SOURCE: Supertel Hospitality, Inc.

Supertel Hospitality, Inc.

June 08, 2015 09:24 ET

Supertel Hospitality Amends Loans Reducing Borrowing Costs

NORFOLK, NE--(Marketwired - June 08, 2015) - Supertel Hospitality, Inc. (NASDAQ: SPPR), a real estate investment trust (REIT), today announced that it amended various terms of its $11.2 million revolving credit facility with Great Western Bank, including to extend the maturity date to June 30, 2018; reduce the interest rate from 4.5 percent annually to the prime rate plus 1.0 percent annually (currently, 4.25 percent annually); and remove the 2.0 percent prepayment penalty required with refinancing with another financial institution.

On May 28, 2015, the $8.3 million mortgage loan previously held by Middle Patent Capital, LLC was, through the efforts of Supertel, sold to Frontier Bank. In connection with the sale, the interest rate was reduced from 12.5 percent to 6.0 percent and the maturity date was extended from June 6, 2015 to May 1, 2016. The loan is secured by two hotels located in Alexandria, Virginia which are under contract to be sold.

Supertel continues to seek more favorable terms on its loans in the initiative underway to ladder loan maturities, reduce principal amortization payments and decrease overall the weighted average interest cost.

About Supertel Hospitality, Inc.

Supertel Hospitality, Inc. (NASDAQ: SPPR) is a self-administered real estate investment trust that specializes in the ownership of select-service hotels. The company currently owns 49 hotels comprising 4,161 rooms in 19 states. Supertel's hotels are franchised by a number of the industry's most well-regarded brand families including Hilton, Choice and Wyndham. For more information visit the company website 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.

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