##### 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, 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




---



##### 



TABLE OF CONTENTS
 PART IPageItem 1. Financial Statements
    
    
    1Condensed Consolidated Balance Sheets as of September 30, 2008 (Unaudited) and
December 31, 2007
    
    
   3Condensed Consolidated Statements of Operations for the three and nine months ended
September 30, 2008 and 2007 (Unaudited)
    
    
   4Condensed Consolidated Statement of Changes in Members Equity for the nine months
ended September 30, 2008 (Unaudited)
    
    
   5Condensed Consolidated Statements of Cash Flows for the nine months ended September
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
    
    
   27Item 4. Controls and Procedures
    
    
   28PART IIItem 1. Legal Proceedings
    
    
   28Item 1A. Risk Factors
    
    
   28Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
   29Item 3. Defaults Upon Senior Securities
    
    
   29Item 4. Submission of Matters to a Vote of Security Holders
    
    
   30Item 5. Other Information
    
    
   30Item 6. Exhibits
    
    
   30EX-10.1EX-31.1EX-31.2EX-32.1EX-32.2
  2




---



##### Table of Contents



SUMMIT HOTEL PROPERTIES, LLC
 
 CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) 
SEPTEMBER
30, 2008 AND DECEMBER 31, 2007
 2008
    
    
    2007ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    19,173,069
    
    
    $
    7,776,395Restricted cash
    
    
    2,745,312
    
    
    
    2,462,947Trade receivables
    
    
    4,333,349
    
    
    
    3,192,708Prepaid expenses and other
    
    
    959,143
    
    
    
    1,863,846Total current assets
    
    
    27,210,873
    
    
    
    15,295,896PROPERTY AND EQUIPMENT, NET
    
    
    437,658,826
    
    
    
    426,494,205OTHER ASSETSDeferred charges and other assets, net
    
    
    3,536,696
    
    
    
    4,998,923Restricted cash
    
    
    2,011,879
    
    
    
    1,201,183Total other assets
    
    
    5,548,575
    
    
    
    6,200,106TOTAL ASSETS
    
    $
    470,418,274
    
    
    $
    447,990,207LIABILITIES AND MEMBERS EQUITYCURRENT LIABILITIESCurrent portion of long-term debt
    
    $
    44,271,400
    
    
    $
    40,837,000Lines of credit
    
    
    3,983,660
    
    
    
    21,575,864Notes payable
    
    
    11,159,900
    
    
    
    12,700,557Accounts payable
    
    
    2,891,960
    
    
    
    4,862,128Related party accounts payable
    
    
    3,421,596
    
    
    
    1,137,985Accrued expenses
    
    
    10,986,913
    
    
    
    9,639,577Total current liabilities
    
    
    76,715,429
    
    
    
    90,753,111LONG-TERM DEBT, NET OF CURRENT PORTION
    
    
    297,925,510
    
    
    
    261,544,939COMMITMENTS AND CONTINGENCIESMINORITY INTERESTS
    
    
    (1,849,279
    )
    
    
    (1,702,732
    )MEMBERS EQUITYClass A, 1,166.62 units issued and outstanding
    
    
    84,081,395
    
    
    
    82,892,941Class A-1, 133.25 units issued and outstanding
    
    
    10,855,741
    
    
    
    10,672,761Class B, 81.36 units issued and outstanding
    
    
    3,910,482
    
    
    
    4,108,213Class C, 173.60 units issued and outstanding
    
    
    (1,221,004
    )
    
    
    (279,026
    )Total members equity
    
    
    97,626,614
    
    
    
    97,394,889TOTAL LIABILITIES AND MEMBERS EQUITY
    
    $
    470,418,274
    
    
    $
    447,990,207
  3




---



##### Table of Contents



SUMMIT HOTEL PROPERTIES, LLC
 
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)  FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
 Three Months Ended
    
    
    Nine Months EndedSeptember 30, 2008
    
    
    September 30, 2007
    
    
   September 30, 2008
    
    
    September 30, 2007REVENUESRoom revenues
    
    $
    38,094,583
    
    
    $
    30,956,853
    
    
    $
    105,985,712
    
    
    $
    85,983,313Other hotel operations revenues
    
    
    635,887
    
    
    
    409,922
    
    
    
