##### 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, 2007
 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 StatementsCondensed Consolidated Balance Sheets as of September 30, 2007 (Unaudited) and
December 31, 2006
    
    
    3Condensed Consolidated Statements of Operations for the three months and nine months
ended September 30, 2007 and 2006 (Unaudited)
    
    
    4Condensed Consolidated Statements of Changes in Members Equity for the nine months
ended September 30, 2007 (Unaudited)
    
    
    5Condensed Consolidated Statements of Cash Flows for the nine months ended September
30, 2007 and 2006 (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
    
    
    29Item 5.
    
    Other Information
    
    
    29Item 6.
    
    Exhibits
    
    
    29Certification 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
 SEPTEMBER 30, 2007 (UNAUDITED) AND DECEMBER 31, 2006
 (Unaudited)
    
    
    (Audited)2007
    
    
    2006ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    10,346,357
    
    
    $
    7,999,443Restricted cash
    
    
    2,554,018
    
    
    
    2,479,940Trade receivables
    
    
    5,415,687
    
    
    
    3,151,673Prepaid expenses and other
    
    
    934,103
    
    
    
    1,761,769Assets held for sale
    
    
    8,113,178
    
    
    
    3,110,559Total current assets
    
    
    27,363,343
    
    
    
    18,503,384PROPERTY AND EQUIPMENT, NET
    
    
    422,813,249
    
    
    
    331,706,663OTHER ASSETSDeferred charges and other assets, net
    
    
    4,303,223
    
    
    
    4,400,900Restricted cash
    
    
    1,172,046
    
    
    
    1,348,538Total other assets
    
    
    5,475,269
    
    
    
    5,749,438TOTAL ASSETS
    
    $
    455,651,861
    
    
    $
    355,959,485LIABILITIES AND MEMBERS EQUITYCURRENT LIABILITIESCurrent portion of long-term debt
    
    $
    22,066,000
    
    
    $
    12,030,000Lines of credit
    
    
    25,450,864
    
    
    
    7,432,397Notes payable
    
    
    92,001,254
    
    
    
    7,472,868Accounts payable
    
    
    5,981,880
    
    
    
    1,303,471Related party accounts payable
    
    
    1,392,886
    
    
    
    2,825,398Accrued expenses
    
    
    9,502,021
    
    
    
    8,044,929Total current liabilities
    
    
    156,394,905
    
    
    
    39,109,063LONG-TERM DEBT, NET OF CURRENT PORTION
    
    
    196,949,563
    
    
    
    210,139,609COMMITMENTS AND CONTINGENCIESMINORITY INTERESTS
    
    
    (1,576,351
    )
    
    
    (1,511,494
    )MEMBERS EQUITYClass A, 1,166.62 units issued and outstanding
    
    
    87,393,117
    
    
    
    88,253,669Class A-1, 133.25 units issued and outstanding
    
    
    10,952,697
    
    
    
    11,035,274Class B, 81.36 units issued and outstanding
    
    
    4,404,649
    
    
    
    4,972,353Class C, 173.60 units issued and outstanding
    
    
    1,133,281
    
    
    
    3,961,011Total members equity
    
    
    103,883,744
    
    
    
    108,222,307TOTAL LIABILITIES AND MEMBERS EQUITY
    
    $
    455,651,861
    
    
    $
    355,959,485
  3




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SUMMIT HOTEL PROPERTIES, LLC
 
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
 FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
 Three Months Ended
    
    
    Nine Months EndedSeptember 30, 2007
    
    
    September 30, 2006
    
    
    September 30, 2007
    
    
    September 30, 2006REVENUESRoom revenues
    
    $
    34,712,179
    
    
    $
    30,612,563
    
    
    $
    96,626,561
    
    
    $
    86,759,195Other hotel operations revenues
    
    
    440,636
    
    
    
    488,514
    
    
    
    1,555,818
    
    
    
    1,455,93835,152,815
    
    
    
    31,101,077
    
    
    
    98,182,379
    
    
    
    88,215,133COSTS AND EXPENSESDirect hotel operations
    
    
    10,531,812
    
    
    
    9,316,706
    
    
    
    29,560,450
    
    
    
    26,872,913Other hotel operating expenses
    
    
    3,691,803
    
    
    
