EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2012

EARNINGS (LOSS) PER SHARE

NOTE 8 -EARNINGS (LOSS) PER SHARE

Presented below is a summary of the components used to calculate basic and diluted earnings per share.  The Company applies the two-class method of computing earnings per share, which requires the calculation of separate earnings per share amounts for non-vested share-based awards and for common stock.  Non-vested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock.  Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses.  The non-vested share-based payment awards are not allocated losses as the awards do not have a contractual obligation to share in the losses of the Company.

Summit Hotel Properties, Inc.
	For the three months ended						For the six months ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Numerator:
Income from continuing operations	$	670,549		$	384,273		$	(1,017,319	)	$	(1,254,825	)
Less:   preferred dividend requirements		(1,156,250	)		-			(2,312,500	)		-
noncontrolling interest adjustments		88,259			(103,707	)		859,590			338,855
allocation to participating securities		(12,390	)		-			(12,390	)		-
Net income (loss) attributable to common
shareholders before discontinued operations		(409,832	)		280,566			(2,482,619	)		(915,970	)
Net income (loss) attributable to common
shareholders from discontinued operations		(840,657	)		160,253			(1,658,602	)		178,480
Net income (loss) attributable to common
shareholders - basic and diluted	$	(1,250,489	)	$	440,819		$	(4,141,221	)	$	(737,490	)
Denominator:
Weighted average number of common
shares - basic and diluted		30,553,158			27,278,000			28,915,579			27,278,000
Earnings per Common Share - Basic and
Diluted:
Net income (loss) attributable to common
shareholders before discontinued operations	$	(0.01	)	$	0.01		$	(0.08	)	$	(0.04	)
Net income (loss) attributable to common
shareholders from discontinued operations		(0.03	)		0.01		$	(0.06	)		0.01
Net income (loss) attributable to common
shareholders	$	(0.04	)	$	0.02		$	(0.14	)	$	(0.03	)

Summit Hotel OP, LP
	For the three months ended					For the six months ended
	June 30, 2012			June 30, 2011		June 30, 2012			June 30, 2011
Numerator:
Income from continuing operations	$	670,549		$	384,273	$	(1,017,319	)	$	(1,254,825	)
Less:  preferred dividend requirements		(1,156,250	)		-		(2,312,500	)		-
Net income (loss) attributable to common
shareholders before discontinued operations		(485,701	)		384,273		(3,329,819	)		(1,254,825	)
Net income (loss) attributable to common
shareholders from discontinued operations		(1,027,340	)		219,588		(2,144,282	)		244,565
Net income (loss) attributable to common
shareholders - basic and diluted	$	(1,513,041	)	$	603,861	$	(5,474,101	)	$	(1,010,260	)
Denominator:
Weighted average number of common
shares - basic and diluted		37,383,096			37,378,000		37,380,548			37,378,000
Earnings per Common Share - Basic and
Diluted:
Net income (loss) attributable to common
shareholders before discontinued operations	$	(0.01	)	$	0.01	$	(0.09	)	$	(0.04	)
Net income (loss) attributable to common
shareholders from discontinued operations		(0.03	)		0.01	$	(0.06	)		0.01
Net income (loss) attributable to common
shareholders	$	(0.04	)	$	0.02	$	(0.15	)	$	(0.03	)

Diluted loss per share was the same as basic loss per share for the six months ended June 30, 2012 and 2011 as options to purchase 893,000 and 940,000 shares of common stock were anti-dilutive, respectively.