Summit Hotel Properties, Inc. Prices Public Offering of 7.875% Series B Preferred Stock

SIOUX FALLS, S.D.--(BUSINESS WIRE)--

Summit Hotel Properties, Inc. INN (the “Company”) today announced the pricing of an underwritten public offering of 2,700,000 shares of its 7.875% Series B Cumulative Redeemable Preferred Stock (“Series B Preferred Stock”) at a public offering price of $25.00 per share. Dividends on the Series B Preferred Stock will be payable quarterly in arrears on or about the last day of February, May, August and November of each year, commencing on or about February 28, 2013, at the rate of 7.875% per annum of the $25.00 liquidation preference, which is equivalent to $1.96875 per annum per share. The offering is expected to close on December 11, 2012. The underwriters have a 30-day option to purchase up to an additional 300,000 shares of Series B Preferred Stock to cover over-allotments, if any. All the shares are being sold by the Company.

The Company intends to apply to list the Series B Preferred Stock on the New York Stock Exchange under the symbol “INNPrB.”

The Company estimates that the net proceeds from this offering, after deducting underwriting discounts, commissions and estimated offering expenses, will be approximately $65.1 million (or approximately $72.4 million if the underwriters' over-allotment option is exercised in full). The Company expects to use the net proceeds to reduce the outstanding balance under its revolving credit facility, and the balance, if any, for general corporate purposes.

Raymond James, Baird, RBC Capital Markets and Stifel Nicolaus Weisel are acting as joint book-running managers for the offering. Deutsche Bank Securities and KeyBanc Capital Markets are acting as senior co-managers for the offering. Janney Montgomery Scott, JMP Securities and MLV & Co are acting as co-managers for the offering.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of, or any solicitation of an offer to buy, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering is being made solely by means of the prospectus, including a prospectus supplement, forming part of the effective shelf registration statement.

A copy of the prospectus supplement and base prospectus relating to the offering may be obtained by contacting: Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida 33716, or by calling toll-free at 1-800-248-8863, or emailing prospectus@raymondjames.com; Robert W. Baird & Co. Incorporated, Attention: Syndicate Department, 777 E. Wisconsin Avenue, Milwaukee, WI 53202, or by calling (800) 792-2473, or by email at syndicate@rwbaird.com; RBC Capital Markets, LLC, Three World Financial Center, 200 Vesey Street, 8th Floor, New York, New York 10281, Attention: Prospectus Department (telephone: (866) 375-6829 or via email: rbcnyfixedincomeprospectus@rbccm.com); or Stifel, Nicolaus & Company, Incorporated, One South Street, 15th Floor, Baltimore, MD 21202, Attention: Syndicate Department or by telephone at (443) 224-1988.

About Summit Hotel Properties, Inc.

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 December 3, 2012, the Company's hotel portfolio consisted of 82 hotels, containing a total of 8,674 guestrooms, located in 21 states.

Forward-Looking Statements

This press release contains certain “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are based upon the Company's expectations, but these statements are not guaranteed to occur. For example, the fact that this offering has priced may imply that this offering will close, but the closing is subject to conditions customary in transactions of this type and may be delayed or may not occur at all. Investors should not place undue reliance upon forward-looking statements.