    3,261,993
    
    
    
    10,126,692
    
    
    
    9,347,468General, selling and administrative
    
    
    5,723,029
    
    
    
    5,186,552
    
    
    
    17,900,517
    
    
    
    15,429,187Repairs and maintenance
    
    
    2,676,739
    
    
    
    1,949,671
    
    
    
    9,120,996
    
    
    
    6,628,993Depreciation and amortization
    
    
    4,559,084
    
    
    
    3,854,526
    
    
    
    12,572,609
    
    
    
    11,573,92427,182,467
    
    
    
    23,569,448
    
    
    
    79,281,264
    
    
    
    69,852,485INCOME FROM OPERATIONS
    
    
    7,970,348
    
    
    
    7,531,629
    
    
    
    18,901,115
    
    
    
    18,362,648OTHER INCOME (EXPENSE)Interest income
    
    
    125,565
    
    
    
    303,038
    
    
    
    306,934
    
    
    
    504,051Interest (expense)
    
    
    (4,099,368
    )
    
    
    (3,316,032
    )
    
    
    (11,040,364
    )
    
    
    (9,415,134
    )Gain (loss) on disposal of assets
    
    
    (379,830
    )
    
    
    (863,774
    )
    
    
    (522,493
    )
    
    
    (899,568
    )(4,353,633
    )
    
    
    (3,876,768
    )
    
    
    (11,255,923
    )
    
    
    (9,810,651
    )INCOME BEFORE
MINORITY INTERESTS
    
    
    3,616,715
    
    
    
    3,654,861
    
    
    
    7,645,192
    
    
    
    8,551,997MINORITY INTERESTS IN
OPERATIONS OF CONSOLIDATED
PARTNERSHIPS
    
    
    (107,439
    )
    
    
    (135,920
    )
    
    
    445,143
    
    
    
    319,108INCOME FROM CONTINUING
OPERATIONS
    
    
    3,724,154
    
    
    
    3,790,781
    
    
    
    7,200,049
    
    
    
    8,232,889INCOME (LOSS) FROM
DISCONTINUED OPERATIONS
    
    
    1,372,051
    
    
    
    390,193
    
    
    
    4,379,677
    
    
    
    2,421,380NET INCOME BEFORE INCOME TAXES
    
    
    5,096,205
    
    
    
    4,180,974
    
    
    
    11,579,726
    
    
    
    10,654,269STATE INCOME TAX (EXPENSE)
    
    
    (291,864
    )
    
    
    (264,970
    )
    
    
    (743,863
    )
    
    
    (532,849
    )NET INCOME
    
    $
    4,804,341
    
    
    $
    3,916,004
    
    
    $
    10,835,863
    
    
    $
    10,121,420BASIC AND DILUTED EARNINGS
PER CAPITAL UNIT
    
    $
    3,089.95
    
    
    $
    2,518.61
    
    
    $
    6,969.16
    
    
    $
    6,572.82WEIGHTED AVERAGE NUMBER OF
UNITS OUTSTANDING FOR
CALCULATION OF BASIC AND
DILUTED EARNINGS PER
CAPITAL UNIT
    
    
    1,554.83
    
    
    
    1,554.83
    
    
    
    1,554.83
    
    
    
    1,539.89
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SUMMIT HOTEL PROPERTIES, LLC
 
 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS EQUITY
 (UNAUDITED)
 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007
 # of CapitalUnits
    
    
    Class A
    
    
    Class A-1
    
    
    Class B
    
    
    Class C
    
    
    TotalBALANCES, JANUARY 1, 2007
    
    
    1,554.83
    
    
    $
    88,253,669
    
    
    $
    11,035,274
    
    
    $
    4,972,353
    
    
    $
    3,961,011
    
    
    $
    108,222,307Net Income
    
    
    
    
    
    
    9,887,119
    
    
    
    948,744
    
    
    
    
    
    
    
    
    
    
    
    10,835,863Distributions to members
    
    
    
    
    
    
    (10,747,671
    )
    
    
    (1,031,321
    )
    
    
    (567,704
    )
    
    
    (2,827,730
    )
    
