SOURCE: Supertel Hospitality, Inc.

April 18, 2007 18:04 ET

Supertel Hospitality, Inc. Announces the Acquisition of Seven Hotels

Supertel Hospitality Now Owns Hotels in 23 States by Expanding Into Louisiana

NORFOLK, NE -- (MARKET WIRE) -- April 18, 2007 -- Supertel Hospitality, Inc. (NASDAQ: SPPR), a self-administered real estate investment trust, today announced it has added seven hotels to its portfolio. Supertel has completed the previously announced acquisition of four hotels from Waterloo Hospitality, Inc. for $30.9 million. At the same time, Supertel will lease two additional properties from Budget Motels until the expected acquisition close in July 2007. The Tara Inn and Suites, a 127-room extended stay hotel located in Jonesboro, Georgia, was acquired by Supertel in April for $6 million.

The four Waterloo Hospitality hotels include a Comfort Inn in Alexandria, Virginia and Days Inns in Alexandria, Virginia; Fredericksburg (South), Virginia; and Shreveport, Louisiana. These hotels are part of a six hotel 951 room portfolio that Supertel agreed to purchase from Budget Motels, Inc. and Waterloo Hospitality, Inc. Supertel is leasing the two remaining Days Inns in Bossier City, Louisiana and Fredericksburg (North), Virginia.

"These seven hotels, with a total of 1078 rooms, increase our presence in Virginia and Georgia and enter Louisiana," said Paul J. Schulte, chairman, president and chief executive officer of Supertel Hospitality, Inc. "Adding these hotels to our portfolio furthers our objective to provide clean, friendly and affordable options for the business and leisure traveler."

Supertel Hospitality, Inc. owns 98 hotels with 8026 rooms in 23 states. Supertel currently has agreements, subject to customary closing conditions, to purchase 24 limited service hotels. 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 Tara Inn and Suites. This diversity enables Supertel to participate in the best practices of each of these respected hospitality partners. Supertel specializes in limited service hotels which normally do not offer food and beverage service.

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