Supertel Hospitality, Inc. ( SPPR ), 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 competitors, Ashford Hospitality Trust Inc ( AHT ) also holds a Zacks #3 Rank.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
