Document:

Exhibit 10.3

 

Execution Version

 

AMERICAN REALTY CAPITAL HOSPITALITY PORTFOLIO
SMT ALT, LLC

c/o American Realty Hospitality Trust, Inc.

405 Park Avenue

New York, NY 10022

 

January 12, 2017

 

Summit Hotel OP, LP

Each of the Sellers listed on Schedule
1 to the Purchase Agreement

c/o Summit Hotel Properties, Inc.

12600 Hill Country Boulevard, Suite R-100

Austin, TX 78738

Attention: Chris Eng, Executive Vice President,
General Counsel & Chief Risk Officer

 

Dear Chris:

 

Reference is made to
that certain Real Estate Purchase and Sale Agreement, dated as of June 2, 2015, by and among the sellers listed on Schedule 1 attached
thereto (each a “Seller” and collectively the “Sellers”), Summit Hotel OP, LP (“Summit”)
and American Realty Capital Hospitality Portfolio SMT, LLC (the “Original Purchaser”), as amended pursuant to
that certain letter agreement dated as of July 15, 2015 (the “July 15 Letter Agreement”), that certain letter
agreement dated as of August 21, 2015 (the “August 21 Letter Agreement”), that certain letter agreement dated
as of October 20, 2015 (the “October 20 Letter Agreement”), that certain extension notice dated as of October
26, 2015 (the “Extension Notice”), that certain reinstatement agreement dated as of February 11, 2016 (the “Reinstatement
Agreement”), that certain letter agreement dated as of December 30, 2016 (the “December 30 Letter Agreement”)
and that certain letter agreement dated as of January 10, 2017 (the “January 10 Letter Agreement”, and collectively
with the July 15 Letter Agreement, the August 21 Letter Agreement, the October 20 Letter Agreement, the Extension Notice the Reinstatement
Agreement, the December 30 Letter Agreement and the January 10 Letter Agreement, the “Purchase Agreement”).
Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Purchase Agreement.

 

Pursuant to the Reinstatement
Agreement, American Realty Capital Hospitality Portfolio SMT ALT, LLC (the “Purchaser”) replaced the Original
Purchaser under the Purchase Agreement.

 

Sellers and Purchaser
desire to change the definition of Closing Date and have agreed to further amend the Purchase Agreement to reflect such modification
on the terms and conditions set forth in this letter agreement (this “Letter Agreement”).

 

As part of the consideration
for the definition change, American Realty Capital Hospitality Trust, Inc. (“HOST”), the parent company of Purchaser,
is executing, concurrently with this Letter Agreement, a First Amendment to the Loan Agreement by and between HOST and Summit,
and a Loan Agreement to secure an additional loan from Summit in the amount of $3 million.

 

     

     

    

 

The Property listed
on Schedule 1 to the Purchase Agreement as “Courtyard - El Paso, TX” (the “El Paso Courtyard”) is
currently under contract to be sold to a bona fide third party purchaser that is not an Affiliate of Sellers or Summit.

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound,
Sellers, Summit and Purchaser hereby agree that the Purchase Agreement shall be amended and modified in accordance with Section
14.4 thereof as follows:

 

1.          New
Closing Date. Section 4.1 of the Purchase Agreement is hereby amended to read in its entirety as follows:

 

4.1           Closing
Date. The closing of the transactions contemplated hereby (the “Closing”) shall occur through escrow at
4:00 p.m. (New York time) on April 27, 2017, or at such later date as the Closing may be adjourned or extended (including, without
limitation as set forth in Section 3.1.3) in accordance with the express terms of this Agreement (the “Closing Date”).
Notwithstanding the foregoing, and unless prohibited by Section 7 of the Reinstatement of this Agreement dated February 11, 2016,
Purchaser shall hereby have the right to cause the Closing Date to occur on any Business Day prior to April 27, 2017, upon providing
notice to such effect to Summit and Sellers at least 30 days prior to such desired Closing Date.