    1,785,499
    
    
    
    1,457,19738,730,470
    
    
    
    31,366,775
    
    
    
    107,771,211
    
    
    
    87,440,510COSTS AND EXPENSESDirect hotel operations
    
    
    11,339,356
    
    
    
    9,190,123
    
    
    
    32,093,466
    
    
    
    25,787,449Other hotel operating expenses
    
    
    4,070,005
    
    
    
    3,258,612
    
    
    
    11,459,285
    
    
    
    8,815,958General, selling and administrative
    
    
    6,289,621
    
    
    
    5,098,266
    
    
    
    18,637,477
    
    
    
    15,981,018Repairs and maintenance
    
    
    1,353,630
    
    
    
    2,483,724
    
    
    
    6,534,949
    
    
    
    8,489,656Depreciation and amortization
    
    
    5,653,943
    
    
    
    4,181,614
    
    
    
    16,915,013
    
    
    
    11,440,19928,706,555
    
    
    
    24,212,339
    
    
    
    85,640,190
    
    
    
    70,514,280INCOME FROM OPERATIONS
    
    
    10,023,915
    
    
    
    7,154,436
    
    
    
    22,131,021
    
    
    
    16,926,230OTHER INCOME (EXPENSE)Interest income
    
    
    67,739
    
    
    
    140,860
    
    
    
    161,113
    
    
    
    348,685Interest (expense)
    
    
    (4,164,380
    )
    
    
    (3,749,630
    )
    
    
    (13,003,026
    )
    
    
    (9,991,185
    )Gain (loss) on disposal of assets
    
    
    (383,340
    )
    
    
    (390,774
    )
    
    
    (387,304
    )
    
    
    (522,808
    )(4,479,981
    )
    
    
    (3,999,544
    )
    
    
    (13,229,217
    )
    
    
    (10,165,308
    )INCOME BEFORE
MINORITY INTERESTS
    
    
    5,543,934
    
    
    
    3,154,892
    
    
    
    8,901,804
    
    
    
    6,760,922MINORITY INTERESTS IN
OPERATIONS OF CONSOLIDATED
PARTNERSHIPS
    
    
    (157,635
    )
    
    
    (107,439
    )
    
    
    159,453
    
    
    
    445,143INCOME FROM CONTINUING
OPERATIONS
    
    
    5,701,569
    
    
    
    3,262,331
    
    
    
    8,742,351
    
    
    
    6,315,779INCOME (LOSS) FROM
DISCONTINUED OPERATIONS
    
    
    7,842,415
    
    
    
    1,840,102
    
    
    
    9,672,499
    
    
    
    5,300,806NET INCOME BEFORE INCOME TAXES
    
    
    13,543,984
    
    
    
    5,102,433
    
    
    
    18,414,850
    
    
    
    11,616,585STATE INCOME TAX (EXPENSE)
    
    
    (895,700
    )
    
    
    (298,092
    )
    
    
    (1,204,700
    )
    
    
    (780,722
    )NET INCOME
    
    $
    12,648,284
    
    
    $
    4,804,341
    
    
    $
    17,210,150
    
    
    $
    10,835,863BASIC AND DILUTED EARNINGS
PER CAPITAL UNIT
    
    $
    8,134.83
    
    
    $
    3,089.95
    
    
    $
    11,068.83
    
    
    $
    6,969.16WEIGHTED 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




---



##### Table of Contents



SUMMIT HOTEL PROPERTIES, LLC
 
 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS EQUITY  (UNAUDITED)  FOR THE NINE MONTHS ENDED SEPTEMBER 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
    
    
    
    
    
    
    12,683,282
    
    
    
    1,264,826
    
    
    
    519,402
    
    
    
    2,742,640
    
    
    
    17,210,150Distributions to
members
    
    
    
    
    
    
    (11,494,828
    )
    
    
    (1,081,846
    )
    
    
    (717,133
    )
    
    
    (3,684,618
    )
    
    
    (16,978,425
    )BALANCES, SEPTEMBER
30, 2008
    
    
    1,554.83
    
    
    $
    84,081,395
    
    
    $
    10,855,741
    
    
    $
    3,910,482
    
    
    $
    (1,221,004
    )
    
