##### 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, 2008
 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
  Large accelerated filer
o
    
    Accelerated filer o
    
    Non-accelerated filer  
þ
(Do not check if a smaller reporting company)
    
    Smaller Reporting Company o
 o þ




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##### 



TABLE OF CONTENTS
 PagePART I
    
    3Item 1. Financial Statements
    
    3Condensed Consolidated Balance Sheets as of June 30, 2008 (Unaudited) and December 31,
2007
    

    3Condensed Consolidated Statements of Operations for the three and six months ended
June 30, 2008 and 2007 (Unaudited)
    

    4Condensed Consolidated Statement of Changes in Members Equity for the six months
ended June 30, 2008 (Unaudited)
    

    5Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2008
and 2007 (Unaudited)
    

    6Notes to Condensed Consolidated Financial Statements (Unaudited)
    

    8Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    

    13Item 3. Quantitative and Qualitative Disclosures about Market Risk
    

    26Item 4. Controls and Procedures
    

    27PART II
    
    27Item 1. Legal Proceedings
    
    27Item 1A. Risk Factors
    

    28Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    

    28Item 3. Defaults Upon Senior Securities
    

    28Item 4. Submission of Matters to a Vote of Security Holders
    

    28Item 5. Other Information
    

    28Item 6. Exhibits
    

    28Certification of Chief Executive OfficerCertification of Chief Financial OfficerSection 1350 Certification of Chief Executive OfficerSection 1350 Certification of Chief Financial Officer
  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, 2008 AND DECEMBER 31, 2007
 2008
    
    
    2007ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    11,140,397
    
    
    $
    7,776,395Restricted cash
    
    
    2,241,581
    
    
    
    2,462,947Trade receivables
    
    
    5,040,930
    
    
    
    3,192,708Prepaid expenses and other
    
    
    951,685
    
    
    
    1,863,846Assets held for sale
    
    
    15,824,011
    
    
    
    Total current assets
    
    
    35,198,604
    
    
    
    15,295,896PROPERTY AND EQUIPMENT, NET
    
    
    421,143,024
    
    
    
    426,494,205OTHER ASSETSDeferred charges and other assets, net
    
    
    4,147,358
    
    
    
    4,998,923Restricted cash
    
    
    1,772,963
    
    
    
    1,201,183Total other assets
    
    
    5,920,321
    
    
    
    6,200,106TOTAL ASSETS
    
    $
    462,261,949
    
    
    $
    447,990,207LIABILITIES AND MEMBERS EQUITYCURRENT LIABILITIESCurrent portion of long-term debt
    
    $
    52,273,000
    
    
    $
    40,837,000Lines of credit
    
    
    9,200,000
    
    
    
    21,575,864Notes payable
    
    
    12,807,296
    
    
    
    12,700,557Accounts payable
    
    
    2,641,795
    
    
    
    4,862,128Related party accounts payable
    
    
    4,834,629
    
    
    
    1,137,985Accrued expenses
    
    
    10,286,559
    
    
    
    9,639,577Total current liabilities
    
    
    92,043,279
    
    
    
    90,753,111LONG-TERM DEBT, NET OF CURRENT PORTION
    
    
    278,207,562
    
    
    
    261,544,939COMMITMENTS AND CONTINGENCIESMINORITY INTERESTS
    
    
    (1,691,645
    )
    
    
    (1,702,732
    )MEMBERS EQUITYClass A, 1,166.62 units issued and outstanding
    
    
    81,171,806
    
    
    
    82,892,941Class A-1, 133.25 units issued and outstanding
    
    
    10,045,980
    
    
    
    10,672,761Class B, 81.36 units issued and outstanding
    
    
    3,877,947
    
    
    
    4,108,213Class C, 173.60 units issued and outstanding
    
    
    (1,392,980
    )
    
    
    (279,026
    )Total members equity
    
    
    93,702,753
    
    
    
