SOURCE: Supertel Hospitality, Inc.

Supertel Hospitality, Inc.

November 09, 2009 18:42 ET

Supertel Hospitality Reports 2009 Third Quarter Results

NORFOLK, NE--(Marketwire - November 9, 2009) - Supertel Hospitality, Inc. (NASDAQ: SPPR), a real estate investment trust (REIT) which owns 115 hotels in 23 states, today announced results for the third quarter ended September 30, 2009.

Revenues from continuing operations for the 2009 third quarter declined 11.7 percent to $28.2 million, compared to the 2008 third quarter. Net loss attributable to common shareholders in the 2009 third quarter was $(1.4) million, or $(0.06) per diluted share, compared to $1.7 million, or $0.08 per diluted share, in the 2008 third quarter. The 2009 third quarter loss included an aggregate $693,000 impairment charge for hotels held for sale, compared to no impairment charges recorded in the 2008 like period.

Funds from operations (FFO) in the 2009 third quarter was $2.1 million, or $0.09 per diluted share, compared to $5.5 million, or $0.26 per diluted share, in the 2008 third quarter. Adjusted earnings before interest, taxes, depreciation and amortization, noncontrolling interest and preferred stock dividends (Adjusted EBITDA) decreased 43.1 percent to $5.5 million, compared to the 2008 third quarter.

Third Quarter Highlights

--  Continued to outperform the hotel industry in revenue per available
    room (RevPAR) with a decline of 11.6 percent, compared to an industry-wide
    decline of 16.9 percent, according to Smith Travel Research data.
--  Completed the disposition of four hotels, generating approximately
    $3.3 million of net cash after direct debt repayments. Sold two additional
    hotels following the close of the quarter.
    

Operating Results

"We continue to experience a very difficult operating environment, as is the rest of the hotel industry," said Kelly A. Walters, Supertel's president and chief executive officer. "Our strategy of concentrating on the limited-service segment due to its historically lower volatility was effective, as our portfolio's third quarter RevPAR declined 11.6 percent, compared to 16.9 percent for the industry as a whole, according to Smith Travel Research (STR) data."

The majority of the RevPAR decline was a result of a 7.0 percent drop in occupancy, while average daily rate (ADR) was off 5.0 percent. Industry occupancy and ADR fell 7.9 percent and 9.8 percent, respectively.

"We are seeing continuing signs that the decline in RevPAR is beginning to moderate somewhat," he noted. "Our third quarter downturn was less than the second quarter. However, we are still closely tied to the economy and until it gets healthier, producing positive RevPAR numbers will continue to be a challenge. We are still in the very early stages of a slowing in the downward trend and agree with industry consultants that it will be at least until the 2010 second half before we get any meaningful traction, as the industry historically lags a rebound in the economy by some six months."

Walters commented that the company's newly reorganized senior management team stepped up appropriately to the ever-increasing challenges it faces as asset managers in this environment. "We are working closely with our operators to find the right balance between cutting costs and continuing to provide the proper levels of service and value to our guests."

The company outperformed both the industry and its respective segments in RevPAR, according to STR data. For the company's 77 same store economy hotels, which account for about two-thirds of the same store portfolio, RevPAR was off 11.1 percent, compared to a 15.9 percent decline for the economy hotels, according to STR. ADR declined 3.7 percent, and occupancy was off 7.7 percent. RevPAR for the company's 29 same store midscale without food and beverage properties declined 14.1 percent, compared to a 15.5 percent decline for such properties, according to STR, with ADR down 6.6 percent and occupancy off 8.1 percent. The company's eight extended stay properties reported a 2.2 percent decline in RevPAR, as occupancy remained essentially flat at 62.6 percent and ADR was off 1.8 percent.

Revenues from continuing operations for the 2009 third quarter decreased $3.7 million, or 11.7 percent, to $28.2 million, compared to the 2008 third quarter. Lower occupancy and ADR were attributable to the continuation of unfavorable economic conditions. Hotel and property operations expense from continuing operations for the 2009 third quarter decreased $1.0 million, or 4.6 percent, to $21.3 million, compared to the 2008 third quarter. The decline resulted primarily from lower occupancy levels, with payroll expense down $0.3 million, hotel-franchise-related expenses down $0.3 million, management fees down $0.2 million, utilities expense down $0.1 million and miscellaneous expenses down $0.1 million.

