions to members
    
    
    (13,983,122
    )
    
    
    (11,579,778
    )Distributions to minority interests
    
    
    (510,000
    )
    
    
    (255,000
    )NET CASH FROM FINANCING ACTIVITIES
    
    
    32,687,614
    
    
    
    56,865,709NET CHANGE IN CASH AND CASH EQUIVALENTS
    
    
    13,753,142
    
    
    
    963,524CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD
    
    
    7,339,976
    
    
    
    13,763,531CASH AND CASH EQUIVALENTS AT END OF PERIOD
    
    $
    21,093,118
    
    
    $
    14,727,055SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:Cash payments for interest
    
    $
    9,993,417
    
    
    $
    2,523,915Cash payments for state income taxes
    
    $
    1,305,895
    
    
    $
    
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SUMMIT HOTEL PROPERTIES, LLC
 
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 SEPTEMBER 30, 2006
 NOTE 1  SELECTED SUPPLEMENTARY INFORMATION
 Basis of Presentation
   Use of Estimates
  Assets Held for Sale
    2006
    
    
    2005Land
    
    $
    1,048,864
    
    
    $
    947,935Building
    
    
    2,048,055
    
    
    
    4,208,474Furniture, fixtures and equipment
    
    
    322,834
    
    
    
    384,5053,419,753
    
    
    
    5,540,914Less accumulated depreciation
    
    
    309,194
    
    
    
    389,472$
    3,110,559
    
    
    $
    5,151,442
  7




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SUMMIT HOTEL PROPERTIES, LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 2006
 Discontinued Operations
   Three Months Ended
    
    
    Nine Months EndedSeptember 30, 2006
    
    
    September 30, 2005
    
    
    September 30, 2006
    
    
    September 30, 2005REVENUES
    
    $
    570,306
    
    
    $
    2,398,928
    
    
    $
    2,623,685
    
    
    $
    5,191,473COSTS AND EXPENSESDirect hotel operations
    
    
    150,700
    
    
    
    643,682
    
    
    
    836,730
    
    
    
    1,624,706Other hotel operating expenses
    
    
    43,709
    
    
    
    226,044
    
    
    
    354,076
    
    
    
    695,297General, selling and administrative
    
    
    123,477
    
    
    
    319,935
    
    
    
    472,112
    
    
    
    807,599Repairs and maintenance
    
    
    9,808
    
    
    
    66,373
    
    
    
    127,299
    
    
    
    355,006Depreciation and amortization
    
    
    33,744
    
    
    
    219,841
    
    
    
    312,729
    
    
    
    659,523361,438
    
    
    
    1,475,875
    
    
    
    2,102,946
    
    
    
    4,142,131INCOME FROM OPERATIONS
    
    
    208,868
    
    
    
    923,053
    
    
    
    520,739
    
    
    
    1,049,342OTHER INCOME (EXPENSE)Interest income
    
    
    5,751
    
    
    
    9,821
    
    
    
    23,864
    
    
    
    40,177Interest (expense)
    
    
    (40,158
    )
    
    
    (53,562
    )
    
    
    (47,310
    )
    
    
    (148,370
    )State income tax (expense)
    
    
    (77,342
    )
    
    
    (270
    )
    
    
    (77,342
    )
    
    
    (13,275
    )Gain (loss) on disposal of assets
    
    
    71,068
    
    
    
    (12,565
    )
    
    
    2,121,239
    
    
    
    (16,933
    )(40,681
    )
    
    
    (56,576
    )
    
    
    2,020,451
    
    
    
    (138,401
    )INCOME FROM
DISCONTINUED OPERATIONS
    
    $
    168,187
    
    
    $
    866,477
    
    
    $
    2,541,190
    
    
    $
    910,941
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SUMMIT HOTEL PROPERTIES, LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 2006
 Acquisitions
 Business Combinations
    2/1/06
    
    
    4/12/06Current assets
    
    $
    
    
    
    $
    Property and equipment
    
    
    15,000,000
    
    
    
    11,577,000Intangible assets
    
    
    
    
    