    $
    97,626,614
  5




---



##### Table of Contents



SUMMIT HOTEL PROPERTIES, LLC
 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
 2008
    
    
    2007OPERATING ACTIVITIESNet income
    
    $
    17,210,150
    
    
    $
    10,835,863Adjustments to reconcile net income to
net cash from operating activities:Depreciation and amortization
    
    
    17,418,163
    
    
    
    13,409,323Minority
interests in operations of consolidated partnership
    
    
    159,453
    
    
    
    445,143(Gain) loss on disposal of assets
    
    
    (8,609,567
    )
    
    
    (3,903,242
    )Changes in current assets and liabilities:Trade receivables
    
    
    (1,140,641
    )
    
    
    (2,264,014
    )Prepaid expenses and other
    
    
    904,703
    
    
    
    827,666Accounts
payable and related party accounts payable
    
    
    (2,663,159
    )
    
    
    2,211,805Accrued expenses
    
    
    1,347,336
    
    
    
    1,463,506NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
    
    
    24,626,438
    
    
    
    23,026,050INVESTING ACTIVITIESLand and
hotel acquisitions and construction in progress
    
    
    (7,290,000
    )
    
    
    (1,034,092
    )Purchases of other property & equipment
    
    
    (6,207,620
    )
    
    
    (7,857,110
    )Proceeds from asset dispositions, net of closing costs
    
    
    27,775,000
    
    
    
    12,853,572Restricted cash released (funded)
    
    
    (1,093,061
    )
    
    
    102,414NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES
    
    
    13,184,319
    
    
    
    4,064,784FINANCING ACTIVITIESProceeds from issuance of long-term debt
    
    
    3,737,000
    
    
    
    5,213,669Principal payments on long-term debt
    
    
    (13,123,821
    )
    
    
    (9,507,686
    )Financing fees on long-term debt
    
    
    (327,819
    )
    
    
    (472,358
    )Net change in notes payable and line of credit
    
    
    584,982
    
    
    
    (4,293,119
    )Distributions to members
    
    
    (16,978,425
    )
    
    
    (15,174,426
    )Distributions to minority interest
    
    
    (306,000
    )
    
    
    (510,000
    )NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES
    
    
    (26,414,083
    )
    
    
    (24,743,920
    )NET CHANGE IN CASH AND CASH EQUIVALENTS
    
    
    11,396,674
    
    
    
    2,346,914CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD
    
    
    7,776,395
    
    
    
    7,999,443END OF PERIOD
    
    $
    19,173,069
    
    
    $
    10,346,357
  6




---



##### Table of Contents



SUMMIT HOTEL PROPERTIES, LLC
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
 2008
    
    
    2007SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:Cash payments for interest
    
    $
    13,385,605
    
    
    $
    11,547,315Cash payments for state income taxes
    
    $
    764,913
    
    
    $
    384,722SUPPLEMENTAL DISCLOSURE OF
NON-CASH FINANCIAL INFORMATION:Acquisitions of hotel properties and land through
issuance
of debt
    
    $
    4,647,237
    
    
    $
    42,341,906Construction in progress financed through related
party
accounts payable
    
    $
    2,976,602
    
    
    $
    1,034,092Construction in progress financed through issuance
of debt
    
    $
    24,836,712
    
    
    $
    65,638,066Issuance of long-term debt to refinance existing
long-term debt
    
    $
    9,925,237
    
    
    $
    3,286,331Conversion of notes payable to long-term debt
    
    $
    5,263,260
    
    
    $
    
  7




---



##### Table of Contents



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




---



##### Table of Contents



SUMMIT HOTEL PROPERTIES, LLC  NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)  SEPTEMBER 30, 2008
 Assets Held for Sale
   Discontinued Operations
   9




---



##### Table of Contents



SUMMIT HOTEL PROPERTIES, LLC  NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)  SEPTEMBER 30, 2008
 Three Months Ended
    
    
    Nine Months EndedSeptember 30, 2008
    
    
    September 30, 2007
    
    
    September 30, 2008
    
    
    September 30, 2007REVENUES
    
    $
    185,491
    
    
    $
    5,011,468
    
    
    $
    4,526,230
    
    
    $
    15,162,274COSTS AND EXPENSESDirect hotel operations
    
    
    137,747
    
    
    