Interest expense from continuing operations, which includes several one-time pre-payment penalties incurred as a result of the company's debt reduction efforts, and depreciation and amortization expense from continuing operations both remained relatively flat, compared to the same period a year earlier. Due to a one-time restructuring charge associated with a re-organization within the REIT's staff, the general and administrative expense increased $0.2 million from the year ago period.

Property operating income (POI), defined as revenue from room rentals and other hotel services less hotel and property operating expenses, decreased $2.7 million from the year-ago period to $6.9 million. "The key remains striking the proper balance between cost cutting and attracting and retaining guests," he noted. "Strategically, we simply cannot afford to disappoint customers by failing to continue to provide safe, clean rooms and guest friendly service at a competitive rate. We not only need customers for today, we need to make sure that they will return when the economy rebounds."

Dispositions

During the quarter, the company sold four hotels. The company took a $760,000 impairment charge on two hotels, which was partially offset by a $67,000 recapture of previously recorded impairment related to the gain on the sale of two hotels.

Through the end of the third quarter, the company has sold six hotels for approximately $12 million with a net gain of $1.2 million. The sale of the six hotels generated approximately $5.4 million of net cash after direct debt repayments. Approximately $2.4 million of the $5.4 million was used to pay down additional GE Capital debt with the remainder applied to the company's revolving line of credit.

Properties sold in the 2009 third quarter were:
-- Masters Inn, 116 rooms, Kissimmee, Fla., $1.6 million
-- Masters Inn, 120 rooms, Orlando, Fla., $3.6 million
-- Comfort Inn, 63 rooms, Ellsworth, Maine, $2.2 million
-- Super 8, 35 rooms, Anamosa, Iowa, $0.85 million.

Following the end of the 2009 third quarter, the company sold two
additional properties:
-- Comfort Inn, 59 rooms, Dahlgren, Va., $3.5 million
-- Masters Inn, 187 rooms, Kissimmee, Fla., $1.7 million

In October the company classified an additional three properties as held for sale.

"We currently have four hotels listed as held for sale," Walters said. "We continue to evaluate our portfolio and periodically will sell, upgrade or reflag certain assets to improve the strength and returns of our portfolio. We have received solid valuations for our properties, despite poor current market conditions. We have benefited from the fact that these assets are priced at levels under $10 million, asset levels for which attractive financing may still be obtained from local or regional banks. We are not selling at 'fire sale' prices. Our focus has been, and will continue to be, on selling some of our older properties to reduce the average age of our portfolio and to retain those assets that we believe will provide the highest possible return on a risk-adjusted basis over a sustained period."

Balance Sheet

The company continues to take positive steps to strengthen its balance sheet through paying down debt and refinancing or extending debt with pending maturities. Year to date, the company has paid down or refinanced $24.9 million of debt.

"On September 28, 2009, our Wells Fargo Bank credit facility of $9.0 million maturing on the same date was extended to November 12, 2009," Walters said. "We are negotiating with Wells Fargo to extend the maturity another six months.

"The loan-to-value ratio on this near-term obligation is conservative, even in the context of today's market," he added. "While the credit markets remain very tight and lenders remain very cautious, we believe that we will successfully procure attractive intermediate-term replacement debt prior to the new extended maturity. Once we complete this last near-term debt refinancing, we will not have another major debt maturity until 2011."

Dividend

The company did not declare a common stock dividend for the 2009 third quarter. The company will monitor requirements to maintain its REIT status and will regularly evaluate the dividend policy.

Outlook

"It remains a difficult economy and travel levels continue to be down meaningfully from the prior year," Walters said. "Preliminary results for October continue to show a slight slowing of the downward arc in RevPAR. However, it is too early and not significant enough to call it a reversal. Nonetheless, the signs provide us with some optimism.

"We also are encouraged that the development pipeline continues to drop off sharply, bringing less new competition to the marketplace," he commented. "This will not only help for the short-term, but into the expected rebound, as well, which should help us recover room rates and occupancy more quickly.