    
    Total assets acquired
    
    
    15,000,000
    
    
    
    11,577,000Current liabilities
    
    
    
    
    
    
    Long-term debt
    
    
    
    
    
    
    Total liabilities assumed
    
    
    
    
    
    
    Net assets acquired
    
    $
    15,000,000
    
    
    $
    11,577,000
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SUMMIT HOTEL PROPERTIES, LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 2006
     Accrued Expenses
 2006
    
    
    2005Accrued taxes
    
    $
    4,809,225
    
    
    $
    4,309,392Accrued salaries and benefits
    
    
    1,129,333
    
    
    
    1,523,194Accrued interest
    
    
    895,523
    
    
    
    536,336Other accrued expenses
    
    
    1,364,711
    
    
    
    1,216,732$
    8,198,792
    
    
    $
    7,585,654
 Note Obligations
   Members Equity
   10




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SUMMIT HOTEL PROPERTIES, LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 2006
 Subsequent Events
    Recent Accounting Pronouncements
 Fair Value
Measurements
 11




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
 Forward-Looking Statements
  Overview
   12




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Critical Accounting Policies
 Property and Equipment
  Impairment of Long-Lived Assets
    Consolidation Policy
  13




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Revenue Recognition
  Results of Operations
     14




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Three Months Ended September 30, 2006 Compared with Three Months Ended September 30, 2005
 Continuing Operations
  Revenues
   Three Months Ended
    
    Three Months EndedSeptember 30,
    
    September 30,2006
    
    2005
    
    Increase/(Decrease)All Company HotelsRevPAR
    
    $
    66.46
    
    
    $
    59.71
    
    
    $
    6.75Average Daily Rate
    
    $
    88.79
    
    
    $
    82.63
    
    
    $
    6.16Occupancy Rate
    
    
    74.85
    %
    
    
    72.26
    %
    
    
    2.59
    %
  15




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Hotel Operating Expenses
  Depreciation
  Management Expense
  16




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Repairs and Maintenance
  Net Income
  Nine Months Ended September 30, 2006 Compared with Nine Months Ended September 30, 2005
 Continuing Operations
 Revenues
  17




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Nine Months Ended
    
    Nine Months EndedSeptember 30,
    
    September 30,2006
    
    2005
    
    IncreaseAll Company HotelsRevPAR
    
    $
    63.29
    
    
    $
    55.68
    
    
    $
    7.61Average Daily Rate
    
    $
    88.30
    
    
    $
    79.22
    
    
    $
    9.08Occupancy Rate
    
    
    71.68
    %
    
    
    70.28
    %
    
    
    1.4
    %
   Hotel Operating Expenses
  Depreciation
  18




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Management Expense
  Repairs and Maintenance
  Net Income
  Seasonality and Diversification
  19




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Liquidity and Capital Resources
 Cash From Operating Activities
   Cash From Investing Activities
    Cash From Financing Activities
   20




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1 4
      21




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Uses of Cash
   Additional Information Concerning Sources and Uses of Cash
    22




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Recent Developments
 Recent Loan Transactions
    23




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Acquisitions and Dispositions
  Location
    
    # Rooms
    
    Franchise
    
    Property Purchased
    
    Status
    
    Closing Date (1)Ft. Wayne, IN
    
    
    119
    
    
    Hampton Inn
    
    Hotel
    
    Purchased
    
    2/1/06Ft. Wayne, IN
    
    
    109
    
    
    Residence Inn
    
    Hotel
    
    Purchased
    
    2/1/06East Point, GA
    
    
    152
    
    
    AmeriSuites(2)
    
    Hotel
    
    Purchased
    
    4/12/06Jackson, MS (3)
    
    
    104
    
    
    Residence Inn
    
    Land
    
    Under Construction
    
    1/26/06Ft. Collins, CO (3)
    
    
    120
    
    
    Hilton Garden Inn
    
    Land
    
    Under Construction
    
    3/31/06Flagstaff, AZ (3)
    
    
    155
    
    
    Courtyard by Marriott
    
    Land
    
    Purchased
    
    4/5/06Ft. Worth, TX (3)
    
