SOURCE: Supertel Hospitality, Inc.

Supertel Hospitality, Inc.

August 06, 2009 20:43 ET

Supertel Hospitality Reports 2009 Second Quarter Results

NORFOLK, NE--(Marketwire - August 6, 2009) - Supertel Hospitality, Inc. (NASDAQ: SPPR), a real estate investment trust (REIT) which owns 120 hotels in 24 states, today announced results for the second quarter ended June 30, 2009.

Revenues from continuing operations for the 2009 second quarter declined 12.3 percent to $27.9 million, compared to the 2008 second quarter. Net income attributable to common shareholders in the 2009 second quarter was $0.9 million, or $.04 per fully diluted share, compared to $1.9 million, or $0.09 per diluted share, in the 2008 second quarter.

Funds from operations (FFO) in the 2009 second quarter was $3.5 million, or $0.16 per diluted share, compared to $5.6 million or $0.26 per diluted share in the 2008 second quarter. Adjusted earnings before interest, taxes, depreciation and amortization, non-controlling interest and preferred stock dividends (Adjusted EBITDA) decreased 16.6 percent to $8.2 million, compared to the 2008 second quarter.

Second Quarter Highlights

--  Continued to outperform the hotel industry in revenue per available
    room (RevPAR) with a decline of 12.2 percent, compared to an industry-wide
    decline of 19.5 percent, according to Smith Travel Research data.
--  Completed the disposition of one hotel, resulting in a net gain of
    approximately $1.1 million, while as of June 30, 2009, six additional
    properties are being marketed for sale.
    

Operating Results

"Consistent with the trends in the economy and our industry, Supertel experienced another challenging quarter," said Kelly A. Walters, Supertel's president and chief executive officer. "Nevertheless, we are encouraged about how our portfolio has performed relative to the competition. During the second quarter, Supertel reported a 12.2 percent decline in RevPAR which compares well to the industry-wide decrease of 19.5 percent, according to Smith Travel Research data. Nearly all of our RevPAR decline was due to a 9.1 percent drop in occupancy, and our average daily room rate (ADR) declined by only 3.5 percent while the industry as a whole experienced a 9.7 percent decrease in ADR. Despite our strong relative statistical performance, the management team is not satisfied with our results, and we remain committed to improving our operating results over the remainder of the year.

"Our managers again proved to be successful at procuring new sources of business, but the entire industry is pursuing the same tactic, which has forced room rates lower for everyone in our competitive set," he said. "Given the difficult operating environment, we believe our operators are competing well in the search for new business."

Walters continued, "Although occupancy softness is being felt throughout the industry, there seems to be ample anecdotal evidence that a turnaround is not far off. Our seasoned team of general managers indicate that the attitudes of our guests and prospective guests seem to be more positive than in the previous few quarters, but we have not yet seen the impact of improved attitudes in the occupancy numbers. We know this down cycle will end, but we are uncertain as to when the upturn will officially begin."

RevPAR for the company's 77 same store economy hotels, which account for about two-thirds of the same store portfolio, declined 12.0 percent, compared to a 16.1 percent decline for the segment, according to Smith Travel Research. Average daily rate (ADR) declined 2.1 percent, and occupancy was off 10.2 percent. RevPAR for the company's 30 same store midscale without food and beverage properties declined 14.4 percent, compared to 16.5 percent for the segment, with ADR down 4.4 percent and occupancy off 10.5 percent. The company's eight extended-stay properties reported a 2.5 percent decline in RevPAR, occupancy remained essentially flat at 65.0 percent and ADR dropped 1.7 percent.

Revenues from continuing operations for the 2009 second quarter decreased $3.9 million or 12.3 percent to $27.9 million, compared to the 2008 second quarter. Lower occupancy was attributable to unfavorable economic conditions. Hotel and property operations expense from continuing operations for the 2009 second quarter decreased $1.9 million, or 8.6 percent, to $19.9 million, compared to the 2008 second quarter. The decline resulted primarily from lower occupancy levels, with payroll expense down $0.4 million, hotel franchise related expenses down $0.5 million, room and office supplies down $0.3 million, utilities expense down $0.2 million, management fees down $0.2 million, and miscellaneous expenses down $0.3 million.

Interest expense from continuing operations did not experience a material change, compared to the year-ago period. Depreciation and amortization expense from continuing operations increased $0.1 million for the 2009 second quarter, compared to the year-ago period. This is primarily related to capital expenditures made on the hotels. The general and administrative expenses from continuing operations for the same period did not change materially.

