INN Summit Hotel Properties Inc

Issuer:

Summit Hotel Properties, Inc.

Security:

6.250 % Series E Cumulative Redeemable Preferred Stock (the “Series E Preferred Stock”)

Size:

6,400,000 shares

Trade Date:

November 2, 2017

Settlement Date:

November 13, 2017 (T+7). The Issuer expects that delivery of the Series E Preferred Stock will be made to investors on or about November 13, 2017, which will be the seventh business day following November 2, 2017 (such settlement being referred to as “T+7”). Under Rule 15c6-1 under the Exchange Act, trades in the secondary market are required to settle in two business days, unless the parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish to trade the Series E Preferred Stock on November 2, 2017 or the next four succeeding business days will be required, by virtue of the fact that the Series E Preferred Stock initially will settle in T+7, to specify an alternate settlement arrangement at the time of any such trade to prevent a failed settlement. Purchasers of the Series E Preferred Stock who wish to trade the Series E Preferred Stock on November 2, 2017 or the next four succeeding business days should consult their advisors.

Maturity:

Perpetual (unless redeemed by the Issuer on or after November 13, 2022 or pursuant to its special optional redemption right, repurchased by the Issuer in the open market or converted by an investor in connection with a Change of Control)

Public Offering Price:

$25.00 liquidation preference per share; $160,000,000 total

Underwriting Discount and Commissions:

$0.7875 per share; $5,040,000 total

Net Proceeds (before expenses):

$154,960,000

Dividend Rate:

6.250 % per annum (or $1.5625 per share per annum), accruing from (but excluding) November 13, 2017

Dividend Payment Dates:

On or about the last day of each February, May, August and November, commencing on November 30, 2017.  The first dividend payment will be for less than a full quarter and will cover the period from, but excluding, November 13, 2017 to, but excluding, November 30, 2017.

Liquidation Preference:

$25.00 per share, plus any accrued and unpaid dividends

Conversion Rights:

Except to the extent that the Issuer has elected to exercise its optional redemption right or its special optional redemption right by providing notice of redemption prior to the Change of Control Conversion Date, upon the occurrence of a Change of Control, the holders of the Series E Preferred Stock will have the right to convert some or all of their Series E Preferred Stock (the “Change of Control Conversion Right”) into a number of the Issuer’s shares of common stock, $0.01 par value per share, per share of their Series E Preferred Stock equal to the lesser of:

·                   the quotient obtained by dividing (i) the sum of the $25.00 liquidation preference plus the amount of any accrued and unpaid dividends to, but not including, the Change of Control Conversion Date (unless the Change of Control Conversion Date is after a record date for a Series E Preferred Stock dividend payment and prior to the corresponding Series E Preferred Share dividend payment date, in which case no additional amount for such accrued and unpaid dividend will be included in this sum) by (ii) the Common Stock Price; and

·                   3.1686 (the Share Cap), subject to certain adjustments and provisions for the receipt of alternative consideration as described in the preliminary prospectus supplement.

If the Issuer has provided or provides a redemption notice with respect to some or all of the Series E Preferred Stock, holders of any Series E Preferred Stock that the Issuer has called for redemption will not be permitted to exercise their Change of Control Conversion Right in respect of any of their shares of Series E Preferred Stock that have been called for redemption, and any Series E Preferred Stock subsequently called for redemption that has been tendered for conversion will be redeemed on the applicable date of redemption instead of converted on the Change of Control Conversion Date.

A “Change of Control” will be deemed to have occurred at such time after the original issuance of the Series E Preferred Stock when the following have occurred and are continuing:

·                   the acquisition by any person, including any syndicate or group deemed to be a “person” under Section 13(d)(3) of the Exchange Act, of beneficial ownership, directly or indirectly, through a purchase, merger or other acquisition transaction or series of purchases, mergers or other acquisition transactions of shares of the Issuer entitling that person to exercise more than 50% of the total voting power of all shares of the Issuer entitled to vote generally in elections of directors (except that such person will be deemed to have beneficial ownership of all securities that such person has the right to acquire, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition); and

·                   following the closing of any transaction referred to in the bullet point above, neither the Issuer nor the acquiring or surviving entity has a class of common securities (or ADRs representing such securities) listed on the NYSE, the NYSE American or Nasdaq, or listed or quoted on an exchange or quotation system that is a successor to the NYSE, the NYSE American or Nasdaq.

The “Common Stock Price” will be: (i) the amount of cash consideration per share of the Issuer’s common stock, if the consideration to be received in the Change of Control by the holders of shares of the Issuer’s common stock is solely cash; and (ii) the average of the closing prices for shares of the Issuer’s common stock on the NYSE for the ten consecutive trading days immediately preceding, but not including, the effective date of the Change of Control, if the consideration to be received in the Change of Control by the holders of shares of the Issuer’s common stock is other than solely cash.

The “Change of Control Conversion Date” will be a business day that is no fewer than 20 days nor more than 35 days after the date on which the Issuer provides the required notice of the occurrence of a Change of Control.

Optional Redemption:

On and after November 13, 2022, redeemable in whole or in part at a redemption price equal to $25.00 per share, plus any accrued and unpaid dividends (whether or not declared) to, but not including, the date of redemption. If the Issuer exercises its redemption right (by sending the required notice) in connection with a Change of Control, holders of the Series E Preferred Stock will not have the conversion rights described above in respect of any Series E Preferred Stock called for redemption.

Special Optional Redemption:

In the event of a Change of Control, the Issuer will have the option to redeem the Series E Preferred Stock, in whole or in part, within 120 days after the first date on which such Change of Control has occurred for cash at a redemption price of $25.00 per share, plus any accrued and unpaid dividends (whether or not declared) to, but not including, the redemption date. To the extent that the Issuer exercises its redemption right (by sending the required notice) relating to the Series E Preferred Stock, the holders of Series E Preferred Stock will not be permitted to exercise the conversion right described above in respect of their shares of Series E Preferred Stock called for redemption.

CUSIP / ISIN:

866082 605 / US8660826053

Listing:

The Issuer intends to file an application to list the Series E Preferred Stock with the NYSE under the symbol “INNPrE.” If the application is approved, trading is expected to begin within 30 days of initial delivery. The underwriters have advised the Issuer that they intend to make a market in the Series E Preferred Stock prior to the commencement of trading on the NYSE. The underwriters will have no obligation to make a market in the shares, however, and may cease market making activities, if commenced, at any time.

Joint Book-Running Managers:

Merrill Lynch, Pierce, Fenner & Smith

Incorporated

Robert W. Baird & Co. Incorporated

Raymond James & Associates, Inc.

RBC Capital Markets, LLC

Senior Co-Managers:

Deutsche Bank Securities Inc.

Jefferies LLC

KeyBanc Capital Markets Inc.