This Agreement Expands Supertel's Presence in Southeastern United States
NORFOLK, NE -- (MARKET WIRE) -- March 8, 2007 -- Supertel Hospitality, Inc. (
The purchase price for the hotels is $42.7 million, which Supertel intends to fund from existing credit facilities and new borrowings to be negotiated. The purchase of the hotels is expected to be completed on or about April 30, 2007 and is subject to customary closing conditions. Including the Masters hotels, the company currently has agreements to purchase 29 limited service hotels.
"These 15 Masters Inns 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 and to add the state of Alabama to our portfolio. By the end of July 2007, we anticipate that we will finalize pending transactions that add 3,406 rooms to our portfolio and bring our total number to 10,651 rooms in 23 States. 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," 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 Inns 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 Inns 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 93 hotels with 7,245 rooms in 22 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 and Savannah Suites. 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 Supertel's filings with the Securities and Exchange Commission.
Although Supertel 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