Supertel Hospitality Completes Series B Cumulative Preferred Stock Offering

NORFOLK, NE--(Marketwire - June 9, 2008) - Supertel Hospitality, Inc. (NASDAQ: SPPR), a real estate investment trust (REIT) which owns 125 hotels in 24 states, announced that it has completed the public offering of 332,500 shares of its 10% Series B cumulative preferred stock on June 3, 2008. The offering, at a price of $25 per share, included 12,500 shares of the underwriters' over-allotment option. The shares were sold under Supertel's effective shelf registration statement. Supertel used the net proceeds from the offering of approximately $7.5 million to repay outstanding indebtedness on a bridge loan. The Series B cumulative preferred stock is listed on the Nasdaq Global Market under the symbol "SPPRO."

The offering is being made solely by means of a prospectus. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Supertel Hospitality, Inc.

As of June 9, 2008, Supertel Hospitality, Inc. (NASDAQ: SPPR) owned 125 hotels aggregating 10,886 rooms in 24 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 and Masters 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.

Contact Information: Contact: Donavon A. Heimes Supertel Hospitality Chief Financial Officer 402.371.2520 Jerry Daly, Carol McCune Daly Gray (Media Contact) 703.435.6293