Property operating income (POI), defined as revenue from room rentals and other hotel services less hotel and property operating expenses, decreased $2.1 million from the year ago period to $8 million. "We continue to work closely with our operators and their managers, focusing on both revenue enhancement and controlling costs," Walters said. "Our operators have been diligent in controlling variable costs such as labor, but in this declining occupancy environment there are fewer opportunities to affect fixed costs, which led to the erosion in operating margins."

Dispositions

Supertel began marketing eight hotels for sale in the 2009 first quarter, placing them in discontinued operations. In March 2009, the company sold a Super 8 hotel, located in Charles City, Iowa for $1.1 million, with a nominal net gain, and in May 2009 the company sold a Holiday Inn Express hotel in Gettysburg, Pennsylvania for $2.6 million with a $1.1 million net gain. Subsequent to quarter end, in July 2009, the company sold a Masters Inn in Kissimmee, Florida for $1.6 million with a nominal net gain. "We are actively marketing the remaining five properties and have received positive buyer interest," said Donavon A. Heimes, chief financial officer. "Financing remains a challenge for buyers; however, we have found that qualified buyers for properties priced under $5.0 million can generally obtain loans from local banks and other sources."

Balance Sheet

During the second quarter, the company paid off a $9.0 million, 8.4 percent note payable to First National Bank of Omaha, which was scheduled to mature in November 2009. The loan was refinanced using a $10 million facility provided by Great Western Bank. The new facility bears interest at 5.5 percent and matures in May 2012. The refinancing left approximately $1.0 million available for support of general operations and also unencumbered five continuing operations hotels from mortgage debt.

Supertel's remaining near-term debt maturity is a $9.5 million note payable to Wells Fargo Bank in September 2009 which the company intends to refinance or repay using other financing, funds from operations or proceeds from sale of hotels.

Dividend

The company did not declare a common stock dividend for the 2009 second quarter. The company will monitor requirements to maintain its REIT status and will regularly evaluate the dividend policy.

Outlook

"The economy remains in recession, and it is difficult to have clarity over the short term, but we are confident that America will indeed recover on the heels of the stimulus package," Walters commented. "We also fully understand that hospitality companies typically lag the general market by sometimes as much as six months. So, we are far from out of the woods, but I want to emphasize that we are comfortable with our position within the industry.

"Some forecasts indicate that the hotel industry will begin to stabilize in the latter part of the second half of the year and post a basically flat to down slightly RevPAR in 2010. Regardless of the timing of the recovery, our operations focus will remain on building revenues while restraining costs.

"The unprecedented economic conditions have prompted us to find new ways to operate our hotels smarter at lower cost, a trend we intend to continue during the expected coming rebound. We will continue to benefit from these savings when the economy begins to turn around.

"We remain clearly focused on preserving capital and strengthening our balance sheet," he said. "Concurrently, we are looking to the future and are reviewing our strategies to prepare for the economic rebound."

About Supertel Hospitality, Inc.

As of August 6, 2009, Supertel Hospitality, Inc. (NASDAQ: SPPR) owns 120 hotels comprised of 10,492 rooms in 24 states. 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 Inn and Baymont Inn. This diversity enables the company to participate in the best practices of each of these respected hospitality partners. The company specializes in limited-service hotels, which do not normally offer food and beverage service. 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.

SELECTED FINANCIAL DATA:

The following table sets forth the company's balance sheet as of June 30, 2009 and December 31, 2008. The company owned 121 hotels (including six hotels held for sale) at June 30, 2009 and owned 123 hotels at December 31, 2008, (in thousands, except share data).

                                                           As of
                                                  June 30,    December 31,
                                                    2009         2008
                                                 -----------  ------------
                                                 (unaudited)

ASSETS
  Investments in hotel properties                $   381,583  $    380,604
  Less accumulated depreciation                       88,409        81,549
                                                 -----------  ------------
                                                     293,174       299,055

  Cash and cash equivalents                              750           712
  Accounts receivable                                  2,375         2,401
  Prepaid expenses and other assets                    4,937         2,903
  Deferred financing costs, net                        1,495         1,580
  Investment in hotel properties, held for
   sale, net                                          12,155        14,826
                                                 -----------  ------------
                                                 $   314,886  $    321,477
                                                 ===========  ============

LIABILITIES AND EQUITY
LIABILITIES
  Accounts payable, accrued expenses and other
   liabilities                                   $    13,934  $     13,697
  Debt related to hotel properties held for sale       9,442        10,849
  Long-term debt                                     188,453       191,957
                                                 -----------  ------------
                                                     211,829       216,503
                                                 -----------  ------------