"We are clearly focused on the short-term operations of our properties but are looking ahead and putting plans together to respond to the growth opportunities that we believe will become available as the economy recovers."

About Supertel Hospitality, Inc.

As of November 9, 2009, Supertel Hospitality, Inc. (NASDAQ: SPPR) owns 115 hotels comprised of 10,028 rooms in 23 states. The company's hotel portfolio includes Super 8, Comfort Inn/Comfort Suites, Hampton Inn, Holiday Inn Express, Supertel Inn, Days Inn, Ramada Limited, Guest House Inn, Sleep Inn, Savannah Suites, Masters Inn, Key West Inn and Baymont Inn. This diversity enables the company to participate in the best practices of each of these respected hospitality partners. The company specializes in limited-service hotels, which do not normally offer food and beverage service. For more information or to make a hotel reservation, visit www.supertelinc.com.

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.

SELECTED FINANCIAL DATA:

The following table sets forth the company's balance sheet as of September 30, 2009 and December 31, 2008. The company owned 117 hotels (including three hotels held for sale) at September 30, 2009 and owned 123 hotels at December 31, 2008, (in thousands, except share data).

                                                          As of
                                               September 30,  December 31,
                                                    2009          2008
                                                ------------  ------------
                                                (unaudited)

ASSETS
  Investments in hotel properties               $    379,583  $    377,814
  Less accumulated depreciation                       91,501        81,383
                                                ------------  ------------
                                                     288,082       296,431

  Cash and cash equivalents                              413           712
  Accounts receivable                                  2,652         2,401
  Prepaid expenses and other assets                    5,085         2,903
  Deferred financing costs, net                        1,336         1,580
  Investment in hotel properties, held for sale,
   net                                                 6,306        17,450
                                                ------------  ------------
                                                $    303,874  $    321,477
                                                ============  ============

LIABILITIES AND EQUITY
LIABILITIES
  Accounts payable, accrued expenses and other
   liabilities                                  $     12,218  $     13,697
  Mandatorily redeemable preferred
   noncontrolling interest
   in consolidated partnership                         1,268             -
  Debt related to hotel properties held for sale       3,986        12,665
  Long-term debt                                     186,039       190,141
                                                ------------  ------------
                                                     203,511       216,503
                                                ------------  ------------

  Redeemable preferred noncontrolling interest
   in consolidated partnership, at redemption
   value                                                 510         1,778

  Redeemable preferred stock
    Series B, 800,000 shares authorized; $.01 par
     value, 332,500 shares outstanding, liquidation
     preference of $8,312                              7,662         7,662

EQUITY
Shareholders' equity
  Preferred stock, 40,000,000 shares
   authorized; Series A, 2,500,000 shares
   authorized, $.01 par value, 803,270 shares
   outstanding, liquidation preference of $8,033           8             8
  Common stock, $.01 par value, 100,000,000
   shares authorized; 21,880,017 and 20,924,677
   shares outstanding.                                   219           209
  Additional paid-in capital                         119,693       112,804
  Distributions in excess of retained earnings       (28,768)      (25,551)
                                                ------------  ------------
    Total shareholders' equity                        91,152        87,470
Noncontrolling interest
  Noncontrolling interest in consolidated
   partnership, redemption value $603 and $2,101       1,039         8,064

                                                ------------  ------------
    Total equity                                      92,191        95,534
                                                ------------  ------------

COMMITMENTS AND CONTINGENCIES
                                                $    303,874  $    321,477
                                                ============  ============

The following table sets forth the Company's unaudited results of operations for the three and nine months ended September 30, 2009 and 2008, respectively (in thousands, except per share data).

