FIRST MODIFICATION OF LOAN AGREEMENT

Exhibit 10.17

FIRST MODIFICATION OF LOAN AGREEMENT

     THIS FIRST MODIFICATION OF LOAN AGREEMENT is made and entered into on April 24, 2007 by and between SUMMIT HOTEL PROPERTIES, LLC, a South Dakota limited liability company (“Borrower”), and ING LIFE INSURANCE AND ANNUITY COMPANY, a Connecticut corporation (“Lender”).

WITNESSETH:

     WHEREAS, Borrower and Lender entered into that certain Loan Agreement dated June 15, 2006 (the “Loan Agreement”);

     WHEREAS, Borrower and Lender desire to amend the Loan Agreement as hereinafter set forth;

     NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants herein contained and TEN AND NO/100 DOLLARS ($10.00), and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, Borrower and Lender, intending to be legally bound, agree that the Loan Agreement is modified as follows:

1. The Loan Agreement is hereby modified to delete the chart appearing in Section 3.07(i) in its entirety and insert in its place the following:

						PRINCIPAL				ALLOCATION				RELEASE
				PROPERTY		ALLOCATION				PERCENTAGE				FACTOR
	(1	)		Fairfield Inn		$	2,637,900				7.21	%			110	%
				0000 Xxxxxx Xxxxxxxx Xxxx Xxxxx
	(2	)		Comfort Inn		$	3,312,900				9.05	%			110	%
				0000 Xxxxxxx Xxxx
	(3	)		Hampton Inn		$	5,632,900				15.39	%			120	%
				0000 Xxxx Xxxxxxxxx Xxxx.
	(4	)		Courtyard by Marriott		$	5,709,900				15.60	%			125	%
				4559 North Reserve St.
	(5	)		Comfort Inn		$	2,345,900				6.41	%			110	%
				0000 Xxxxx Xxxxxxx Xx.
	(6	)		Hawthorn Suites		$	5,607,900				15.32	%			120	%
				000 Xxxxx Xxxxxxxx Xxxx.
	(7	)		Hampton Inn		$	5,862,900				16.02	%			125	%
				0000 Xxxx Xxxxxxxx Xx.
	(8	)		Comfort Suites		$	2,894,900				7.91	%			120	%
				10680 South Automall Dr.
	(9	)		Fairfield Inn		$	2,595,600				7.09	%			125	%
				0000 Xxxx Xxxxx Xxxxx
TOTAL						$	36,600,800				100.00	%

[FIRST MODIFICATION OF LOAN AGREEMENT]
ING No. 27924

2.		The Loan Agreement is hereby further modified by deleting the address “2303 North Fourth” appearing in Section 3.07(ii) and replacing it with the address “1680 Xxxxxx Business Park Court”.
3.		Borrower acknowledges that Lender has permitted one Substitution (as that term is defined in the Loan Agreement) on even date herewith. Accordingly Section 3.08(e) of the Loan Agreement is hereby modified such that from and after the date hereof Borrower shall not be permitted to request and close more than a total of two (2) additional Substitutions during the Loan term.
4.		Except as expressly modified hereby, the Loan Agreement shall remain in full force and effect, Borrower and Lender hereby ratifying and affirming the same.

[SIGNATURES BEGIN ON FOLLOWING PAGE]

[FIRST MODIFICATION OF LOAN AGREEMENT]
ING No. 27924

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     IN WITNESS WHEREOF, the parties hereto have caused this First Modification to be executed as of the day and year first above-written.

	BORROWER: SUMMIT HOTEL PROPERTIES, LLC, a South Dakota limited liability company
	By:	/s/ Xxxxxxxxxxx X. Xxxxx
		Xxxxxxxxxxx X. Xxxxx,
		Chief Financial Officer

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

[FIRST MODIFICATION OF LOAN AGREEMENT]
ING No. 27924

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[SIGNATURES CONTINUED FROM PRECEDING PAGE]

	LENDER: ING LIFE INSURANCE AND ANNUITY COMPANY, a Georgia corporation
	By:	ING Investment Management LLC, as Authorized Agent

	By:	/s/ Xxxxxxx X. Xxxxxxx
		Name:	Xxxxxxx X. Xxxxxxx
		Title:	Vice President

[FIRST MODIFICATION OF LOAN AGREEMENT]
ING No. 27924

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