  Redeemable noncontrolling interest in
   consolidated partnership,
   at redemption value                                 1,778         1,778

  Redeemable preferred stock
    Series B, 800,000 shares authorized; $.01
     par value, 332,500 shares outstanding,
     liquidation preference of $8,312                  7,662         7,662

EQUITY
Shareholders' equity
  Preferred stock,  40,000,000 shares
   authorized;
    Series A, 2,500,000 shares authorized,
     $.01 par value, 803,270 shares
     outstanding, liquidation preference of
     $8,033                                                8             8
  Common stock, $.01 par value, 100,000,000
   shares authorized; 21,880,017 and
   20,924,677 shares outstanding.                        219           209
  Additional paid-in capital                         119,693       112,804
  Distributions in excess of retained earnings       (27,353)      (25,551)
                                                 -----------  ------------
    Total shareholders' equity                        92,567        87,470
Noncontrolling interest
  Noncontrolling interest in consolidated
   partnership, redemption value $510 and
   $2,101                                              1,050         8,064

                                                 -----------  ------------
    Total equity                                      93,617        95,534
                                                 -----------  ------------

COMMITMENTS AND CONTINGENCIES
                                                 $   314,886  $    321,477
                                                 ===========  ============

The following table sets forth the Company's unaudited results of operations for the three and six months ended June 30, 2009 and 2008, respectively (in thousands, except per share data).

                                    Three Months Ended   Six Months Ended
                                         June 30,            June 30,
                                    ------------------  ------------------
                                      2009      2008      2009      2008
                                    --------  --------  --------  --------
REVENUES
  Room rentals and other hotel
   services                         $ 27,889  $ 31,812  $ 50,955  $ 57,339
                                    --------  --------  --------  --------

EXPENSES
  Hotel and property operations       19,936    21,806    38,573    41,432
  Depreciation and amortization        3,594     3,455     7,190     6,741
  General and administrative           1,047     1,040     2,018     1,996
                                    --------  --------  --------  --------
                                      24,577    26,301    47,781    50,169
                                    --------  --------  --------  --------

EARNINGS BEFORE NET GAIN (LOSS)
 ON DISPOSITIONS OF ASSETS,
 OTHER INCOME, INTEREST EXPENSE
 AND INCOME TAXES                      3,312     5,511     3,174     7,170

Net gain (loss) on dispositions of
 assets                                  (49)       (1)     (116)        1
Other income                              34        32        72        63
Interest expense                      (3,145)   (3,193)   (6,125)   (6,600)
                                    --------  --------  --------  --------

INCOME (LOSS) FROM CONTINUING
 OPERATIONS BEFORE INCOME TAXES          152     2,349    (2,995)      634

Income tax (expense) benefit              49      (309)    1,006       353
                                    --------  --------  --------  --------

INCOME (LOSS) FROM CONTINUING
 OPERATIONS                              201     2,040    (1,989)      987

Earnings from discontinued
 operations                            1,142       277       907       424
                                    --------  --------  --------  --------

NET INCOME (LOSS)                      1,343     2,317    (1,082)    1,411

Noncontrolling interest                  (69)     (194)       17      (181)
                                    --------  --------  --------  --------

NET INCOME (LOSS) ATTRIBUTABLE TO
 CONTROLLING INTERESTS                 1,274     2,123    (1,065)    1,230

Preferred stock dividends               (369)     (236)     (737)     (422)
                                    --------  --------  --------  --------

NET INCOME (LOSS) ATTRIBUTABLE
 TO COMMON SHAREHOLDERS             $    905  $  1,887  $ (1,802) $    808
                                    ========  ========  ========  ========

NET EARNINGS (LOSS) PER COMMON
 SHARE - BASIC AND DILUTED
EPS from continuing operations      $  (0.01) $   0.08  $  (0.12) $   0.02
                                    ========  ========  ========  ========
EPS from discontinued operations    $   0.05  $   0.01  $   0.04  $   0.02
                                    ========  ========  ========  ========
EPS Basic and Diluted               $   0.04  $   0.09  $  (0.08) $   0.04
                                    ========  ========  ========  ========




RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Unaudited - In thousands, except per share data:

                                        Three months         Six months
                                       ended June 30,      ended June 30,
                                       2009      2008      2009      2008
                                     --------  --------- --------  --------
Weighted average shares outstanding
 for:
  calculation of earnings per share
   - basic                            21,812     20,826   21,371    20,764
                                    ========  ========= ========  ========
  calculation of earnings per share
   - diluted                          21,812     20,826   21,371    20,764
                                    ========  ========= ========  ========