                                    Three Months Ended  Nine Months Ended
                                      September 30,       September 30,
                                    ------------------  ------------------
                                      2009      2008      2009      2008
                                    --------  --------  --------  --------
REVENUES
  Room rentals and other hotel
   services                         $ 28,206  $ 31,937  $ 78,915  $ 88,971
                                    --------  --------  --------  --------

EXPENSES
  Hotel and property operations       21,299    22,315    59,626    63,466
  Depreciation and amortization        3,549     3,517    10,677    10,217
  General and administrative           1,120       954     3,138     2,949
                                    --------  --------  --------  --------
                                      25,968    26,786    73,441    76,632
                                    --------  --------  --------  --------

EARNINGS BEFORE NET GAIN (LOSS)
 ON DISPOSITIONS OF ASSETS, OTHER
 INCOME, INTEREST EXPENSE AND
 INCOME TAXES                          2,238     5,151     5,474    12,339

Net gain (loss) on dispositions of
 assets                                  (43)       (1)     (159)        -
Other income                              28        28       100        91
Interest expense                      (3,079)   (3,114)   (9,154)   (9,671)
                                    --------  --------  --------  --------

INCOME (LOSS) FROM CONTINUING
 OPERATIONS BEFORE INCOME TAXES         (856)    2,064    (3,739)    2,759

Income tax (expense) benefit             463      (158)    1,445       175
                                    --------  --------  --------  --------

INCOME (LOSS) FROM CONTINUING
 OPERATIONS                             (393)    1,906    (2,294)    2,934

Earnings (loss) from discontinued
 operations                             (616)      357       203       741
                                    --------  --------  --------  --------

NET INCOME (LOSS)                     (1,009)    2,263    (2,091)    3,675

Noncontrolling interest                  (38)     (175)      (21)     (356)
                                    --------  --------  --------  --------

NET INCOME (LOSS) ATTRIBUTABLE TO
 CONTROLLING INTERESTS                (1,047)    2,088    (2,112)    3,319

Preferred stock dividends               (368)     (369)   (1,105)     (792)
                                    --------  --------  --------  --------

NET INCOME (LOSS) ATTRIBUTABLE
 TO COMMON SHAREHOLDERS             $ (1,415) $  1,719  $ (3,217) $  2,527
                                    ========  ========  ========  ========

NET EARNINGS (LOSS) PER COMMON
 SHARE - BASIC AND DILUTED
EPS from continuing operations      $  (0.03) $   0.06  $  (0.16) $   0.09
                                    ========  ========  ========  ========
EPS from discontinued operations    $  (0.03) $   0.02  $   0.01  $   0.03
                                    ========  ========  ========  ========
EPS Basic and Diluted               $  (0.06) $   0.08  $  (0.15) $   0.12
                                    ========  ========  ========  ========




RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Unaudited - In thousands, except per share data:

                                       Three months         Nine months
                                    ended September 30, ended September 30,
                                      2009      2008      2009      2008
                                    --------  --------- --------  ---------
Weighted average shares outstanding
 for:
  calculation of earnings per
   share - basic                      21,880     20,906   21,542     20,811
                                    ========  ========= ========  =========
  calculation of earnings per
   share - diluted                    21,880     20,906   21,542     20,812
                                    ========  ========= ========  =========

Weighted average shares outstanding
 for:
  calculation of FFO per share -
   basic                              21,880     20,906   21,542     20,811
                                    ========  ========= ========  =========
  calculation of FFO per share -
   diluted                            21,880     22,346   21,542     22,346
                                    ========  ========= ========  =========

Reconciliation of Weighted average
 number of shares for EPS diluted to
 FFO per share diluted:
EPS diluted shares                    21,880     20,906   21,542     20,812
Common stock issuable upon exercise
 or conversion of:
  Options                                  -          -        -          -
  Series A Preferred Stock                 -      1,440        -      1,534
                                    --------  --------- --------  ---------
FFO per share diluted shares          21,880     22,346   21,542     22,346
                                    ========  ========= ========  =========

Reconciliation of net income (loss)
 to FFO
Net income (loss) attributable to
 common shareholders                $ (1,415) $   1,719 $ (3,217) $   2,527
Depreciation and amortization          3,559      3,826   10,870     11,146
Net (gain) loss on disposition of
 assets                                  (83)         3   (1,047)         2
                                    --------  --------- --------  ---------
FFO available to common
 shareholders                       $  2,061  $   5,548 $  6,606  $  13,675
                                    ========  ========= ========  =========