    97,394,889TOTAL LIABILITIES AND MEMBERS EQUITY
    
    $
    462,261,949
    
    
    $
    447,990,207
  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, 2008 AND 2007
 Three Months Ended
    
    
    Six Months EndedJune 30, 2008
    
    
    June 30, 2007
    
    
    June 30, 2008
    
    
    June 30, 2007REVENUESRoom revenues
    
    $
    35,635,105
    
    
    $
    29,224,449
    
    
    $
    67,891,129
    
    
    $
    55,026,460Other hotel operations revenues
    
    
    584,604
    
    
    
    528,033
    
    
    
    1,149,612
    
    
    
    1,047,27536,219,709
    
    
    
    29,752,482
    
    
    
    69,040,741
    
    
    
    56,073,735COSTS AND EXPENSESDirect hotel operations
    
    
    10,770,440
    
    
    
    8,812,959
    
    
    
    20,754,110
    
    
    
    16,597,326Other hotel operating expenses
    
    
    3,715,126
    
    
    
    2,872,421
    
    
    
    7,389,280
    
    
    
    5,557,346General, selling and administrative
    
    
    6,493,146
    
    
    
    6,387,851
    
    
    
    12,347,856
    
    
    
    10,882,752Repairs and maintenance
    
    
    2,460,373
    
    
    
    3,559,003
    
    
    
    5,181,319
    
    
    
    6,005,932Depreciation and amortization
    
    
    5,640,548
    
    
    
    3,825,496
    
    
    
    11,261,070
    
    
    
    7,258,58529,079,633
    
    
    
    25,457,730
    
    
    
    56,933,635
    
    
    
    46,301,941INCOME FROM OPERATIONS
    
    
    7,140,076
    
    
    
    4,294,752
    
    
    
    12,107,106
    
    
    
    9,771,794OTHER INCOME (EXPENSE)Interest income
    
    
    44,674
    
    
    
    119,038
    
    
    
    93,374
    
    
    
    207,825Interest (expense)
    
    
    (4,290,631
    )
    
    
    (3,339,682
    )
    
    
    (8,838,646
    )
    
    
    (6,241,555
    )Gain (loss) on disposal of assets
    
    
    
    
    
    
    (85,924
    )
    
    
    (3,964
    )
    
    
    (132,034
    )(4,245,957
    )
    
    
    (3,306,568
    )
    
    
    (8,749,236
    )
    
    
    (6,165,764
    )INCOME BEFORE
MINORITY INTERESTS
    
    
    2,894,119
    
    
    
    988,184
    
    
    
    3,357,870
    
    
    
    3,606,030MINORITY INTERESTS IN
OPERATIONS OF CONSOLIDATED
PARTNERSHIPS
    
    
    72,655
    
    
    
    219,351
    
    
    
    317,087
    
    
    
    552,582INCOME FROM CONTINUING
OPERATIONS
    
    
    2,821,464
    
    
    
    768,833
    
    
    
    3,040,783
    
    
    
    3,053,448INCOME (LOSS) FROM
DISCONTINUED OPERATIONS
    
    
    1,544,929
    
    
    
    3,447,859
    
    
    
    1,830,084
    
    
    
    3,460,704NET INCOME BEFORE INCOME TAXES
    
    
    4,366,393
    
    
    
    4,216,692
    
    
    
    4,870,867
    
    
    
    6,514,152STATE INCOME TAX (EXPENSE)
    
    
    (309,000
    )
    
    
    (410,204
    )
    
    
    (309,000
    )
    
    
    (482,630
    )NET INCOME
    
    $
    4,057,393
    
    
    $
    3,806,488
    
    
    $
    4,561,867
    
    
    $
    6,031,522BASIC AND DILUTED EARNINGS
PER CAPITAL UNIT
    
    $
    2,609.54
    
    
    $
    2,448.17
    
    
    $
    2,934.00
    
    
    $
    3,879.22WEIGHTED AVERAGE NUMBER OF
UNITS OUTSTANDING FOR
CALCULATION OF BASIC AND
DILUTED EARNINGS PER
CAPITAL UNIT
    