    
    (15,174,426
    )BALANCES, SEPTEMBER 30,
2007
    
    
    1,554.83
    
    
    $
    87,393,117
    
    
    $
    10,952,697
    
    
    $
    4,404,649
    
    
    $
    1,133,281
    
    
    $
    103,883,744
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SUMMIT HOTEL PROPERTIES, LLC
 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
 2007
    
    
    2006OPERATING ACTIVITIESNet income
    
    $
    10,835,863
    
    
    $
    10,121,420Adjustments to reconcile net income to
net cash from operating activities:Depreciation and amortization
    
    
    13,409,323
    
    
    
    12,555,858Minority
interests in operations of consolidated partnership
    
    
    445,143
    
    
    
    319,108(Gain) loss on disposal of assets
    
    
    (3,903,242
    )
    
    
    (1,264,881
    )Changes in current assets and liabilities:Trade receivables
    
    
    (2,264,014
    )
    
    
    (1,397,798
    )Prepaid expenses and other
    
    
    827,666
    
    
    
    500,496Accounts payable and related party accounts
payable
    
    
    2,211,805
    
    
    
    (2,060,291
    )Accrued expenses
    
    
    1,463,506
    
    
    
    613,138NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
    
    
    23,026,050
    
    
    
    19,387,050INVESTING ACTIVITIESLand and hotel acquisitions and construction in progress
    
    
    (1,034,092
    )
    
    
    (3,675,560
    )Purchases of other property & equipment
    
    
    (7,857,110
    )
    
    
    (6,820,461
    )Proceeds from asset dispositions
    
    
    12,853,572
    
    
    
    8,502,709Restricted cash fundings
    
    
    102,414
    
    
    
    2,333,784NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES
    
    
    4,064,784
    
    
    
    340,472FINANCING ACTIVITIESProceeds from issuance of long-term debt
    
    
    5,213,669
    
    
    
    13,623,349Principal payments on long-term debt
    
    
    (9,507,686
    )
    
    
    (2,999,350
    )Financing fees on long-term debt
    
    
    (472,358
    )
    
    
    (682,919
    )Net change in notes payable
    
    
    (4,293,119
    )
    
    
    (1,422,338
    )Proceeds from equity contributions
    
    
    
    
    
    
    Distributions to members
    
    
    (15,174,426
    )
    
    
    (13,983,122
    )Distributions to minority interest
    
    
    (510,000
    )
    
    
    (510,000
    )NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES
    
    
    (24,743,920
    )
    
    
    (5,974,380
    )NET CHANGE IN CASH AND CASH EQUIVALENTS
    
    
    2,346,914
    
    
    
    13,753,142CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD
    
    
    7,999,443
    
    
    
    7,339,976END OF PERIOD
    
    $
    10,346,357
    
    
    $
    21,093,118
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)  page 2
 2007
    
    
    2006SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:Cash payments for interest
    
    $
    11,547,315
    
    
    $
    9,993,417Cash payments for state income taxes
    
    $
    384,722
    
    
    $
    1,305,895SUPPLEMENTAL DISCLOSURE OF
NON-CASH FINANCIAL INFORMATION:Acquisitions of hotel properties and land through
issuance
of capital units
    
    $
    
    
    
    $
    6,547,500Acquisitions of hotel properties and land through
issuance
of debt
    
    $
    42,341,906
    
    
    $
    26,861,372Acquisitions of hotel properties and land financed
through like-kind exchange
    
    $
    
    
    
    $
    2,592,260Construction in progress financed through related
party
accounts payable
    
    $
    1,034,092
    
    
    $
    1,007,595Construction in progress financed through issuance
of debt
    
    $
    65,638,066
    
    
    $
    5,253,122Conversion of notes payable to long-term debt
    
    $
    
    
    
    $
    8,551,829Issuance of long-term debt to refinance existing
long-term debt
    
    $
    3,286,331
    
    
    $
    14,425,622Conversion of debt to equity
    
    $
    
    
    
    $
    5,910,000
  7




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SUMMIT HOTEL PROPERTIES, LLC
 
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 SEPTEMBER 30, 2007
 NOTE 1  SELECTED SUPPLEMENTARY INFORMATION
 Basis of Presentation
   Use of Estimates
  Recent Accounting Pronouncements
 Fair Value
Measurement"
 The Fair
Value Option for Financial Assets and Financial Liabilities"
  8




