Press Release

Re-branding of 11 properties proceeding according to plan

SIOUX FALLS, S.D.--(BUSINESS WIRE)-- Summit Hotel Properties, Inc. (NYSE: INN), a real estate investment trust (REIT) specializing in the ownership of premium-branded hotels in the upscale and upper midscale segments, announced today that the Company has closed on the previously announced acquisition of the following property:

• A 122-room Hilton Garden Inn in Gwinnett/Duluth (Atlanta), GA for $115,000 a key and a post-renovation NTM capitalization rate of 9.0 percent.

The Company also announced it has signed purchase contracts on the following properties:

• A 90-room Courtyard by Marriott in El Paso, TX for $142,000 a key and a post-renovation NTM capitalization rate of 8.5 percent.
• A 131-room independent hotel in Park City, UT for $143,000 a key and a post-renovation and stabilized capitalization rate of 8.0 percent.

The completions of these acquisitions are subject to lender approval and satisfactory completion of due diligence and other customary closing conditions.

The purchase of these properties is squarely in line with the Company’s strategy of acquiring immediately accretive properties at attractive capitalization rates and identifying rebranding opportunities to create value. It also aligns with the Company’s “clustering” strategy by grouping hotels in close geographic areas to gain efficiencies and management advantages. “The Courtyard in El Paso is next door to our existing Hampton Inn and Suites. This will allow our management team to more effectively and efficiently manage the properties to maximize return for our investors. This “clustering” strategy has worked very well for our company over the past nearly twenty years,” said Dan Hansen, Summit’s Chief Executive Officer. “The independent hotel is a rebranding opportunity in a very high barrier to entry market and we have chosen IHG to brand this conversion.”

Choice Conversions

As of March 23, 2011Choice Hotels International removed eleven of the Company’s properties from its franchise system. The Company continues to dispute this action and remains in arbitration to resolve the matter. In the meantime, the Company immediately took action to pursue conversion of these eleven properties. “We were very pleased with the support and interest shown by all the franchises,” said Hansen, “Clearly they all saw the importance of these properties in their respective markets.”

The Company has identified brands for all hotels previously branded with Choice franchises, as shown in the table below:

* Pending final franchise approval

The Company plans to provide periodic guidance and a full report next quarter regarding assessment of both near-term and longer-term impact from these conversions. For example, the former Cambria Suites by Choice in Boise, ID was converted to a Holiday Inn on May 2, 2011. This conversion occurred with minimal capital deployed and minimal disruption. The property immediately demonstrated a significant performance improvement, posting RevPAR growth of over 25% in its first month.

About Summit Hotel Properties

Summit Hotel Properties, Inc. is a self-advised real estate investment trust focused on acquiring and owning premium-branded select-service hotels in the upscale and upper midscale segments. As of June 6, 2011, the Company’s hotel portfolio consisted of 69 hotels with a total of 7,010 guestrooms located in 19 states. Additional information about Summit may be found at the company’s website, www.shpreit.com.

Forward Looking Statements

Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These forward-looking statements include statements related to the Company’s ability to continue to execute its strategy by selectively expanding the portfolio while continuing to maximize the operating results of its existing portfolio. For a description of factors that may cause the Company’s actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, as filed with the Securities and Exchange Commission.

Source: Summit Hotel Properties

Daly Gray Public Relations

Jerry Daly, Carol McCune, 703-435-6293 (Media)

jerry@dalygray.com

or

Summit Hotel Properties, Inc.

Dan Boyum, 605-782-2015 (Investors)

dboyum@shpreit.com