SOURCE: Supertel Hospitality, Inc.

September 14, 2005 17:20 ET

Supertel Hospitality, Inc. Announces Agreement to Purchase Six Hotels

NORFOLK, NE -- (MARKET WIRE) -- September 14, 2005 -- Supertel Hospitality, Inc. (NASDAQ: SPPR), a self-administered real estate investment trust, today announced that on September 12, 2005, Supertel Limited Partnership -- a limited partnership 94% owned by Supertel Hospitality, Inc. -- entered into a definitive agreement to purchase six hotels from Independent Property Operators of America, LLC (IPOA). The purchase price for the hotels is $32 million in cash, which Supertel intends to fund from existing credit facilities and new borrowings to be negotiated. The hotels consist of: a Comfort Inn in Fayetteville, North Carolina; a Comfort Suites in Ft. Wayne, Indiana; a Comfort Suites in Lafayette, Indiana; a Comfort Suites in Marion, Indiana; a Comfort Suites in South Bend, Indiana; and a Hampton Inn & Suites in Warsaw, Indiana. The closing of the transaction is expected to occur on or about October 31, 2005, and is subject to customary closing conditions.

Supertel Hospitality, Inc. CEO Paul J. Schulte stated, "These six hotels, with a total of 578 rooms, will be managed by Royal Host Management. We believe this acquisition will be a positive addition to our Supertel portfolio."

Supertel Hospitality, Inc. specializes in limited-service lodging. The Company owns 70 hotels in 16 mid-western and eastern states.

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.

Although the Company 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

  • CONTACT:
    Supertel Hospitality, Inc.
    Paul J. Schulte
    402.371.2520

    Donavon A. Heimes
    402.371.2520