    
    93
    
    
    Hampton Inn & Suites
    
    Land
    
    Under Construction
    
    5/10/06Denver, CO (3)
    
    
    123
    
    
    SpringHill Suites
    
    Land
    
    Purchased
    
    7/19/06Bloomington, MN (3)
    
    
    113
    
    
    Cambria Suites
    
    Land
    
    Under Construction
    
    4/21/06Bloomington, MN (3)
    
    
    150
    
    
    Hampton Inn & Suites
    
    Land
    
    Under Construction
    
    4/21/06Boise, ID (4)
    
    
    119
    
    
    Cambria Suites
    
    Land
    
    Under ConstructionBradford, PA
    
    
    48
    
    
    Comfort Inn
    
    Hotel
    
    Sold
    
    4/7/06Sioux Falls, SD
    
    
    77
    
    
    Baymont Inn
    
    Hotel
    
    Sold
    
    5/4/06Jackson, MS
    
    
    94
    
    
    TownePlace Suites
    
    Hotel
    
    Sold
    
    6/29/06Baton Rogue, LA (3)
    
    
    127
    
    
    Cambria Suites
    
    Land
    
    Purchased
    
    7/11/06Coeur dAlene, ID
    
    
    69
    
    
    Fairfield Inn
    
    Hotel
    
    Under Contract to Sell
    
    1/15/07San Antonio, TX(3)
    
    
    120
    
    
    Cambria Suites
    
    Land
    
    Under Contract
    
    12/29/06San Antonio, TX(3)
    
    
    120
    
    
    TBA
    
    Land
    
    Under Contract
    
    12/29/06Jacksonville, FL(3)
    
    
    136
    
    
    Aloft
    
    Land
    
    Under Contract
    
    11/29/06Jacksonville, FL(3)
    
    
    130
    
    
    TBA
    
    Land
    
    Under Contract
    
    11/29/06
 
 (1)
    
    For properties under contract, the closing date is estimated.(2)
    
    We intend to convert the AmeriSuites to a Hyatt Place during 2006.(3)
    
    Number of units and franchise indicate our plans as of September 30, 2006, which are
subject to change.(4)
    
    Land owned by Company prior to December 31, 2005.  24




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##### Table of Contents



Commitments and Contingencies
    Off-Balance Sheet Arrangements
  
 Item 3. Quantitative and Qualitative Disclosures About Market Risk
   
 25




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##### Table of Contents



Item 4. Controls and Procedures
  
 PART II
 OTHER INFORMATION
 
 Item 1. Legal Proceedings
  
 Item 1.A. Risk Factors
  
 Item 2. Unregistered Sales Of Equity Securities And Use Of Proceeds
 October 2005 Offering
  26




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##### Table of Contents



Item 6. Exhibits
  ExhibitNumber
    
    Description of Exhibit10.1
    
    Loan Agreement between Summit Hotel Properties, LLC and M&I Marshall & Ilsley Bank for
loan in the amount of $14,080,000.00, dated July 25, 2006.10.2
    
    Loan Agreement between Summit Hotel Properties, LLC and M&I Marshall & Ilsley Bank for
loan in the amount of $10,400,000.00, dated July 25, 2006.31.1
    
    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.
 27




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##### Table of Contents



SIGNATURES
  SUMMIT HOTEL PROPERTIES, LLCDate: November 14, 2006
    By:
    /s/ Kerry W. BoekelheideKerry W. BoekelheideChief Executive Officer and ManagerDate: November 14, 2006
    By:
    /s/ Christopher D. BillsChristopher D. BillsChief Financial Officer and Manager 28




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##### Table of Contents



EXHIBIT INDEX
 10.1
    
    Loan Agreement between Summit Hotel Properties, LLC and M&I Marshall & Ilsley Bank for
loan in the amount of $14,080,000.00, dated July 25, 2006.10.2
    
    Loan Agreement between Summit Hotel Properties, LLC and M&I Marshall & Ilsley Bank for
loan in the amount of $10,400,000.00, dated July 25, 2006.31.1
    
    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.
 29