    
    1,554.83
    
    
    
    1,554.83
    
    
    
    1,554.83
    
    
    
    1,554.83
  4




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SUMMIT HOTEL PROPERTIES, LLC
 
 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS EQUITY (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2008
 # of CapitalUnits
    
    
    Class A
    
    
    Class A-1
    
    
    Class B
    
    
    Class C
    
    
    TotalBALANCES, JANUARY 1, 2008
    
    
    1,554.83
    
    
    $
    82,892,941
    
    
    $
    10,672,761
    
    
    $
    4,108,213
    
    
    $
    (279,026
    )
    
    $
    97,394,889Net Income
    
    
    
    
    
    
    4,561,867
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,561,867Distributions to members
    
    
    
    
    
    
    (6,283,002
    )
    
    
    (626,781
    )
    
    
    (230,266
    )
    
    
    (1,113,954
    )
    
    
    (8,254,003
    )BALANCES, JUNE 30, 2008
    
    
    1,554.83
    
    
    $
    81,171,806
    
    
    $
    10,045,980
    
    
    $
    3,877,947
    
    
    $
    (1,392,980
    )
    
    $
    93,702,753
  5




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SUMMIT HOTEL PROPERTIES, LLC
 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007
 2008
    
    
    2007OPERATING ACTIVITIESNet income
    
    $
    4,561,867
    
    
    $
    6,031,522Adjustments to reconcile net income to
net cash from operating activities:Depreciation and amortization
    
    
    11,769,572
    
    
    
    8,656,435Minority interests in operations of consolidated
partnership
    
    
    317,087
    
    
    
    552,582(Gain) loss on disposal of assets
    
    
    (1,032,394
    )
    
    
    (3,037,474
    )Changes in current assets and liabilities:Trade receivables
    
    
    (1,848,222
    )
    
    
    (2,067,659
    )Prepaid expenses and other
    
    
    912,161
    
    
    
    754,105Accounts payable and related party accounts payable
    
    
    (2,931,278
    )
    
    
    2,833,798Accrued expenses
    
    
    646,982
    
    
    
    417,925NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
    
    
    12,395,775
    
    
    
    14,141,234INVESTING ACTIVITIESLand and hotel acquisitions and construction in progress
    
    
    
    
    
    
    (693,148
    )Purchases of other property & equipment
    
    
    (5,365,986
    )
    
    
    (6,819,766
    )Proceeds from asset dispositions, net of closing costs
    
    
    4,009,927
    
    
    
    9,373,053Restricted cash released (funded)
    
    
    (350,414
    )
    
    
    818,768NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES
    
    
    (1,706,473
    )
    
    
    2,678,907FINANCING ACTIVITIESProceeds from issuance of long-term debt
    
    
    3,737,000
    
    
    
    1,913,669Principal payments on long-term debt
    
    
    (8,333,759
    )
    
    
    (8,167,825
    )Financing fees on long-term debt
    
    
    (251,892
    )
    
    
    (411,990
    )Net change in notes payable and line of credit
    
    
    6,083,354
    
    
    
    (59,859
    )Distributions to members
    
    
    (8,254,003
    )
    
    
    (7,450,003
    )Distributions to minority interest
    
    
    (306,000
    )
    
    
    (510,000
    )NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES
    
    
    (7,325,300
    )
    
    
    (14,686,008
    )NET CHANGE IN CASH AND CASH EQUIVALENTS
    
    
    3,364,002
    
    
    
    2,134,133CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD
    
    
    7,776,395
    
    
    
    7,999,443END OF PERIOD
    
    $
    11,140,397
    
    
    $
    10,133,576SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:Cash payments for interest
    
    $
    9,227,827
    
    
    $
    7,337,870Cash payments for state income taxes
    
    $
    641,295
    
    
    $
    262,210
  6




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SUMMIT HOTEL PROPERTIES, LLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007
 2008
    