    1,744,110
    
    
    
    1,462,429
    
    
    
    5,319,949Other hotel operating expenses
    
    
    85,381
    
    
    
    591,812
    
    
    
    552,840
    
    
    
    1,927,176General, selling and administrative
    
    
    86,030
    
    
    
    787,867
    
    
    
    806,190
    
    
    
    2,633,885Repairs and maintenance
    
    
    9,519
    
    
    
    262,081
    
    
    
    126,374
    
    
    
    849,754Depreciation and amortization
    
    
    (5,352
    )
    
    
    571,274
    
    
    
    503,150
    
    
    
    1,969,124313,325
    
    
    
    3,957,144
    
    
    
    3,450,983
    
    
    
    12,699,888INCOME FROM OPERATIONS
    
    
    (127,834
    )
    
    
    1,054,324
    
    
    
    1,075,247
    
    
    
    2,462,386OTHER INCOME (EXPENSE)Interest income
    
    
    3,134
    
    
    
    (10,949
    )
    
    
    12,960
    
    
    
    (31,500
    )Interest (expense)
    
    
    6,602
    
    
    
    (459,815
    )
    
    
    (412,579
    )
    
    
    (1,556,130
    )Gain (loss) on disposal of assets
    
    
    7,960,513
    
    
    
    1,256,542
    
    
    
    8,996,871
    
    
    
    4,426,0507,970,249
    
    
    
    785,778
    
    
    
    8,597,252
    
    
    
    2,838,420INCOME (LOSS) FROM
DISCONTINUED OPERATIONS
    
    $
    7,842,415
    
    
    $
    1,840,102
    
    
    $
    9,672,499
    
    
    $
    5,300,806
 Acquisitions
 Business Combinations
   10




---



##### Table of Contents



SUMMIT HOTEL PROPERTIES, LLC  NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)  SEPTEMBER 30, 2008
 Accrued Expenses
  2008
    
    
    2007Accrued taxes
    
    $
    6,445,429
    
    
    $
    5,071,618Accrued salaries and benefits
    
    
    1,668,481
    
    
    
    1,581,180Accrued interest
    
    
    1,309,441
    
    
    
    1,361,653Other accrued expenses
    
    
    1,563,562
    
    
    
    1,625,126$
    10,986,913
    
    
    $
    9,639,577
 Note Obligations
     Commitments and Contingencies
    11




---



##### Table of Contents



SUMMIT HOTEL PROPERTIES, LLC  NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)  SEPTEMBER 30, 2008
    Subsequent Events
     12




---



##### Table of Contents



PART I
FINANCIAL INFORMATION
 
 Item 1. Financial Statements
 
 Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
 Forward-Looking Statements
  Overview
   13




---



##### Table of Contents



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




---



##### Table of Contents



Consolidation Policy
   Revenue Recognition
  Results of Operations
     15




---



##### Table of Contents



Three Months Ended September 30, 2008 Compared with Three Months Ended September 30, 2007
 Revenues
   Three Months Ended
    
    Three Months EndedSeptember 30,
    
    September 30,2008
    
    2007
    
    IncreaseAll Company HotelsRevPAR
    
    $
    75.34
    
    
    $
    69.25
    
    
    $
    6.09Average Daily Rate
    
    $
    104.60
    
    
    $
    96.17
    
    
    $
    8.43Occupancy Rate
    
    
    72.03
    %
    
    
    72.01
    %
    
    
    0.02
    %
  16




---



##### Table of Contents



Hotel Operating Expenses
  Depreciation
  Management Expense
  Repairs and Maintenance
  17




---



##### Table of Contents



Income From Continuing Operations
  Income From Discontinued Operations
  Nine Months Ended September 30, 2008 Compared with Nine Months Ended September 30, 2007
 Revenues
   Nine Months Ended
    