 

The Closing shall take place at the New York, New
York office of Proskauer Rose LLP, or such other place as Sellers and Purchaser shall agree in writing. The Closing shall be a
so-called “New York style” closing. For the avoidance of doubt, the provisions of Section 7.1 and 7.2 shall apply if
the Closing does not occur on or prior to the then-scheduled Closing Date and such date is not properly and timely extended in
accordance with the terms hereof. Sellers may elect, by written notice to Purchaser and without the consent of Purchaser, to defer
the Closing pursuant to Sellers’ rights expressly set forth herein.

 

2.          El
Paso Courtyard. Notwithstanding the amendment to the Closing Date discussed above, the closing date for the El Paso Courtyard
shall be extended to October 24, 2017 (the “El Paso Courtyard Closing Date”). If, on the El Paso Courtyard Closing
Date, the El Paso Courtyard is still under contract to be sold to a bona fide third party purchaser that is not an Affiliate of
Sellers or Summit but has not been sold, the El Paso Courtyard will be deemed to be an Excluded Sold Asset (as defined in the Reinstatement
Agreement). As a result of this extension, (i) the Purchase Price due on the Closing Date shall be reduced by the Allocated Purchase
Price applicable to the El Paso Courtyard, and (ii) the portion of the New Deposit (as defined in the Reinstatement Agreement)
allocable to the El Paso Courtyard (based on its Allocated Purchase Price) shall be retained by Escrowee to be applied in accordance
with the terms of the Purchase Agreement and the Reinstatement Agreement on the earlier of (A) the El Paso Courtyard Closing Date
and (B) the date the El Paso Courtyard becomes an Excluded Asset (as defined in the Reinstatement Agreement).

 

    	 	2	 

     

    

 

3.          Ratification.
Sellers and Purchaser ratify and confirm the continued force and effect of the Purchase Agreement, as modified by this Letter Agreement.
Sellers and Purchaser agree that all terms and provisions of the Purchase Agreement shall be and remain in full force and effect
as therein written, except as otherwise expressly provided herein.

 

4.          Binding
Effect. This Letter Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors
and assigns.

 

5.          Counterparts.
This Letter Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which
taken together shall constitute one and the same Letter Agreement.

 

    	 	3	 

     

    

 

Sincerely,

 

	AMERICAN REALTY CAPITAL HOSPITALITY PORTFOLIO SMT ALT, LLC,
	a Delaware limited liability company
	 
	 	By:	/s/ Paul C. Hughes	 
	 	Name:	Paul C. Hughes	 
	 	Title:	Authorized Signatory	 

 

Signature Page to Letter Agreement

 

     

     

    

 

SUMMIT HOTEL OP, LP,

a Delaware limited partnership (Individually and in accordance
with Section 14.20 of the

Purchase Agreement on behalf of each Seller)

 

	By: SUMMIT HOTEL GP, LLC,
	its general partner
	 
	By: SUMMIT HOTEL PROPERTIES, INC.,
	
        its sole member

 

	 	By:	/s/ Chris Eng	 
	 	Name:	Chris Eng	 
	 	Title:	Secretary	 
	 	 	 	 
	SUMMIT HOSPITALITY I, LLC,	 
	a Delaware limited liability company	 
	 	 	 	 
	 	By:	/s/ Chris Eng	 
	 	Name:	Chris Eng	 
	 	Title:	Secretary	 

 

Signature Page to Letter AgreementExhibit 10.4

 

Execution Version

 

 

FIRST AMENDMENT TO LOAN AGREEMENT

 

This FIRST AMENDMENT TO
LOAN AGREEMENT, dated as of January 12, 2017 (this “Amendment”) is made between American Realty Capital Hospitality
Trust, Inc., a Maryland corporation (the “Borrower”) and Summit Hotel OP, LP (the “Lender”).

 

WHEREAS, the Borrower and
the Lender have entered into that certain Loan Agreement, dated as of February 11, 2016 (as amended, supplemented or otherwise
modified pursuant to this Amendment, the “Loan Agreement”), pursuant to which the Lender extended a loan to
the Borrower in an aggregate original principal amount of $27,500,000 (the “Loan”);

 

WHEREAS, the Borrower and
the Lender wish to amend certain provisions of the Loan Agreement in the manner and on the terms and conditions provided for herein.

 

THEREFORE, the parties
agree as set forth herein.

