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.
ASHFORD HOSPTLY (AHT): Free Stock Analysis
SUPERTEL HOSPIT (SPPR): Free Stock Analysis
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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.