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 nine months ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Numerator:
Income from continuing operations	$	1,588,960		$	(364,727	)	$	529,638		$	(1,656,880	)
Less: preferred dividend requirements		(1,156,250	)		-			(3,468,750	)		-
noncontrolling interest adjustments		(70,051	)		98,563			846,077			447,503
allocation to participating securities		-			-			(24,780	)		-
Net income (loss) attributable to common
shareholders from continuing operations		362,659			(266,164	)		(2,117,815	)		(1,209,377	)
Net income (loss) attributable to common
shareholders from discontinued operations		43,469			296,402			(1,629,668	)		502,125
Net income (loss) attributable to common
shareholders - basic and diluted	$	406,128		$	30,238		$	(3,747,483	)	$	(707,252	)

Denominator:
Weighted average number of common
shares - basic		31,308,480			27,278,000			29,713,213			27,278,000
- diluted		31,501,219			27,278,000			29,713,213			27,278,000

Earnings per Common Share - Basic and
Diluted:
Net income (loss) attributable to common
shareholders from continuing operations	$	0.01		$	(0.01	)	$	(0.08	)	$	(0.05	)
Net income (loss) attributable to common
shareholders from discontinued operations		0.00			0.01		$	(0.05	)		0.02
Net income (loss) attributable to common
shareholders	$	0.01		$	0.00		$	(0.13	)	$	(0.03	)

As of September 30, 2012 and 2011, we had 893,000 and 940,000 stock options outstanding, respectively, which were not included in the computation of diluted earnings per share, as the options’ exercise price was greater than the average market price of the common shares.


Summit Hotel OP, LP
	For the three months ended						For the nine months ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Numerator:
Income from continuing operations	$	1,588,960		$	(364,727	)	$	529,638		$	(1,656,880	)
Less: preferred dividend requirements		(1,156,250	)		-			(3,468,750	)		-
Net income (loss) attributable to common
shareholders from continuing operations		432,710			(364,727	)		(2,939,112	)		(1,656,880	)
Net income (loss) attributable to common
shareholders from discontinued operations		51,866			406,149			(2,050,413	)		688,042
Net income (loss) attributable to common
shareholders - basic and diluted	$	484,576		$	41,422		$	(4,989,525	)	$	(968,838	)

Denominator:
Weighted average number of common
shares - basic		37,393,288			37,378,000			37,384,795			37,378,000
- diluted		37,586,027			37,378,000			37,384,795			37,378,000

Earnings per Common Share - Basic and
Diluted:
Net income (loss) attributable to common
shareholders from continuing operations	$	0.01		$	(0.01	)	$	(0.08	)	$	(0.05	)
Net income (loss) attributable to common
shareholders from discontinued operations		0.00			0.01		$	(0.05	)		0.02
Net income (loss) attributable to common
shareholders	$	0.01		$	0.00		$	(0.13	)	$	(0.03	)