SOURCE: Supertel Hospitality, Inc.

Supertel Hospitality, Inc.

August 01, 2011 11:26 ET

Supertel Hospitality, Inc. Announces Sale of Hotel Properties for $5.1 Million

NORFOLK, NE--(Marketwire - Aug 1, 2011) - Supertel Hospitality, Inc. (NASDAQ: SPPR), a real estate investment trust (REIT), which owns 101 hotels in 23 states, today announced that it has closed on the sale of two independently flagged economy hotels this week. Combined proceeds from the sales totaled $5.1 million which were used by Supertel to reduce balances on the company's credit facilities.

The 119-room Charleston, (Mount Pleasant) South Carolina Masters Inn sold on July 28, 2011 for $3.75 million. The 87-room Atlanta, (Marietta) Georgia Masters Inn sold on July 29, 2011 for $1.35 million. The hotels were purchased as part of a larger portfolio in May 2007 and were no longer classified as core holdings for the REIT. At present, Supertel's investment strategy calls for the orderly divesture of certain independently flagged economy hotels over the near to intermediate term.

"With the sale of these two properties, Supertel has again taken an important step toward reconfiguring the portfolio and strengthening our balance sheet by shedding assets which were no longer accretive to our shareholders," said Kelly A. Walters, Supertel's president & CEO. "The capital generated from last week's transactions allowed us to reduce our overall mortgage balance and cuts our annual debt service by approximately $400,000."

About Supertel Hospitality, Inc.

As of August 1, 2011, Supertel Hospitality, Inc. (NASDAQ: SPPR) owns 101 hotels comprised of 8,856 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 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 Inns and a Baymont 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