SOURCE: Supertel Hospitality, Inc.

May 21, 2007 18:29 ET

Supertel Hospitality, Inc. Announces the Acquisition of 15 Hotels

Supertel Hospitality Now Owns 113 Hotels in 24 States

NORFOLK, NE -- (MARKET WIRE) -- May 21, 2007 -- Supertel Hospitality, Inc. (NASDAQ: SPPR), a self-administered real estate investment trust, today announced it has added 15 hotels to its portfolio with the completion of the previously announced acquisition of the Masters Inn hotels. The purchase price for the hotels was $42.7 million. The hotels are located in: Tuscaloosa, Alabama; Orlando, Florida; Kissimmee, Florida (2); Seffner, Florida; East Tampa, Florida; Doraville, Georgia; Marietta, Georgia; Tucker, Georgia; Augusta, Georgia; Garden City, Georgia; Mt. Pleasant, South Carolina; Charleston, South Carolina; and Cayce, South Carolina (2).

"These 15 Masters Inn hotels, with a total of 1,842 rooms, present a great opportunity for Supertel to add clean, friendly and affordable accommodations for business and leisure travelers in South Carolina, Georgia and Florida markets while expanding into Alabama. We believe adding these facilities to our portfolio will strengthen our overall position in the economy and limited service sectors of the hospitality lodging industry particularly in the southeast section of the United States," said Paul J. Schulte, chairman, president and chief executive officer of Supertel Hospitality, Inc.

These fifteen hotels will continue to be operated under the name of Masters Inn and continue to be managed by HLC Hotels, Inc. (an affiliate of the seller) for a two-year term. Charles M. Aimone, president of HLC Hotels, Inc. said, "We understand these markets very well and have developed a loyal repeat Masters Inn customer base. We look forward to working with Supertel Hospitality as we continue to provide the clean, friendly and affordable lodging facilities consistent with the other hotels in the Supertel portfolio."

Supertel Hospitality, Inc. owns 113 hotels with 9,868 rooms in 24 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, Savannah Suites and now Masters Inn. 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 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.
    Donavon A. Heimes
    402.371.2520