UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): January 28,
2011
SUMMIT
HOTEL PROPERTIES, LLC
(Exact
name of registrant as specified in its charter)
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South
Dakota
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000-51955
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20-0617340
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(State
or other jurisdiction
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(Commission
File Number)
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(I.R.S.
employer identification no.)
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of
incorporation or organization)
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2701
South Minnesota Avenue, Suite 6, Sioux Falls, South Dakota 57105
(Address
of principal executive offices, including zip code)
Registrant’s
Telephone Number, Including Area Code: (605)
361-9566
Not
Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
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o
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item
2.02. Results of Operations and Financial Condition.
On
January 28, 2011, Summit Hotel Properties, LLC (“Company”) released certain
operating information for the three months and year ended December 31,
2010. The comparative information for the three months and year ended
December 31, 2009 and December 31, 2010 for all Company seasoned and unseasoned
hotels and our aggregate portfolio, is set forth in the table
below.
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Year
Ended
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Three
Months Ended
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|||||||||||||||||||||||
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December
31,
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Percentage
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December
31,
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Percentage
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|||||||||||||||||||||
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2010
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2009
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Change
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2010
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2009
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Change
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Seasoned Hotels (46
hotels):
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||||||||||||||||||||||||
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Occupancy
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64.1 | % | 64.8 | % | (1.1 | )% | 57.2 | % | 59.2 | % | (3.4 | )% | ||||||||||||
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ADR
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$ | 87.75 | $ | 87.42 | 0.4 | % | $ | 87.00 | $ | 83.63 | 4.0 | % | ||||||||||||
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RevPAR
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$ | 56.22 | $ | 56.63 | (0.7 | )% | $ | 49.73 | $ | 49.49 | 0.5 | % | ||||||||||||
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Unseasoned Hotels (19
hotels):
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||||||||||||||||||||||||
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Occupancy
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63.1 | % | 55.3 | % | 14.0 | % | 59.5 | % | 49.7 | % | 19.7 | % | ||||||||||||
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ADR
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$ | 87.29 | $ | 87.58 | (0.3 | )% | $ | 85.99 | $ | 85.37 | 0.7 | % | ||||||||||||
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RevPAR
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$ | 55.06 | $ | 48.47 | 13.6 | % | $ | 51.14 | $ | 42.45 | 20.5 | % | ||||||||||||
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Aggregate Portfolio
(65
hotels):
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||||||||||||||||||||||||
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Occupancy
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63.7 | % | 61.9 | % | 2.9 | % | 58.0 | % | 55.8 | % | 3.9 | % | ||||||||||||
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ADR
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$ | 87.59 | $ | 87.40 | 0.2 | % | $ | 86.63 | $ | 84.17 | 2.9 | % | ||||||||||||
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RevPAR
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$ | 55.80 | $ | 54.12 | 3.1 | % | $ | 50.24 | $ | 47.01 | 6.9 | % | ||||||||||||
We expect
to record in the fourth quarter of 2010 an impairment charge of between
approximately $6.0 million and approximately $7.0 million related to land held
for sale shown on our unaudited condensed consolidated balance sheet as of
September 30, 2010.
The
Company’s accounting and financial reporting processes necessary to finalize our
consolidated financial statements for the year ended December 31, 2010 are not
yet complete, thus the information shown in the table above has been prepared in
good faith based on our internal accounting records. However, our
anticipated RevPAR for the three months and year ended December 31, 2010 is
derived from our anticipated room revenue for the three months and year ended
December 31, 2010, an amount that has not been audited or reviewed by KPMG
LLP. Our revenues and our anticipated estimated impairment charge are
subject to revision based on the completion of the accounting and financial
reporting processes necessary to finalize our consolidated financial statements
as of and for the year ended December 31, 2010. KPMG LLP has not
audited, reviewed, compiled or performed any procedures with respect to our
anticipated revenues, our anticipated RevPAR for the three months or year ended
December 31, 2010 or our estimated impairment charge. Accordingly,
KPMG LLP does not express an opinion or any other form of assurance with respect
to that information. We cannot assure you that, upon completion of
such accounting and financial reporting processes and finalizing the audited
financial statements as of and for the year ended December 31, 2010, we will not
report RevPAR based on our room revenues for the three months and year ended
December 31, 2010 or an impairment charge materially different than as set forth
above.
The key
indicators in the table shown above are not prepared in accordance with
GAAP. We use this information to measure the performance of
individual hotels, groups of hotels and/or our business as a
whole. The key indicators listed above include: occupancy rate (or
occupancy); Average Daily Rate (or ADR); and room Revenue per Available Room (or
RevPAR).
Occupancy,
ADR and RevPAR are commonly used measures within the hotel industry to evaluate
operating performance. RevPAR, which is calculated as the product of ADR and
occupancy, is an important statistic for monitoring operating performance at the
individual hotel level and across our business as a whole. We
evaluate individual hotel RevPAR performance on an absolute basis with
comparisons to budget and prior periods, as well as on a company-wide and
regional basis. ADR and RevPAR include only room revenue. Room
revenue depends on demand, as measured by occupancy, pricing, as measured by
ADR, and our available supply of hotel rooms. Our ADR, occupancy and
RevPAR performance may be impacted by macroeconomic factors such as regional and
local employment growth, personal income and corporate earnings, office vacancy
rates and business relocation decisions, airport and other business and leisure
travel, new hotel construction and the pricing strategies of
competitors. In addition, our ADR, occupancy and RevPAR performance
is dependent on the continued success of our franchisors and their
brands.
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly
authorized.
| SUMMIT HOTEL PROPERTIES, LLC | |||
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By:
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/s/ Kerry W. Boekelheide | |
| Name: Kerry W. Boekelheide | |||
| Title: Chief Executive Officer | |||
Dated: January
28, 2011