 

1.             Capitalized
terms used but not defined herein shall have the meanings set forth in the Loan Agreement.

 

2.             The
Loan Agreement is hereby amended as follows:

 

(a)          Section
2 of the Loan Agreement is hereby amended by adding the following immediately prior to the final sentence thereof:

 

“Subject to
the occurrence of the Summit II PSA Closing Date (defined below), the Borrower shall repay a portion of the remaining principal
amount of the Loan in an aggregate amount equal to $2,000,000, to be paid in installments of $1,000,000 on the last day of each
of August and September 2017 (the “2017 Amortization Payments”), which shall be applied to repay the outstanding
principal amount of the Summit III Advance and the Summit II Advance on a pro rata basis. Notwithstanding any provision to the
contrary in this Amendment, upon the Closing Date, as defined in the Summit II Purchase Agreement (as amended, supplemented or
otherwise modified, the “Summit II PSA Closing Date”), the outstanding principal of the Loan and any accrued
interest thereon shall become immediately due and payable in full.”

 

(b)          Section
3(a) of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

“(a) Upon
the effective date of the First Amendment to Loan Agreement, dated January 12, 2017, between the Borrower and the Lender, the Maturity
Date shall be extended (the “First Extension”) automatically and without further action to February 11, 2018
(the “First Extended Maturity Date”).”

 

(c)          Section
4(a) of the Existing Loan Agreement is hereby amended and restated by adding the following proviso at the end thereof:

 

     

     

    

 

“; provided that with respect
to the First Extension, such amount described in section 4(a)(ii) shall not be added to the principal amount of the Loan, but instead
shall be payable in cash on the earlier of (x) the Summit II PSA Closing Date and (y) the termination of the Summit II Purchase
Agreement as the result of a breach of the Summit II Purchase Agreement by American Realty Capital Hospitality Portfolio SMT ALT,
LLC or its successor or permitted assignee.”

 

(d)           Section
4 of the Loan Agreement is hereby amended to replace each instance of “First Extension Maturity Date” with “First
Extended Maturity Date,” and to replace each instance of “Second Extension Maturity Date” with “Second
Extended Maturity Date.”

 

(e)           Section
8 of the Loan Agreement is hereby deleted in its entirety and replaced with “Reserved.”

 

(f)           Section
15 of the Loan Agreement is hereby amended by adding the following clause to the end thereof:

 

“(h) if an
Event of Default, as defined in the Loan Agreement, dated as of January 12, 2017, between Borrower and Lender, occurs and remains
continuing.”

 

(g)          Annex
A to the Loan Agreement is hereby amended and restated in its entirety as set forth on Annex A hereto.

 

3.            The
amendments provided for herein shall become effective on the date (the “First Amendment Effective Date”) on
which the Borrower and the Lender shall have executed and delivered a counterpart of this Amendment and the Summit II PSA Amendment
shall have become effective. On and after the First Amendment Effective Date, each reference in the Loan Agreement to “this
Agreement”, “hereunder”, “hereof”, “herein”, or words of like import, shall refer to
the Loan Agreement as amended hereby and the term “Loan Agreement”, as used in each Loan Document, shall mean the Loan
Agreement as so amended.

 

4.            The
Amendment shall be governed and interpreted in accordance with the laws of the State of New York.

 

    	 	- 2 -	 

     

    

 

IN WITNESS WHEREOF, the
Borrower has caused this Agreement to be duly executed as of the day and year first above written.

 

	 	Borrower:
	 	 
	 	AMERICAN REALTY CAPITAL HOSPITALITY TRUST, INC.
	 	 	 
	 	By:	/s/ Paul C. Hughes
	 	Name:	 Paul C. Hughes
	 	Title:	Authorized Signatory

 

	 	lENDER:
	 	 
	 	SUMMIT HOTEL OP, LP
	 	a Delaware limited partnership
	 	By: Summit Hotel GP, LLC,
	 	a Delaware limited liability company
	 	Its: General Partner
	 	By: Summit Hotel Properties, Inc.,
	 	a Maryland corporation
	 	Its: sole member
	 	 	 
	 	By:	/s/ Chris Eng
	 	Name:	 Chris Eng
	 	Title:	Executive Vice President & General Counsel

 

     

     

    

 

Annex A

Debt Service Payment Schedule

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