Weighted average shares outstanding
 for:
  calculation of FFO per share -
   basic                              21,812     20,826   21,371    20,764
                                    ========  ========= ========  ========
  calculation of FFO per share -
   diluted                            21,812     22,346   21,371    22,347
                                    ========  ========= ========  ========

Reconciliation of Weighted average
 number of shares for EPS diluted
 to FFO per share diluted:
EPS diluted shares                    21,812     20,826   21,371    20,764
Common stock issuable upon exercise
 or conversion of:
    Options                                -          -        -         -
    Series A Preferred Stock               -      1,520        -     1,583
                                    --------  --------- --------  --------
FFO per share diluted shares          21,812     22,346   21,371    22,347
                                    ========  ========= ========  ========

Reconciliation of net income (loss)
 to FFO
Net income (loss) attributable to
 common shareholders                $    905  $   1,887 $ (1,802) $    808
Depreciation and amortization          3,594      3,741    7,311     7,320
Net (gain) loss on disposition of
 assets                               (1,024)         1     (964)       (1)
                                    --------  --------- --------  --------
FFO available to common
 shareholders                       $  3,475  $   5,629 $  4,545  $  8,127
                                    ========  ========= ========  ========

FFO per share - basic               $   0.16  $    0.27 $   0.21  $   0.39
                                    ========  ========= ========  ========
FFO per share - diluted             $   0.16  $    0.26 $   0.21  $   0.38
                                    ========  ========= ========  ========

FFO is a non-GAAP financial measure. We consider FFO to be a market accepted measure of an equity REIT's operating performance, which is necessary, along with net earnings (loss), for an understanding of our operating results. FFO, as defined under the National Association of Real Estate Investment Trusts (NAREIT) standards, consists of net income computed in accordance with GAAP, excluding gains (or losses) from sales of real estate assets, plus depreciation and amortization of real estate assets. We believe our method of calculating FFO complies with the NAREIT definition. FFO does not represent amounts available for management's discretionary use because of needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties. FFO should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. All REITs do not calculate FFO in the same manner; therefore, our calculation may not be the same as the calculation of FFO for similar REITs.

We use FFO as a performance measure to facilitate a periodic evaluation of our operating results relative to those of our peers, who, like us, are typically members of NAREIT. We consider FFO a useful additional measure of performance for an equity REIT because it facilitates an understanding of the operating performance of our properties without giving effect to real estate depreciation and amortization, which assume that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, we believe that FFO provides a meaningful indication of our performance.


Unaudited-In thousands, except
 statistical data:                     Three months         Six months
                                      ended June 30,      ended June 30,
                                      2009      2008      2009      2008
                                    --------  --------- --------  --------
RECONCILIATION OF NET INCOME (LOSS)
 TO ADJUSTED EBITDA
Net income (loss) attributable to
 common shareholders                $    905  $   1,887 $ (1,802) $    808
Interest expense, including disc
 ops                                   3,283      3,441    6,406     7,101
Income tax (benefit) expense,
 including disc ops                      (15)       334   (1,058)     (364)
Depreciation and amortization,
 including disc ops                    3,594      3,741    7,311     7,320
                                    --------  --------- --------  --------
  EBITDA                               7,767      9,403   10,857    14,865
Noncontrolling interest                   69        194      (17)      181
Preferred stock dividend                 369        236      737       422
                                    --------  --------- --------  --------
  ADJUSTED EBITDA                   $  8,205  $   9,833 $ 11,577  $ 15,468
                                    ========  ========= ========  ========

Adjusted EBITDA is a financial measure that is not calculated in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We calculate Adjusted EBITDA by adding back to net earnings (loss) available to common shareholders certain non-operating expenses and non-cash charges which are based on historical cost accounting and we believe may be of limited significance in evaluating current performance. We believe these adjustments can help eliminate the accounting effects of depreciation and amortization and financing decisions and facilitate comparisons of core operating profitability between periods, even though Adjusted EBITDA also does not represent an amount that accrues directly to common shareholders. In calculating Adjusted EBITDA, we also add back preferred stock dividends and noncontrolling interests, which are cash charges.