FFO per share - basic               $   0.09  $    0.27 $   0.31  $    0.66
                                    ========  ========= ========  =========
FFO per share - diluted             $   0.09  $    0.26 $   0.31  $    0.64
                                    ========  ========= ========  =========

FFO is a non-GAAP financial measure. We consider FFO to be a market accepted measure of an equity REIT's operating performance, which is necessary, along with net earnings (loss), for an understanding of our operating results. FFO, as defined under the National Association of Real Estate Investment Trusts (NAREIT) standards, consists of net income computed in accordance with GAAP, excluding gains (or losses) from sales of real estate assets, plus depreciation and amortization of real estate assets. We believe our method of calculating FFO complies with the NAREIT definition. FFO does not represent amounts available for management's discretionary use because of needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties. FFO should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. All REITs do not calculate FFO in the same manner; therefore, our calculation may not be the same as the calculation of FFO for similar REITs.

We use FFO as a performance measure to facilitate a periodic evaluation of our operating results relative to those of our peers, who, like us, are typically members of NAREIT. We consider FFO a useful additional measure of performance for an equity REIT because it facilitates an understanding of the operating performance of our properties without giving effect to real estate depreciation and amortization, which assume that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, we believe that FFO provides a meaningful indication of our performance.

Unaudited-In thousands, except
 statistical data:                     Three months         Nine months
                                    ended September 30, ended September 30,
                                      2009      2008      2009      2008
                                    --------  --------- --------  --------
RECONCILIATION OF NET INCOME (LOSS)
 TO ADJUSTED EBITDA
Net income (loss) attributable to
 common shareholders                $ (1,415) $   1,719 $ (3,217) $  2,527
Interest expense, including disc
 ops                                   3,377      3,371    9,783    10,472
Income tax (benefit) expense,
 including disc ops                     (448)       175   (1,506)     (189)
Depreciation and amortization,
 including disc ops                    3,559      3,826   10,870    11,146
                                    --------  --------- --------  --------
  EBITDA                               5,073      9,091   15,930    23,956
Noncontrolling interest                   38        175       21       356
Preferred stock dividend                 368        369    1,105       792
                                    --------  --------- --------  --------
  ADJUSTED EBITDA                   $  5,479  $   9,635 $ 17,056  $ 25,104
                                    ========  ========= ========  ========

Adjusted EBITDA is a financial measure that is not calculated in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We calculate Adjusted EBITDA by adding back to net earnings (loss) available to common shareholders certain non-operating expenses and non-cash charges which are based on historical cost accounting and we believe may be of limited significance in evaluating current performance. We believe these adjustments can help eliminate the accounting effects of depreciation and amortization and financing decisions and facilitate comparisons of core operating profitability between periods, even though Adjusted EBITDA also does not represent an amount that accrues directly to common shareholders. In calculating Adjusted EBITDA, we also add back preferred stock dividends and noncontrolling interests, which are cash charges.

Adjusted EBITDA doesn't represent cash generated from operating activities determined by GAAP and should not be considered as an alternative to net income, cash flow from operations or any other operating performance measure prescribed by GAAP. Adjusted EBITDA is not a measure of our liquidity, nor is Adjusted EBITDA indicative of funds available to fund our cash needs, including our ability to make cash distributions. Neither does the measurement reflect cash expenditures for long-term assets and other items that have been and will be incurred. Adjusted EBITDA may include funds that may not be available for management's discretionary use due to functional requirements to conserve funds for capital expenditures, property acquisitions, and other commitments and uncertainties. To compensate for this, management considers the impact of these excluded items to the extent they are material to operating decisions or the evaluation of our operating performance. Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies.

The following table sets forth the statistics of the Company's same store continuing operations hotel properties for the three and nine months ended September, 2009 and 2008, respectively.

