Supertel Hospitality, Inc.
), a real estate investment trust (REIT), recently
announced that it has completed the sale of a 52-room Super 8
hotel in Antigo, Wisconsin for $1.0 million to an undisclosed
buyer. The company utilized the proceeds to repay the associated
mortgage debt on the property.
Supertel Hospitality continues to reposition its portfolio
through the disposal of non-strategic assets and acquisition of
high-quality properties. During the third quarter of 2012, the
company sold Super 8 hotel in Watertown, South Dakota for $1.55
million. The proceeds were utilized to retire debt and for
general corporate purposes. Additionally the company also
entered into an agreement to purchase a 116-room TownePlace
Suites in suburban Des Moines (Urbandale), Iowa for $10.2 million
and expanded its upper-to-mid-scale portfolio.
Over the past few quarters, Supertel Hospitality has continued
with its transition from the economy hotel sector to a more
upscale hotel operator. Consistent with this deal, the company
intends to divest hotels that no longer fit into its long-term
strategy. Year-to-date the company has sold eight non-core assets
for $15 million.
Besides improving the quality of its portfolio, Supertel
Hospitality intends to increase its liquidity by selling non-core
assets. At the end of third quarter 2012, cash and cash
equivalents stood at $0.6 million.
Based in Norfolk, Nebraska, Supertel Hospitality specializes in
the ownership of select-service hotels. The company currently
owns 93 hotels comprising 8,231 rooms in 23 states.
Supertel Hospitality currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We also have a
long-term Neutral recommendation on the stock. One of its
Ashford Hospitality Trust Inc
) also holds a Zacks #3 Rank.
ASHFORD HOSPTLY (AHT): Free Stock Analysis
SUPERTEL HOSPIT (SPPR): Free Stock Analysis
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