Adjusted EBITDA doesn't represent cash generated from operating activities determined by GAAP and should not be considered as an alternative to net income, cash flow from operations or any other operating performance measure prescribed by GAAP. Adjusted EBITDA is not a measure of our liquidity, nor is Adjusted EBITDA indicative of funds available to fund our cash needs, including our ability to make cash distributions. Neither does the measurement reflect cash expenditures for long-term assets and other items that have been and will be incurred. Adjusted EBITDA may include funds that may not be available for management's discretionary use due to functional requirements to conserve funds for capital expenditures, property acquisitions, and other commitments and uncertainties. To compensate for this, management considers the impact of these excluded items to the extent they are material to operating decisions or the evaluation of our operating performance. Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies.

The following table sets forth the statistics of the Company's same store continuing operations hotel properties for the three and six months ended June 30, 2009 and 2008, respectively.

Unaudited-In thousands, except             Three months       Six months
 statistical data:                        ended June 30,    ended June 30,
                                          2009     2008     2009     2008
                                        -------  -------  -------  -------
Same Store (115 hotels):
  Revenue per available room
   (RevPAR):
      Midscale w/o F&B                  $ 41.61  $ 48.59  $ 37.79  $ 43.10
      Economy                           $ 28.19  $ 32.04  $ 25.86  $ 28.64
      Extended Stay                     $ 16.27  $ 16.69  $ 15.64  $ 17.14
                                        -------  -------  -------  -------
               Total                    $ 29.79  $ 33.94  $ 27.33  $ 30.54
                                        =======  =======  =======  =======

  Average daily room rate (ADR):
      Midscale w/o F&B                  $ 69.53  $ 72.73  $ 67.84  $ 70.66
      Economy                           $ 46.90  $ 47.90  $ 46.19  $ 46.71
      Extended Stay                     $ 25.05  $ 25.48  $ 24.94  $ 25.21
                                        -------  -------  -------  -------
               Total                    $ 49.13  $ 50.89  $ 48.16  $ 49.20
                                        =======  =======  =======  =======

  Occupancy percentage:
      Midscale w/o F&B                     59.8%    66.8%    55.7%    61.0%
      Economy                              60.1%    66.9%    56.0%    61.3%
      Extended Stay                        65.0%    65.5%    62.7%    68.0%
                                        -------  -------  -------  -------
               Total                       60.6%    66.7%    56.8%    62.1%
                                        =======  =======  =======  =======

The following presentation includes some non-GAAP financial measures. The Company believes that the presentation of hotel property operating results (POI) for the three and six months ended June 30, 2009 and 2008 respectively, is helpful to investors, and represents a more useful description of its core operations, as it better communicates the comparability of its hotels' operating results for all of the company's continuing operations hotel properties.

Unaudited-In thousands, except
 statistical data:                  Three months           Six months
                                   ended June 30,        ended June 30,
                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------

Revenue from room rentals and
 other hotel services consists
 of:
Room rental revenue             $  27,092  $  30,934  $  49,444  $  55,663
Telephone revenue                      80         90        155        186
Other hotel service revenues          717        788      1,356      1,490
                                ---------  ---------  ---------  ---------
  Total revenue                 $  27,889  $  31,812  $  50,955  $  57,339
                                =========  =========  =========  =========

Hotel and property operations
 expense
   Total hotel and property
    operations expense          $  19,936  $  21,806  $  38,573  $  41,432
                                =========  =========  =========  =========

Property Operating Income
 ("POI")
   Total property operating
    income                      $   7,953  $  10,006  $  12,382  $  15,907
                                =========  =========  =========  =========

RECONCILIATION OF INCOME (LOSS)
 FROM CONTINUING OPERATIONS TO
 POI
  Income (loss) from continuing
   operations                   $     201  $   2,040  $  (1,989) $     987
  Depreciation and amortization     3,594      3,455      7,190      6,741
  Net (gain) loss on disposition
   of assets                           49          1        116         (1)
  Other income                        (34)       (32)       (72)       (63)
  Interest expense                  3,145      3,193      6,125      6,600
  General and administrative
   expense                          1,047      1,040      2,018      1,996
  Income tax (benefit) expense        (49)       309     (1,006)      (353)
                                ---------  ---------  ---------  ---------
  POI                           $   7,953  $  10,006  $  12,382  $  15,907
                                =========  =========  =========  =========

Income (loss) from continuing
 operations as a percentage
 of total revenue                     0.7%       6.4%      -3.9%       1.7%
                                =========  =========  =========  =========


POI as a percentage of total
 revenue                             28.5%      31.5%      24.3%      27.7%
                                =========  =========  =========  =========

The following table presents our RevPAR, ADR and Occupancy, by region, for the three months ended June 30, 2009 and 2008, respectively. The comparisons of same store operations (excluding Held For Sale hotels) are for 115 hotels owned as of April 1, 2008.