Unaudited-In thousands, except
 statistical data:                        Three months      Nine months
                                             ended             ended
                                          September 30,     September 30,
                                          2009     2008     2009     2008
                                        -------  -------  -------  -------
Same Store:
    Revenue per available room
     (RevPAR):
         Midscale w/o F&B               $ 42.75  $ 49.78  $ 39.77  $ 45.66
         Economy                        $ 28.40  $ 31.96  $ 26.72  $ 29.76
         Extended Stay                  $ 15.43  $ 15.78  $ 15.57  $ 16.68
                                        -------  -------  -------  -------
                 Total                  $ 30.01  $ 33.95  $ 28.26  $ 31.70
                                        =======  =======  =======  =======

    Average daily room rate (ADR):
         Midscale w/o F&B               $ 68.69  $ 73.54  $ 68.28  $ 71.80
         Economy                        $ 46.50  $ 48.30  $ 46.30  $ 47.27
         Extended Stay                  $ 24.65  $ 25.09  $ 24.84  $ 25.18
                                        -------  -------  -------  -------
                 Total                  $ 48.78  $ 51.36  $ 48.36  $ 49.92
                                        =======  =======  =======  =======

    Occupancy percentage:
         Midscale w/o F&B                  62.2%    67.7%    58.2%    63.6%
         Economy                           61.1%    66.2%    57.7%    62.9%
         Extended Stay                     62.6%    62.9%    62.7%    66.3%
                                        -------  -------  -------  -------
                 Total                     61.5%    66.1%    58.4%    63.5%
                                        =======  =======  =======  =======

The following presentation includes some non-GAAP financial measures. The Company believes that the presentation of hotel property operating results (POI) for the three and nine months ended September 30, 2009 and 2008 respectively, is helpful to investors, and represents a more useful description of its core operations, as it better communicates the comparability of its hotels' operating results for all of the company's continuing operations hotel properties.

Unaudited-In thousands, except
 statistical data:                  Three months          Nine months
                                 ended September 30,   ended September 30,
                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------

Total continuing operations
 hotels:
    Revenue per available room
     (RevPAR):                  $   30.01  $   33.95  $   28.26  $   31.70
    Average daily room rate
     (ADR):                     $   48.78  $   51.36  $   48.36  $   49.92
    Occupancy percentage:            61.5%      66.1%      58.4%      63.5%

Revenue from room rentals and
 other hotel services consists
 of:
Room rental revenue             $  27,412  $  31,065  $  76,612  $  86,427
Telephone revenue                      79         84        233        266
Other hotel service revenues          715        788      2,070      2,278
                                ---------  ---------  ---------  ---------
  Total revenue                 $  28,206  $  31,937  $  78,915  $  88,971
                                =========  =========  =========  =========

Hotel and property operations
 expense
  Total hotel and property
   operations expense           $  21,299  $  22,315  $  59,626  $  63,466
                                =========  =========  =========  =========

Property Operating Income
 ("POI")
  Total property operating
   income                       $   6,907  $   9,622  $  19,289  $  25,505
                                =========  =========  =========  =========

RECONCILIATION OF INCOME (LOSS)
 FROM CONTINUING OPERATIONS TO
 POI
Net income (loss) from
 continuing operations          $    (393) $   1,906  $  (2,294) $   2,934
Depreciation and amortization       3,549      3,517     10,677     10,217
Net loss on disposition of
 assets.                               43          1        159          -
Other income                          (28)       (28)      (100)       (91)
Interest expense                    3,079      3,114      9,154      9,671
General and administrative
 expense                            1,120        954      3,138      2,949
Income tax (benefit) expense         (463)       158     (1,445)      (175)
                                ---------  ---------  ---------  ---------
POI                             $   6,907  $   9,622  $  19,289  $  25,505
                                =========  =========  =========  =========


Income (loss) from continuing
 operations as a percentage of
 continuing operations total
 revenue                             -1.4%       6.0%      -2.9%       3.3%
                                =========  =========  =========  =========

POI as a percentage of total
 revenue                             24.5%      30.1%      24.4%      28.7%
                                =========  =========  =========  =========

The following table presents our RevPAR, ADR and Occupancy, by region, for the three months ended September 30, 2009 and 2008, respectively. The comparisons of same store operations are for 114 hotels in continuing operations owned by the company as of July 1, 2008.

