NORFOLK, NE--(Marketwired - April 17, 2015) - Supertel Hospitality, Inc. (SPPR), a real estate investment trust (REIT), today announced that it closed on the sale of two Savannah Suites hotels on April 1, 2015. The 172-room Savannah Suites located in Augusta, Georgia, sold for $3.4 million, and the 120-room Savannah Suites in Chamblee, Georgia, sold for $4.4 million. The company applied $4.1 million of the proceeds to the GE Capital mortgage note that matures in December 2015.
Bill Blackham, Supertel's Chief Executive Officer, stated, "Supertel has monetized six hotels in 2015 to date and is expected to accelerate hotel sales in the future in order to recycle capital and acquire relatively new upper midscale and upscale limited service, select service and extended stay hotels that are consistent with our revised investment strategy. As the economy continues to improve, we anticipate this repositioning will yield higher returns for our shareholders."
On April 13, 2015, Supertel entered into an agreement to sell two hotels located in Alexandria, Virginia, for a purchase price of $19.0 million. The sale is subject to the completion of the inspection period and customary closing conditions. Provided the closing conditions are met, the company expects to complete the sale in late spring or early summer.
About Supertel Hospitality, Inc.
Supertel Hospitality, Inc. (SPPR) is a self-administered real estate investment trust that specializes in the ownership of select-service hotels. The company currently owns 50 hotels comprising 4,210 rooms in 20 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 visit the company website 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.