SOURCE: Supertel Hospitality, Inc.
NORFOLK, NE--(Marketwire - Jan 7, 2013) - Supertel Hospitality, Inc. (NASDAQ: SPPR), a real estate investment trust (REIT), today announced that it has closed on the sale of four hotels in the last week of 2012. Combined proceeds from the sales totaled $6.15 million which were used by Supertel to reduce debt.
The four sold hotel properties include:
- The Super 8 hotel in Lincoln, Nebraska sold on December 27, 2012 for $1.6 million. The 82-room hotel located on 2635 West "O" Street was part of the original portfolio developed by the company in 1983.
- The Ramada Limited hotel in Ellenton, Florida sold on December 27, 2012 for $1.35 million. The 73-room hotel located at 5218 17th Street East was purchased by Supertel in June 1998.
- The Super 8 hotel in Omaha, Nebraska sold on December 28, 2012 for $1.35 million. The 73-room hotel located on 7111 Spring Street was developed by Supertel in May 1986.
- The Comfort Inn in Erlanger, Kentucky sold on December 28, 2012 for $1.85 million. The 145-room hotel located on 630 Donaldson Road was purchased by Supertel in May 2006.
Supertel sold 15 non-core hotels in 2012, generating gross proceeds of approximately $25.5 million which were used primarily to reduce debt. The company also announced that it is no longer under contract to acquire the Marriott TownePlace Suites in Urbandale, Iowa.
"With the sale of 15 hotels in 2012, we continue to demonstrate our commitment to divest ourselves of non-strategic underperforming assets to improve the firm's margins," said Kelly Walters, Supertel's president and chief executive officer. "Although the proposed TownePlace Suites acquisition has not occurred as planned, Supertel's acquisition strategy remains unchanged in its commitment to transition its portfolio in the direction of premium-branded, select-service hotels."
About Supertel Hospitality, Inc.
Supertel Hospitality, Inc. (NASDAQ: SPPR) is a self-administered real estate investment trust that specializes in the ownership of select-service hotels. The company currently owns 86 hotels comprising 7,618 rooms in 22 states. Supertel's hotels are franchised by a number of the industry's most well-regarded brand families, including Hilton, Choice and Wyndham. 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.