NORFOLK, NE--(Marketwire - Nov 7, 2012) - Supertel Hospitality, Inc. (
The company's debt service obligations are expected to decline by approximately $1.1 million annually as a consequence of the interest rate and terms of the loan. Ten of the hotels that previously secured the Greenwich Capital loan are now unencumbered. Five of these hotels are held for sale, four of which are currently under contract for sale.
"We have long had the maturity date of the Greenwich Capital loan circled on our calendar and this completion allows us the flexibility to proceed with the next phase of our plan to sell non-strategic assets and begin to rebuild our portfolio with premium-branded, select service hotels," said Kelly Walters, Supertel's president and chief executive officer. "Our debt service obligation is materially reduced with this refinancing and ten of our hotels that secured the prior loan are now available for additional financing and sale as we move forward with our investment strategy."
Supertel has filed a Form 8-K with the Securities and Exchange Commission today regarding the refinancing. A copy of the Form 8-K is available on the SEC's website www.sec.gov and on Supertel's website www.supertelinc.com.
About Supertel Hospitality, Inc.
Supertel Hospitality, Inc. (
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.