    
    2007SUPPLEMENTAL DISCLOSURE OF
NON-CASH FINANCIAL INFORMATION:Acquisitions of hotel properties and land through
issuance
of debt
    
    $
    1,222,116
    
    
    $
    36,117,606Construction in progress financed through related party
accounts payable
    
    $
    4,407,589
    
    
    $
    1,474,856Construction in progress financed through issuance
of debt
    
    $
    13,120,787
    
    
    $
    40,765,333Issuance of long-term debt to refinance existing
long-term debt
    
    $
    9,925,237
    
    
    $
    3,286,331Conversion of notes payable to long-term debt
    
    $
    3,430,864
    
    
    $
    
  7




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SUMMIT HOTEL PROPERTIES, LLC
 
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 JUNE 30, 2008
 NOTE 1  SELECTED SUPPLEMENTARY INFORMATION
 Basis of Presentation
   Use of Estimates
  Recent Accounting Pronouncements
 Fair Value
Measurement
 8




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SUMMIT HOTEL PROPERTIES, LLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007
 Assets Held for Sale
    2008
    
    
    2007Land
    
    $
    2,304,458
    
    
    $
    Building
    
    
    14,808,185
    
    
    
    Furniture, fixtures and equipment
    
    
    1,722,561
    
    
    
    18,835,204
    
    
    
    Less accumulated depreciation
    
    
    3,011,193
    
    
    
    $
    15,824,011
    
    
    $
    
 Discontinued Operations
   9




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SUMMIT HOTEL PROPERTIES, LLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007
 Three Months Ended
    
    
    Six Months EndedJune 30, 2008
    
    
    June 30, 2007
    
    
    June 30, 2008
    
    
    June 30, 2007REVENUES
    
    $
    2,276,452
    
    
    $
    5,251,809
    
    
    $
    4,340,739
    
    
    $
    10,150,806COSTS AND EXPENSESDirect hotel operations
    
    
    667,299
    
    
    
    1,792,661
    
    
    
    1,324,682
    
    
    
    3,575,839Other hotel operating expenses
    
    
    231,369
    
    
    
    655,869
    
    
    
    467,459
    
    
    
    1,335,364General, selling and administrative
    
    
    365,397
    
    
    
    952,670
    
    
    
    720,160
    
    
    
    1,846,018Repairs and maintenance
    
    
    57,270
    
    
    
    285,587
    
    
    
    116,855
    
    
    
    587,673Depreciation and amortization
    
    
    254,252
    
    
    
    744,233
    
    
    
    508,502
    
    
    
    1,397,8501,575,587
    
    
    
    4,431,020
    
    
    
    3,137,658
    
    
    
    8,742,744INCOME FROM OPERATIONS
    
    
    700,865
    
    
    
    820,789
    
    
    
    1,203,081
    
    
    
    1,408,062OTHER INCOME (EXPENSE)Interest income
    
    
    6,555
    
    
    
    (14,451
    )
    
    
    9,826
    
    
    
    (20,551
    )Interest (expense)
    
    
    (198,849
    )
    
    
    (527,987
    )
    
    
    (419,181
    )
    
    
    (1,096,315
    )Gain (loss) on disposal of assets
    
    
    1,036,358
    
    
    
    3,169,508
    
    
    
    1,036,358
    
    
    
    3,169,508844,064
    
    
    
    2,627,070
    
    
    
    627,003
    
    
    
    2,052,642INCOME (LOSS) FROM
DISCONTINUED OPERATIONS
    
    $
    1,544,929
    
    
    $
    3,447,859
    
    
    $
    1,830,084
    
    
    $
    3,460,704
 Acquisitions
 Business Combinations
  10




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SUMMIT HOTEL PROPERTIES, LLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007
 Accrued Expenses
  2008
    
