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Supertel Hospitality enters agreement to sell seven hotels for $22.5M

On September 26, Supertel Limited Partnership, a limited partnership 99% owned by Supertel Hospitality, entered into a purchase and sale agreement with Westmont USA Development to sell all seven of the partnership’s Savannah Suites hotels for a purchase price of $22.5M in cash. Purchaser deposited $250,000 in escrow as an earnest money deposit against the purchase price. During a contingency period which ends on December 10, the Purchaser may conduct its inspections and investigations of the Savannah Suites Hotels. The Purchaser may, for no reason or for any reason, terminate the Agreement during this contingency period and receive the return of its escrowed funds. The company expects to complete the sale of the Savannah Suites Hotels prior to the end of 2013. The sale is subject to the completion of the contingency period without the termination of the Agreement by the Purchaser and the satisfaction of customary closing conditions.