SOURCE: Supertel Hospitality, Inc.

September 02, 2005 17:51 ET

Supertel Hospitality, Inc. Increases Third Quarter 2005 Dividend Payment 17 Percent to $0.07 and Closes Acquisition of Sleep Inn Hotel

NORFOLK, NE -- (MARKET WIRE) -- September 2, 2005 -- Supertel Hospitality, Inc. (NASDAQ: SPPR), a self-administered real estate investment trust, today announced that its Board of Directors has declared a cash dividend payment for the third quarter of 2005.

A dividend payment of $.07 per share, for shareholders of record as of September 30, 2005, will be distributed on October 31, 2005. This represents an increase of $0.01 per share, or 16.7 percent, over that of the first two quarters of 2005.

Separately, the Company announced it finalized the acquisition of the 90-room Sleep Inn and Suites hotel located in Omaha, Nebraska. "We are pleased to add this property to our Omaha portfolio, which already includes three Super 8 Hotels," said Paul J. Schulte, Chairman, President and CEO of Supertel Hospitality, Inc. The Sleep Inn has an excellent reputation and convenient location for airport and convention business. The Sleep Inn and Suites is located at 2525 Abbott Drive. The three Super 8 Hotels are located at 114th and Dodge Streets, 72nd and Spring Streets, and 108th and M Streets.

Supertel Hospitality, Inc. specializes in limited-service lodging. The Company owns 70 hotels in 16 mid-western and eastern states.

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.

Contact Information

    Supertel Hospitality, Inc.

    Paul J. Schulte


    Donavon A. Heimes