                     Three months ended              Three months ended
                     September 30, 2009              September 30, 2008
                   ------------------------        ------------------------
Same Store* Room                            Room
Region      Count  RevPAR Occupancy   ADR   Count  RevPAR Occupancy   ADR
            ------ ------ ---------  ------ ------ ------ ---------  ------
Mountain       214 $40.48      72.9% $55.53    214 $48.76      84.9% $57.41
West North
 Central     2,928  32.26      66.2%  48.71  2,928  36.01      72.6%  49.58
East North
 Central     1,081  44.73      69.7%  64.15  1,081  51.98      76.4%  68.04
Middle
 Atlantic/
 New England   142  46.43      68.0%  68.23    142  52.69      75.6%  69.74
South
 Atlantic    4,038  23.75      57.2%  41.53  4,038  26.67      59.3%  45.00
East South
 Central     1,070  30.47      57.0%  53.47  1,070  33.58      59.7%  56.23
West South
 Central       456  24.88      53.3%  46.73    456  30.54      63.6%  48.02
            ------ ------ ---------  ------ ------ ------ ---------  ------
Total Same
 Store       9,929 $30.01      61.5% $48.78  9,929 $33.95      66.1% $51.36
            ------ ------ ---------  ------ ------ ------ ---------  ------

States included
 in the Regions

Mountain    Idaho and Montana
West North
 Central    Iowa, Kansas, Missouri, Nebraska and South Dakota
East North
 Central    Indiana and Wisconsin
Middle
 Atlantic/
 New
 England    Pennsylvania
South
 Atlantic   Delaware, Florida, Georgia, Maryland, North Carolina,
            South Carolina, Virginia and West Virginia
East South
 Central    Alabama, Kentucky and Tennessee
West South
 Central    Arkansas and Louisiana

* Same Store reflects 114 hotels in continuing operations that were owned
by the Company as of July 1, 2008.

The following table presents our RevPAR, ADR and Occupancy, by region, for the nine months ended September 30, 2009 and 2008, respectively. The comparisons of same store operations are for 104 hotels in continuing operations owned as of January 1, 2008 and ten hotels acquired as of January 2, 2008.

                       Nine months ended              Nine months ended
                       September 30, 2009             September 30, 2008
                    ------------------------       ------------------------
Same Store*   Room                           Room
Region        Count RevPAR Occupancy    ADR  Count RevPAR Occupancy    ADR
              ----- ------ ---------  ------ ----- ------ ---------  ------
Mountain        214 $34.22      64.9% $52.72   214 $40.57      77.2% $52.54
West North
 Central      2,928  29.05      60.4%  48.06 2,928  31.97      65.8%  48.56
East North
 Central      1,081  37.42      60.7%  61.65 1,081  43.39      67.6%  64.18
Middle
 Atlantic/New
 England        142  40.22      60.3%  66.71   142  45.15      66.6%  67.81
South
 Atlantic     4,038  24.50      57.2%  42.81 4,038  27.91      62.1%  44.92
East South
 Central      1,070  29.37      55.3%  53.14 1,070  31.15      55.9%  55.74
West South
 Central        456  25.62      54.7%  46.85   456  28.82      61.7%  46.70
              ----- ------ ---------  ------ ----- ------ ---------  ------
Total Same
 Store        9,929 $28.26      58.4% $48.36 9,929 $31.70      63.5% $49.92
              ----- ------ ---------  ------ ----- ------ ---------  ------

States included
 in the Regions

Mountain      Idaho and Montana
West North
 Central      Iowa, Kansas, Missouri, Nebraska and South Dakota
East North
 Central      Indiana and Wisconsin
Middle
 Atlantic/
 New
 England      Pennsylvania
South
 Atlantic     Delaware, Florida, Georgia, Maryland, North Carolina,
              South Carolina, Virginia and West Virginia
East South
 Central      Alabama, Kentucky and Tennessee
West South
 Central      Arkansas and Louisiana

* Same Store reflects 114 hotels in continuing operations that were owned
by the Company as of January 1, 2008 (104) and January 2, 2008 (10).

Contact Information

  • Contact:
    Corrine L. Scarpello
    Supertel Hospitality
    Chief financial officer
    402.371.2520
    Email Contact

    Jerry Daly, Carol McCune
    Daly Gray
    (Media Contact)
    703.435.6293
    Email Contact