                      Three months ended                Three months ended
                        June 30, 2009                     June 30, 2008
                    -----------------------         -----------------------
Same Store*  Room                            Room
Region       Count  RevPAR Occupancy  ADR    Count  RevPAR Occupancy  ADR
            ------- ------- ------  ------- ------- ------- ------  -------
Mountain        214 $ 35.28   65.8% $ 53.62     214 $ 41.52   79.3% $ 52.38
West North
 Central      2,928   30.71   63.1%   48.70   2,928   34.15   69.7%   48.97
East North
 Central      1,081   36.84   60.7%   60.66   1,081   44.57   70.4%   63.29
Middle
 Atlantic/
 New England    205   38.01   56.8%   66.94     205   46.11   66.7%   69.16
South
 Atlantic     4,038   26.58   60.1%   44.25   4,038   30.73   65.7%   46.76
East South
 Central      1,070   31.19   58.0%   53.75   1,070   32.65   57.5%   56.77
West South
 Central        456   26.12   55.5%   47.09     456   29.84   63.0%   47.39
            ------- ------- ------  ------- ------- ------- ------  -------
Total Same
 Store        9,992 $ 29.79   60.6% $ 49.13   9,992 $ 33.94   66.7% $ 50.89
            ------- ------- ------  ------- ------- ------- ------  -------

States included in the Regions
Mountain            Idaho and Montana
West North Central  Iowa, Kansas, Missouri, Nebraska and South Dakota
East North Central  Indiana and Wisconsin
Middle Atlantic/
 New England        Maine and Pennsylvania
South Atlantic      Delaware, Florida, Georgia, Maryland, North Carolina,
                    South Carolina, Virginia and West Virginia
East South Central  Alabama, Kentucky and Tennessee
West South Central  Arkansas and Louisiana


* Same Store reflects 115 hotels (excluding Held for Sale hotels).

The following table presents our RevPAR, ADR and Occupancy, by region, for the six months ended June 30, 2009 and 2008, respectively. The comparisons of same store operations (excluding Held For Sale hotels) are for 105 hotels owned as of January 1, 2008 and ten hotels acquired as of January 2, 2008.


                      Six months ended                  Six months ended
                        June 30, 2009                     June 30, 2008
                    -----------------------         -----------------------
Same Store*  Room                            Room
Region       Count  RevPAR Occupancy  ADR    Count  RevPAR Occupancy  ADR
            ------- ------- ------  ------- ------- ------- ------  -------
Mountain        214 $ 31.03   60.8% $ 51.00     214 $ 36.43   73.3% $ 49.69
West North
 Central      2,928   27.42   57.5%   47.69   2,928   29.93   62.4%   47.96
East North
 Central      1,081   33.71   56.1%   60.07   1,081   39.05   63.2%   61.83
Middle
 Atlantic/
 New England    205   32.23   50.6%   63.74     205   36.70   56.0%   65.48
South
 Atlantic     4,038   24.88   57.3%   43.46   4,038   28.53   63.6%   44.89
East South
 Central      1,070   28.81   54.4%   52.96   1,070   29.93   54.0%   55.47
West South
 Central        456   25.99   55.4%   46.91     456   27.94   60.7%   46.00
            ------- ------- ------  ------- ------- ------- ------  -------
Total Same
 Store        9,992 $ 27.33   56.8% $ 48.16   9,992 $ 30.54   62.1% $ 49.20
            ------- ------- ------  ------- ------- ------- ------  -------

States included in the Regions
Mountain            Idaho and Montana
West North Central  Iowa, Kansas, Missouri, Nebraska and South Dakota
East North Central  Indiana and Wisconsin
Middle Atlantic/
 New England        Maine and Pennsylvania
South Atlantic      Delaware, Florida, Georgia, Maryland, North Carolina,
                    South Carolina, Virginia and West Virginia
East South Central  Alabama, Kentucky and Tennessee
West South Central  Arkansas and Louisiana


* Same Store reflects 115 hotels (excluding Held For Sale hotels).
The same store includes ten hotels acquired as of January 2, 2008.

Contact Information

  • Contact:
    Donavon A. Heimes
    Supertel Hospitality
    Chief financial officer
    402.371.2520
    Email Contact

    Jerry Daly, Carol McCune
    Daly Gray
    (Media Contact)
    703.435.6293
    Email Contact