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SUMMIT HOTEL PROPERTIES, LLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 2007
 Assets Held for Sale
    2007
    
    
    2006Land
    
    $
    1,175,000
    
    
    $
    1,048,864Building
    
    
    6,806,174
    
    
    
    2,048,055Furniture, fixtures and equipment
    
    
    1,772,802
    
    
    
    322,8349,753,976
    
    
    
    3,419,753Less accumulated depreciation
    
    
    1,640,798
    
    
    
    309,194$
    8,113,178
    
    
    $
    3,110,559
 Discontinued Operations
   9




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SUMMIT HOTEL PROPERTIES, LLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 2007
  Three Months Ended
    
    
    Nine Months EndedSeptember 30, 2007
    
    
    September 30, 2006
    
    
    September 30, 2007
    
    
    September 30, 2006REVENUES
    
    $
    1,225,428
    
    
    $
    2,423,409
    
    
    $
    4,420,405
    
    
    $
    7,217,421COSTS AND EXPENSESDirect hotel operations
    
    
    402,421
    
    
    
    749,860
    
    
    
    1,546,948
    
    
    
    2,491,683Other hotel operating expenses
    
    
    158,621
    
    
    
    268,137
    
    
    
    616,442
    
    
    
    993,970General, selling and administrative
    
    
    163,104
    
    
    
    377,221
    
    
    
    714,386
    
    
    
    1,202,817Repairs and maintenance
    
    
    69,066
    
    
    
    132,763
    
    
    
    218,414
    
    
    
    579,575Depreciation and amortization
    
    
    193,804
    
    
    
    256,879
    
    
    
    836,714
    
    
    
    981,934987,016
    
    
    
    1,784,860
    
    
    
    3,932,904
    
    
    
    6,249,979INCOME FROM OPERATIONS
    
    
    238,412
    
    
    
    638,549
    
    
    
    487,501
    
    
    
    967,442OTHER INCOME (EXPENSE)Interest income
    
    
    4,346
    
    
    
    10,590
    
    
    
    10,251
    
    
    
    35,818Interest (expense)
    
    
    (110,077
    )
    
    
    (229,747
    )
    
    
    (506,951
    )
    
    
    (578,283
    )State income tax (expense)
    
    
    (6,228
    )
    
    
    (40,086
    )
    
    
    (36,859
    )
    
    
    (168,046
    )Gain (loss) on disposal of assets
    
    
    1,245,598
    
    
    
    10,887
    
    
    
    4,425,735
    
    
    
    2,164,4491,133,639
    
    
    
    (248,356
    )
    
    
    3,892,176
    
    
    
    1,453,938INCOME (LOSS) FROM
DISCONTINUED OPERATIONS
    
    $
    1,372,051
    
    
    $
    390,193
    
    
    $
    4,379,677
    
    
    $
    2,421,380
 Acquisitions
 Business Combinations
  10




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SUMMIT HOTEL PROPERTIES, LLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 2007
       5/2/07
    
    
    6/5/07Current assets
    
    $
    
    
    
    $
    Property and equipment
    
    
    14,110,000
    
    
    
    9,150,000Intangible assets
    
    
    
    
    
    
    Total assets acquired
    
    
    14,110,000
    
    
    
    9,150,000Current liabilities
    
    
    
    
    
    
    Long-term debt
    
    
    
    
    
    
    Total liabilities assumed
    
    
    
    
    
    
    Net assets acquired
    
    $
    14,110,000
    
    
    $
    9,150,000
 Accrued Expenses
  2007
    
    
    2006Accrued taxes
    
    $
    5,788,096
    
    
    $
    3,810,350Accrued salaries and benefits
    
    
    1,396,411
    
    
    
    1,517,101Accrued interest
    
    
    924,424
    
    
    
    901,438Other accrued expenses
    
    
    1,393,090
    
    
    
    1,816,040$
    9,502,021
    
    
    $
    8,044,929
  11




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SUMMIT HOTEL PROPERTIES, LLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 2007
 Note Obligations
    Subsequent Events
    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
  Impairment of Long-Lived Assets
    Consolidation Policy
  14