    
    2007Accrued taxes
    
    $
    5,153,936
    
    
    $
    5,071,618Accrued salaries and benefits
    
    
    1,150,641
    
    
    
    1,581,180Accrued interest
    
    
    1,162,219
    
    
    
    1,361,653Other accrued expenses
    
    
    2,819,763
    
    
    
    1,625,126$
    10,286,559
    
    
    $
    9,639,577
 Note Obligations
  Commitments and Contingencies
  Subsequent Events
        11




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SUMMIT HOTEL PROPERTIES, LLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007
  12




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
 Forward-Looking Statements
  Overview
   13




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Critical Accounting Policies
 Property and Equipment
  Capitalized Development and Interest Costs
  Impairment of Long-Lived Assets
    14




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Consolidation Policy
   Revenue Recognition
  Results of Operations
     15




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Three Months Ended June 30, 2008 Compared with Three Months Ended June 30, 2007
 Revenues
   Three Months Ended
    
    Three Months EndedJune 30,
    
    June 30,2008
    
    2007
    
    Increase/(Decrease)All Company HotelsRevPAR
    
    $
    71.27
    
    
    $
    67.48
    
    
    $
    3.79Average Daily Rate
    
    $
    100.45
    
    
    $
    95.24
    
    
    $
    5.21Occupancy Rate
    
    
    70.95
    %
    
    
    70.85
    %
    
    
    0.10
    %
  16




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Hotel Operating Expenses
  Depreciation
  Management Expense
  Repairs and Maintenance
  17




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Income From Continuing Operations
  Income From Discontinued Operations
  Six Months Ended June 30, 2008 Compared with Six Months Ended June 30, 2007
 Revenues
   Six Months Ended
    
    Six Months EndedJune 30,
    
    June 30,2008
    
    2007
    
    Increase/(Decrease)All Company HotelsRevPAR
    
    $
    67.78
    
    
    $
    65.32
    
    
    $
    2.46Average Daily Rate
    
    $
    101.50
    
    
    $
    96.02
    
    
    $
    5.48Occupancy Rate
    
    
    66.78
    %
    
    
    68.03
    %
    
    
    (1.25
    )%
  18




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Hotel Operating Expenses
  Depreciation
  Management Expense
  Repairs and Maintenance
  19




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Income From Continuing Operations
  Income From Discontinued Operations
  Seasonality and Diversification
  Liquidity and Capital Resources
 Cash From Operating Activities
   Cash From Investing Activities
   20




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Cash From Financing Activities
   1 2 3 4
  21




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22




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Uses of Cash
   Additional Information Concerning Sources and Uses of Cash
   23




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Acquisition
    
    OpeningLocation
    
    # Rooms
    
    Franchise
    
    Status
    
    Date
    
    Date (1)Baton Rouge, LA(2)
    
    
    127
    
    
    Cambria Suites
    
    Under Construction
    
    7/11/06
    
    09/08San Antonio, TX (2)
    
    
    126
    
    
    Cambria Suites
    
    Under Construction
    
    1/22/07
    
    01/09Houston, TX (2)
    
    
    118
    
    
    SpringHill Suites
    
    Under Construction
    
    2/15/07
    
    09/09Jacksonville, FL(2)
    
    
    136
    
    
    Aloft
    
    Under Construction
    
    11/29/06
    
    05/09Jacksonville, FL(2)
    
    
    119
    
    
    TBA
    
    Future Construction
    
    11/29/06
    
    TBDFlagstaff, AZ (2)
    
    
    150
    
    
    Courtyard by Marriott
    
    Future Construction
    
    4/5/06
    
    TBDPortland, OR (2)(3)
    
    
    124
    
    
    Residence Inn
    
    Future Construction
    
    6/13/07
    
    TBDPortland, OR (2)(3)
    
    
    136
    
    
    Hyatt Place
    
    Future Construction
    
    6/13/07
    
    TBDEl 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)
    
    
    150
    
    
    Hyatt Place
    
    Future Construction
    
    8/30/07
    
    TBDBoise, ID(2)
    
