Supertel Hospitality, Inc.
), a real estate investment trust (REIT), recently announced the
refinancing of debt through a new loan of $30.6 million. The loan
bears a fixed annual interest of 5.83% over an 18-year
The new loan is secured by 22 hotels. Proceeds from the loan have
been utilized to pay the company's debt with Greenwich Capital
due in December 2012. This repayment enables the company to
continue with its next phase of portfolio repositioning efforts
through the divestiture of non-strategic assets and investment in
premium-branded select-service hotels.
Moving forward, Supertel Hospitality intends to strengthen its
liquidity and improve its financial flexibility through the asset
sale transactions. With this transaction, the company's debt
service obligations will decline by approximately $1.1 million
annually. Ten hotels which were previously secured for the
Greenwich Capital loan are now unencumbered, leading to
additional financing and sale opportunities for the company in
Earlier in October 2012, Supertel Hospitality had obtained a
$6.15 million loan with Cantor Commercial Real Estate, secured by
the 100-room Hilton Garden Inn in Solomons Island (Dowell),
Maryland. The proceeds were utilized to fund future acquisitions.
Based in Norfolk, Nebraska, Supertel Hospitality primarily owns
select-service hotels. Presently, the company owns 94 hotels
comprising 8,283 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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