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Revenue Recognition
  Results of Operations
     15




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Three Months Ended September 30, 2007 Compared with Three Months Ended September 30, 2006
 Revenues
   Three Months Ended
    
    Three Months EndedSeptember 30,
    
    September 30,2007
    
    2006
    
    Increase/(Decrease)All Company HotelsRevPAR
    
    $
    69.24
    
    
    $
    66.46
    
    
    $
    2.78Average Daily Rate
    
    $
    96.17
    
    
    $
    88.79
    
    
    $
    7.38Occupancy Rate
    
    
    72.00
    %
    
    
    74.85
    %
    
    
    (2.85
    )%
  Hotel Operating Expenses
  16




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Depreciation
  Management Expense
  Repairs and Maintenance
  Net Income
  17




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Nine Months Ended September 30, 2007 Compared with Nine Months Ended September 30, 2006
 Revenues
   Nine Months Ended
    
    Nine Months EndedSeptember 30,
    
    September 30,2007
    
    2006
    
    Increase/(Decrease)All Company HotelsRevPAR
    
    $
    66.66
    
    
    $
    63.35
    
    
    $
    3.31Average Daily Rate
    
    $
    96.07
    
    
    $
    88.30
    
    
    $
    7.77Occupancy Rate
    
    
    69.39
    %
    
    
    71.74
    %
    
    
    (2.35
    )%
  Hotel Operating Expenses
  18




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Depreciation
  Management Expense
  Repairs and Maintenance
  Net Income
  19




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




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1 2 3 4
   21




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Uses of Cash
  22




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Additional Information Concerning Sources and Uses of Cash
    23




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24




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Location
    
    # Rooms
    
    Franchise
    
    Status
    
    Opening Date (1)Jackson, MS (2)
    
    
    100
    
    
    Residence Inn
    
    Construction Completed
    
    10/07Ft. Collins, CO (2)
    
    
    120
    
    
    Hilton Garden Inn
    
    Construction Completed
    
    09/07Flagstaff, AZ (2)
    
    
    150
    
    
    Courtyard by Marriott
    
    Future Construction
    
    06/09Ft. Worth, TX (2)
    
    
    105
    
    
    Hampton Inn & Suites
    
    Under Construction
    
    11/07Denver, CO (2)
    
    
    124
    
    
    SpringHill Suites
    
    Under Construction
    
    12/07Bloomington, MN (2)
    
    
    113
    
    
    Cambria Suites
    
    Under Construction
    
    11/07Bloomington, MN (2)
    
    
    146
    
    
    Hampton Inn & Suites
    
    Construction Completed
    
    09/07Boise, ID (2)
    
    
    119
    
    
    Cambria Suites
    
    Construction Completed
    
    04/07Baton Rouge, LA (2)
    
    
    127
    
    
    Cambria Suites
    
    Under Construction
    
    07/08Jacksonville, FL(2)
    
    
    136
    
    
    Aloft
    
    Future Construction
    
    TBDJacksonville, FL(2)
    
    
    119
    
    
    TBA
    
    Future Construction
    
    TBDSan Antonio, TX (2)
    
    
    126
    
    
    Cambria Suites
    
    Future Construction
    
    TBDSan Antonio, TX (2)
    
    
    123
    
    
    TBA
    
    Future Construction
    
    TBDSan Antonio, TX (2)
    
    
    136
    
    
    Aloft
    
    Future Construction
    
    TBDSan Antonio, TX (2)
    
    
    119
    
    
    Cambria Suites
    
    Future Construction
    
    TBDHouston, TX (2)
    
    
    118
    
    
    Cambria Suites
    
    Under Construction
    
    08/08Portland, OR (2)
    
    
    120
    
    
    Residence Inn
    
    Future Construction
    
    TBDPortland, OR (2)
    
    
    127
    
    
    Hyatt Place
    
    Future Construction
    
    TBDEl Paso, TX (2)
    
    
    100
    
    
    Hampton Inn & Suites
    
    Future Construction
    
    TBDEl Paso, TX (2)
    
    
    120
    
    
    Courtyard by Marriott
    
    Future Construction
    
    TBDFt. Myers, FL (2)
    
