Supertel Hospitality, Inc. (
a real estate investment trust (REIT), recently announced that it
has entered into an agreement to acquire the TownePlace Suites
hotel in Johnston (Urbandale), Iowa, for $10.2 million. The
transaction will be funded with available capital and financing and
is expected to close in the fourth quarter of 2012.
ASHFORD HOSPTLY (AHT): Free Stock Analysis
SUPERTEL HOSPIT (SPPR): Free Stock Analysis
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The 116-room hotel includes studio-suites with four unique one and
two-bedroom floor plans meant for extended stay. The rooms feature
separate living and sleeping areas, home office with complimentary
wireless Internet, and a fully equipped kitchen. The hotel also
showcases 1,000 square feet of meeting space, fitness area,
The strategic move to acquire the hotel is in line with Supertel
Hospitality's policy of recycling capital into upscale-branded
hotels in strong markets. The deal is expected to provide long-term
earnings growth to its shareholders through opportunistic
investment. TownePlace Suites is located in close proximity
to downtown Des Moines and at an exit of the Interstate 80 highway.
Consequently, the hotel is in a perfect position to benefit
from corporate houses in the region as well as other transient
Earlier in the second quarter of 2012, revenue per available room
(RevPAR) for the company's 21 continuing operations, involving
upper mid-scale hotels, increased 4.9% backed by a 2.4% increase in
Supertel Hospitality specializes in the ownership of select-service
hotels. Presently, the company owns 94 hotels comprising 8,283
rooms in 23 states.
Supertel Hospitality currently retains a Zacks #4 Rank, which
translates into a short-term Sell rating. We also have a long-term
Neutral recommendation on the stock. One of its competitors,
Ashford Hospitality Trust, Inc. (
holds a Zacks #3 Rank, which translates into a short term Hold