Supertel Hospitality Announces Management Changes

NORFOLK, NE--(Marketwire - August 31, 2009) - Supertel Hospitality, Inc. (NASDAQ: SPPR), a real estate investment trust (REIT) which owns 117 hotels in 23 states, today announced the reorganization of its senior management team with the promotion of four executives to senior executive posts. Among the promotions announced were two key appointments: Connie Scarpello was named chief financial officer and Steve Gilbert was appointed chief operating officer.

In addition, Paul Heybrock was promoted to vice-president, controller, and Pat Morland was promoted to assistant vice-president of human resources. Concurrently, the company announced that Don Heimes will step down as chief financial officer, effective August 31. Heimes, 65, has served in that capacity since 2004.

"Don played a key leadership role during his five years at Supertel, which included what was arguably the most challenging operating environment in the history of our industry," said Kelly A. Walters, Supertel's president and chief executive officer. "Don wore many hats, and we appreciate his dedication and leadership during a period of unprecedented growth at Supertel. With these promotions, most of whom Don mentored, we have filled those positions internally, and we wish Don all the best in his new endeavors.

"We are now transitioning in a new strategic direction and are restructuring the company in support of that change," Walters added. "Our goal in re-organizing the senior management team is to bring greater balance to the decision-making process within the REIT. We are confident that these four promotions accomplish that. All of these individuals bring relevant experience and strong leadership skills to their new positions. Their years in the hospitality industry, as well as their history with the company, make them a vital collective resource."

Connie Scarpello, 55, previously was chief accounting officer. As chief financial officer, she will formulate financial policy and plans in conjunction with the CEO/COO, as well as oversee and provide overall direction for accounting, financial reporting, tax and budget activities. "With her public and corporate accounting background and in-depth knowledge of the hospitality industry, Connie is eminently qualified to move into the CFO position," Walters said. "Her wealth of finance-related experience prepares her to provide the kind of financial leadership we will need as we begin to move in a new strategic direction." Scarpello has a BSBA degree in accounting from the University of Nebraska at Omaha.

As chief operating officer, Steve Gilbert, 60, will assist and support the CEO in the overall management of the company and establish and implement operating procedures. Previously, he served as SVP/Cap-ex, where he worked closely with all of the brands and oversaw the company's capital improvement activities at its hotel properties. "No other member of the REIT staff possesses the in-depth knowledge of our properties that Steve does, knowledge that will be critical as we adjust and refine our portfolio going forward," Walters added.

Paul Heybrock, 52, was promoted to vice president/controller and is responsible for corporate accounting and financial reporting, including corporate budgeting, forecasting and corporate audits. He holds a BSBA degree in accounting from the University of Nebraska at Lincoln.

Pat Morland, 40, was promoted to assistant vice president of human resources and provides leadership and coordination of all corporate human resource functions, as well as develops and implements corporate human resource strategy and programs. She holds a BS degree in business management from Wayne State, Wayne, Nebraska.

David Walter, Senior Vice President and Treasurer will continue to be responsible for treasury functions, bank relations and SEC compliance matters.

About Supertel Hospitality, Inc.

As of August 31, 2009, Supertel Hospitality, Inc. (NASDAQ: SPPR) owns 117 hotels comprised of 10,274 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.

Contact Information: Contact: Kelly Walters Supertel Hospitality President and Chief Executive Officer 402.371.2520 Jerry Daly, Carol McCune Daly Gray (Media Contact) 703.435.6293