SOURCE: Supertel Hospitality, Inc.

Supertel Hospitality, Inc.

April 26, 2011 13:04 ET

Supertel Hospitality Implements Strategy of Using Regional Management Companies

NORFOLK, NE--(Marketwire - Apr 26, 2011) - Supertel Hospitality, Inc. (NASDAQ: SPPR), a real estate investment trust (REIT) which owns 105 hotels in 23 states, today announced that it had implemented its strategy of employing regional hotel management companies to optimize operating results at its hotels. Following a comprehensive selection process, Supertel has signed agreements with separate management companies, each of which will operate a regional portion of Supertel's hotel portfolio. The companies are Hospitality Management Advisors, Inc., Strand Development Company, LLC, and Kinseth Hotel Corporation. HLC Hotels, Inc. will continue to manage the company's 10-hotel Masters Inns portfolio.

"Like all real estate, hotels are a local business, and this strategic move from centralized management to a regional approach with operators who have a long-term track record in those markets, is expected to generate higher returns through better knowledge of our markets," said Kelly A. Walters, Supertel's president and CEO. "Each of these operators has similar experience and a proven record of success and has been recognized for award-winning performance. They also have the development and acquisition experience we seek to assist us when we return to our acquisition strategy. All of these operators have management portfolios similar to Supertel's targeted profile of premium select-service brands as the company continues to transition over time to a more upmarket portfolio."

The management companies are:

  • Hospitality Management Advisors, Inc. HMA has nearly three decades of hotel operating, management and development/acquisition expertise. The company has operated more than 125 properties since its formation under the leading brands of Marriott, Hilton, Starwood, InterContinental Hotel Group, Radisson, Wyndham and Choice. The company will operate 25 Supertel hotels in Arkansas, Louisiana, Tennessee, Kentucky, Indiana, Virginia and Florida. Based in Memphis, Tenn., the company has won more than 35 awards for operating excellence.

  • Strand Development Company, LLC Headquartered in Myrtle Beach, S.C., Strand currently operates 40 hotels under approximately 20 of the nation's leading brands, as well as independent hotels and smaller, regional brands. Founded in 1969, the company has established a strong reputation for excellence in managing in the economy extended-stay segment and will operate Supertel's seven Savannah Suites hotels, as well as 17 additional properties located in Georgia, Delaware, Maryland, North Carolina, Pennsylvania, Tennessee, Virginia and West Virginia.

  • Kinseth Hotel Corporation A leading third-party operator based in North Liberty, Iowa, Kinseth will manage 46 Supertel properties in eight states, primarily in the Midwest. The award-winning management company has a proven track record with the leading limited-service brands of Marriott, Hilton, InterContinental Hotel Group and Radisson. Founded in 1981, Kinseth currently operates 45 hotels in 10 states, and has developed and acquired a number of hotels.

  • HLC Hotels, Inc. HLC Hotels, Inc. is a Savannah, Ga.-based hotel management company, operating both select-service hotels and historic boutique inns since 1971. The company currently owns and operates six historic inns and one all-suite hotel in Savannah, Ga. HLC currently provides management services for Supertel's 10 Masters Inns hotels, with locations in the southeast U.S.

About Supertel Hospitality, Inc.
As of March 31, 2011, Supertel Hospitality, Inc. (NASDAQ: SPPR) owned 105 hotels comprising 9,248 rooms in 23 states. The company focuses primarily on the limited-service hotel segment, which does not offer food and beverage service. The company's hotel portfolio includes Baymont Inn, Comfort Inn/Comfort Suites, Days Inn, Guest House Inn, Hampton Inn, Holiday Inn Express, Key West Inns, Masters Inns, Quality Inn, Ramada Limited, Savannah Suites, Sleep Inn, Super 8 and Supertel Inn. 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

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