SOURCE: Supertel Hospitality, Inc.

February 09, 2007 16:21 ET

Supertel Hospitality, Inc. Announces Agreement to Purchase Six Hotels in Virginia and Louisiana

Supertel Hospitality Offers Accommodations for Business and Leisure Travelers in 22 States

NORFOLK, NE -- (MARKET WIRE) -- February 9, 2007 -- Supertel Hospitality, Inc. (NASDAQ: SPPR), a self-administered real estate investment trust, announced that its operating partnership has entered into definitive agreements to purchase six hotels from Budget Motels, Inc. and Waterloo Hospitality, Inc. Five of the hotels are Days Inns, located in Shreveport, Louisiana; Bossier City, Louisiana; Alexandria, Virginia; and two locations in Fredericksburg, Virginia. One hotel is a Comfort Inn located in Alexandria, Virginia.

The purchase price for the hotels is $38.6 million, which Supertel intends to fund from existing credit facilities, borrowings to be negotiated and by assuming debt. The purchase of four of the hotels is expected to be completed in March, and the purchase of the other two hotels is expected to be completed in July, subject to customary closing conditions.

"These six hotels, with a total of 951 rooms, present a great opportunity for Supertel to increase our presence in Virginia and to add a two hotel presence in Louisiana," said Paul J. Schulte, chairman, President and Chief Executive Officer of Supertel Hospitality, Inc. "Bill Latham is a very respected hotel operator, and adding six of his hotels to our portfolio will enhance our objective to provide clean, friendly and affordable options for the business and leisure traveler."

"I have known Paul Schulte and the Supertel organization for many years," said Bill Latham, Chairman and Majority Shareholder of Budget Motels, Inc. and Waterloo Hospitality, Inc. "We believe Supertel is the right buyer for these hotels and they have the ability to incorporate these hotels into their organization in a seamless and efficient manner, which will be a positive experience for our employees and our guests."

Supertel Hospitality, Inc. owns 93 hotels with 7,245 rooms in 22 states. Supertel's hotel portfolio includes Super 8, Comfort Inn/Comfort Suites, Hampton Inn, Holiday Inn Express, Suites at Key Largo, Days Inn, Ramada Limited, Guest House Inn, Sleep Inn, Supertel Inn and Savannah Suites. This diversity enables Supertel to participate in the best practices of each of these respected hospitality partners. Supertel specializes in limited service hotels.

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 Supertel's filings with the Securities and Exchange Commission.

Although Supertel believes the expectations reflected in these forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. The forward-looking statements are made as of the date of this press release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact Information

    Supertel Hospitality, Inc.
    Donavon A. Heimes