SOURCE: Supertel Hospitality, Inc.

August 29, 2006 12:02 ET

Supertel Hospitality, Inc. Completes the Purchase of Six Extended Stay Hotels and Increases Third Quarter Dividend to $.10 1/2 per Common Share

Supertel Hospitality Now Offers Accommodations for Business and Leisure Travelers in 19 States

NORFOLK, NE -- (MARKET WIRE) -- August 29, 2006 --Supertel Hospitality, Inc. (NASDAQ: SPPR), a self-administered real estate investment trust, announced that its operating partnership has purchased six hotels from affiliated entities of Savannah Suites. The hotels are located in Augusta, Chamblee, Jonesboro, Savannah and Stone Mountain, Georgia and Greenville, South Carolina. The purchase of another hotel located in Atlanta, Georgia is expected to be completed on November 16, 2006.

On August 23, 2006, the Board of Directors declared a dividend for the third quarter of $.10 1/2 per share of common stock payable October 31, 2006 to shareholders of record on September 30, 2006. This is an increase of 1/2 cent from the $.10 dividend for the second quarter of 2006 and an increase of 3 1/2 cents from the $.07 dividend for the third quarter of 2005.

"These six Savannah Suites hotels, with a total of 934 rooms, present a great opportunity for Supertel to add clean, friendly and affordable extended stay facilities for business and leisure travelers to our portfolio. This acquisition allows us to enter the South Carolina and Georgia market. Supertel Hospitality now owns hotels in 19 Midwestern and Eastern states which represents more than 6,500 rooms. The extended stay lodging segment is expanding as a stay of choice for many travelers and we believe adding these facilities to our portfolio will strengthen our overall position in the limited service sector of the hospitality lodging industry and increase shareholder value," said Paul J. Schulte, chairman, president and chief executive officer of Supertel Hospitality, Inc.

"Supertel Hospitality has had the opportunity to acquire sixteen hotels during the past year which meets our goal of conservative growth. The acquisitions together with the operating results of our properties owned for more than 12 months has allowed us to share our increased cash flow with our shareholders," he added. Supertel Hospitality, Inc. now owns 85 hotels in 19 Midwestern and Eastern states. The newly acquired six hotels will continue to be operated under the name of Savannah Suites. The balance of Supertel's hotel portfolio includes Super 8, Supertel Inn, Comfort Inn/Comfort Suites, Hampton Inn, Holiday Inn Express, Suites at Key Largo, Days Inn, Ramada Limited, Guest House Inn and Sleep Inn. This diversity enables Supertel to participate in the best practices of each of these respected hospitality partners.

Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These risks are discussed in the Company's filings with the Securities and Exchange Commission.

Although the Company believes the expectations reflected in these forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. The forward-looking statements are made as of the date of this press release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact Information

  • CONTACT:
    Supertel Hospitality, Inc.
    Donavon A. Heimes
    402.371.2520