-- 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 millionIn 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. (
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 Jerry Daly, Carol McCune Daly Gray (Media Contact) 703.435.6293