    
    150
    
    
    Hyatt Place
    
    Future Construction
    
    TBD
 
 (1)
    
    The opening date is estimated and is subject to change.(2)
    
    Number of units and franchise indicate our plans as of October 31, 2007, which are
subject to change.  25




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##### Table of Contents



Recent Developments
 Recent Loan Transactions
  Acquisitions and Dispositions
  Location
    
    # Rooms
    
    Franchise
    
    Property Purchased
    
    Status
    
    Closing Date (1)Coeur dAlene, ID
    
    
    69
    
    
    Fairfield Inn
    
    Hotel
    
    Sold
    
    4/24/07San Antonio, TX(2)
    
    
    126
    
    
    Cambria Suites
    
    Land
    
    Purchased
    
    1/12/07San Antonio, TX(2)
    
    
    123
    
    
    TBA
    
    Land
    
    Purchased
    
    1/12/07San Antonio, TX(2)
    
    
    136
    
    
    Aloft
    
    Land
    
    Purchased
    
    1/22/07San Antonio, TX(2)
    
    
    119
    
    
    Cambria Suites
    
    Land
    
    Purchased
    
    1/22/07Houston, TX(2)
    
    
    118
    
    
    Cambria Suites
    
    Land
    
    Purchased
    
    2/15/07Irving, TX
    
    
    124
    
    
    AmeriSuites
    
    Hotel
    
    Purchased
    
    5/2/07Irving, TX
    
    
    128
    
    
    AmeriSuites
    
    Hotel
    
    Purchased
    
    5/2/07El Paso, TX(2)
    
    
    100
    
    
    Hampton Inn
    
    Land
    
    Purchased
    
    7/16/07El Paso, TX(2)
    
    
    120
    
    
    Courtyard
    
    Land
    
    Purchased
    
    7/16/07Portland, OR(2)
    
    
    120
    
    
    Residence
    
    Land
    
    Leased
    
    6/13/07Portland, OR(2)
    
    
    127
    
    
    Hyatt Place
    
    Land
    
    Leased
    
    6/13/07Ridgeland, MS
    
    
    92
    
    
    Staybridge Suites
    
    Hotel
    
    Purchased
    
    6/5/07Boise, ID
    
    
    N/A
    
    
    N/A
    
    Land
    
    Sold
    
    11/7/07Lincoln, NE
    
    
    83
    
    
    Quality Suites
    
    Hotel
    
    Sold
    
    7/27/07Pueblo, CO
    
    
    111
    
    
    Hampton Inn
    
    Hotel
    
    Sold
    
    6/1/07Ft. Myers, FL(2)
    
    
    150
    
    
    Hyatt Place
    
    Land
    
    Purchased
    
    8/30/07Ft. Myers, FL(3)
    
    
    N/A
    
    
    N/A
    
    Land
    
    Under Contract to Sell
    
    2/22/07Fenton, MO
    
    
    95
    
    
    TownePlace Suites
    
    Hotel
    
    Under Contract to Sell
    
    11/26/07Fenton, MO
    
    
    106
    
    
    Fairfield Inn
    
    Hotel
    
    Under Contract to Sell
    
    11/26/07Ft. Collins, CO
    
    TBD
    
    TBD
    
    Land
    
    Under Contract
    
    TBD
 
 (1)
    
    For properties under contract, the closing date is estimated.(2)
    
    Number of units and franchise indicate our plans as of September 30, 2007, which are
subject to change.(3)
    
    The Company is selling approximately 2.8 acres of extra land to General Electric for
restaurant development.  26




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##### Table of Contents



Wholly-Owned Subsidiary
  Commitments and Contingencies
  Off-Balance Sheet Arrangements
  
 Item 3. Quantitative and Qualitative Disclosures About Market Risk
   27




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##### Table of Contents



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




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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
  
 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.
 29




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##### Table of Contents



SIGNATURES
  SUMMIT HOTEL PROPERTIES, LLCDate:      November 14, 2007
    By:
    /s/ Kerry W. BoekelheideKerry W. BoekelheideChief Executive Officer and Manager Date:      November 14, 2007
    By:
    /s/ Christopher D. BillsChristopher D. BillsChief Financial Officer and Manager 30




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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.
 31