    
    120
    
    
    Holiday Inn Express &Suites
    
    Future Construction
    
    10/1/04
    
    TBDTwin Falls, ID(2)
    
    
    93
    
    
    Holiday Inn Express & Suites
    
    Future Construction
    
    2/1/08
    
    TBDSan Antonio, TX
    
    TBD
    
    Aloft
    
    Future Construction
    
    1/22/07
    
    TBDSan Antonio, TX
    
    TBD
    
    TBD
    
    Future Construction
    
    1/22/07
    
    TBD
 24




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##### Table of Contents



(1)
    
    The opening date is estimated and is subject to change.(2)
    
    Number of units and franchise indicate our plans as of June 30, 2008, which are subject
to change.(3)
    
    Real estate is subject to a ground lease.   Recent Developments
 Acquisitions and Dispositions
  Location
    

#
Rooms(2)
    
    Franchise(2)
    
    Property Sold/Purchased
    
    Status
    
    Closing Date (1)Spokane, WA
    
    
    108
    
    
    Courtyard by Marriott
    
    Land
    
    Purchased
    
    7/31/2008Spokane, WA
    
    
    108
    
    
    SpringHill Suites
    
    Land
    
    Purchased
    
    7/31/2008Twin Falls, ID
    
    
    93
    
    
    Courtyard by Marriott
    
    Land
    
    Under Contract to Purchase
    
    11/01/2008Missoula, MT
    
    
    100
    
    
    Fairfield Inn & Suites
    
    Land
    
    Purchased
    
    7/17/2008Cottonwood 
   Heights, UT
    
    
    140
    
    
    Courtyard by Marriott
    
    Land
    
    Under Contract to Purchase
    
    10/01/2008Cottonwood 
   Heights, UT
    
    
    125
    
    
    TBD
    
    Land
    
    Under Contract to Purchase
    
    10/01/2008Charlotte, NC
    
    
    120
    
    
    Courtyard by Marriott
    
    Land
    
    Under Contract to Purchase
    
    12/15/2008Charlotte, NC
    
    
    125
    
    
    Hyatt Place
    
    Land
    
    Under Contract to Purchase
    
    12/31/2008Kennewick, WA
    
    
    56
    
    
    Comfort Inn
    
    Hotel
    
    Sold
    
    7/31/2008Overland Park, KS
    
    
    92
    
    
    Homewood Suites
    
    Hotel
    
    Sold
    
    7/01/2008Lewiston, ID
    
    
    52
    
    
    Comfort Inn
    
    Hotel
    
    Sold
    
    7/31/2008Jackson, MS
    
    
    94
    
    
    TownePlace Suites
    
    Hotel
    
    Sold
    
    7/01/2008Kennewick, WA
    
    
    63
    
    
    Fairfield Inn
    
    Hotel
    
    Sold
    
    6/06/2008
 
 (1)
    
    For properties under contract, the closing date is estimated. 25




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##### Table of Contents



(2)
    
    Number of units and franchise indicate our plans as of June 30, 2008, which are subject
to change.   Loan Transactions
  Commitments and Contingencies
   Off-Balance Sheet Arrangements
  
 Item 3. Quantitative and Qualitative Disclosures About Market Risk
  26




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##### Table of Contents



Item 4. Controls and Procedures
   
 PART II
OTHER INFORMATION
 
 Item 1. Legal Proceedings
  27




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##### Table of Contents



Item 1A. Risk Factors
  
 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
  
 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.
 
 28




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##### Table of Contents



SIGNATURES
  SUMMIT HOTEL PROPERTIES, LLCDate: August 14, 2008
    By:
    /s/ Kerry W. BoekelheideKerry W. BoekelheideChief Executive Officer and ManagerDate: August 14, 2008
    By:
    /s/ Daniel P. HansenDaniel P. HansenChief Financial Officer and Manager 29




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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.
 30