    Nine Months EndedSeptember 30,
    
    September 30,2008
    
    2007
    
    Increase/(Decrease)All Company HotelsRevPAR
    
    $
    70.22
    
    
    $
    66.67
    
    
    $
    3.55Average Daily Rate
    
    $
    102.55
    
    
    $
    96.07
    
    
    $
    6.48Occupancy Rate
    
    
    68.47
    %
    
    
    69.39
    %
    
    
    (0.92
    %)
  18




---



##### Table of Contents



Hotel Operating Expenses
  Depreciation
  Management Expense
  19




---



##### Table of Contents



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




---



##### Table of Contents



Cash From Investing Activities
   Cash From Financing Activities
   1 2 3 4
 21




---



##### Table of Contents



22




---



##### Table of Contents



Uses of Cash
   23




---



##### Table of Contents



Additional Information Concerning Sources and Uses of Cash
     24




---



##### Table of Contents



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
    
    
    TBDSpokane, WA
    
    
    113
    
    
    Courtyard by Marriott
    
    Future Construction
    
    
    7/31/08
    
    
    TBDSpokane, WA
    
    
    108
    
    
    Springhill Suites
    
    Future Construction
    
    
    7/31/08
    
    
    TBDMissoula, MT
    
    
    100
    
    
    Fairfield Inn & Suites
    
    Future Construction
    
    
    7/17/08
    
    
    TBD
 
 (1)
    
    The opening date is estimated and is subject to change.(2)
    
    Number of units and franchise indicate our plans as of September 30, 2008, which are
subject to change.(3)
    
    Real estate is subject to a ground lease.   25




---



##### Table of Contents



Recent Developments
 Acquisitions and Dispositions
  Location
    
    # Rooms(2)
    
    Franchise(2)
    
    Property Sold/Purchased
    
    Status
    
    Closing Date(1)Spokane, WA
    
    
    113
    
    
    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
    
    
    12/01/2008Cottonwood
Heights, UT
    
    
    134
    
    
    Hampton Inn & Suites
    
    Land
    
    Under Contract to Purchase
    
    
    12/01/2008Charlotte, NC
    
    
    120
    
    
    Courtyard by Marriott
    
    Land
    
    Under Contract to Purchase
    
    
    12/15/2008Charlotte, NC
    
    
    125
    
    
    Hyatt Place
    
    Land
    
    Under Contract to Purchase
    
    
    12/31/2008Charlotte, NC
    
    
    127
    
    
    Hyatt Place
    
    Land
    
    Under Contract to Purchase
    
    
    12/31/2008Charlotte, NC
    
    
    122
    
    
    Fairfield Inn & Suites
    
    Land
    
    Under Contract to Purchase
    
    
    12/31/2008Scottsdale, AZ
    
    
    127
    
    
    Hyatt Place
    
    Land
    
    Under Contract to Purchase
    
    
    1/15/09Flagstaff, AZ
    
    
    116
    
    
    AmeriSuites
    
    Hotel
    
    Purchased
    
    
    10/30/08Kennewick, 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.(2)
    
    Number of units and franchise indicate our plans as of October 31, 2008, which are
subject to change.   26




---



##### Table of Contents



Loan
Transactions
   Commitments and Contingencies
   Off-Balance Sheet Arrangements
  
 Item 3. Quantitative and Qualitative Disclosures About Market Risk
   27




---



##### Table of Contents



Item 4. Controls and Procedures
   
 PART II
OTHER INFORMATION
 
 Item 1. Legal Proceedings
  
 Item 1A. Risk Factors
  28




---



##### Table of Contents



Current economic conditions may adversely affect our industry, business and results of operations,
and our ability to obtain financing on reasonable and acceptable terms.
    
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  
 Item 3. Defaults Upon Senior Securities
  29




---



##### Table of Contents



Item 4. Submission of Matters to a Vote of Security Holders
  
 Item 5. Other Information
  
 Item 6. Exhibits
  ExhibitNumber
    
    Description of Exhibit10.1
    
    Loan Agreement between Summit Hotel Properties, LLC and Compass Bank, dated September
17, 2008.31.1
    
    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




---



##### Table of Contents



SIGNATURES
  SUMMIT HOTEL PROPERTIES, LLCDate: November 13, 2008
    By:
    /s/ Kerry W. BoekelheideKerry W. BoekelheideChief Executive Officer and ManagerDate: November 13, 2008
    By:
    /s/ Daniel P. HansenDaniel P. HansenChief Financial Officer and Manager 31




---



##### Table of Contents



EXHIBIT INDEX
 10.1
    
    Loan Agreement between Summit Hotel Properties, LLC and Compass Bank, dated September
17, 2008.31.1
    
    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.
 32