Combined net proceeds from the sales totaled $3.02 million, which were used by Supertel to reduce balances on the company’s credit facilities.
“When we charted a new strategic direction for our company last year, our first step was to evaluate our portfolio to determine which assets had strategic long-term value that would provide an appropriate return on investment and monetize those assets that did not meet our criteria,” said Kelly Walters, Supertel’s President and CEO.
"We have received interest in several of these assets but financing remains difficult to obtain for many potential buyers. As the economy and hotel industry continue to recover, we expect financing to improve.”
The three sold unencumbered assets include:
· The Super 8 hotel in Kingdom City, Missouri (top left photo) sold on June 11, 2010 for $1.25 million. The 60-room hotel was purchased in 1989 and was no longer classified as a core asset of the company primarily due to the age and size of the property.
· The Masters Inn hotel in Cave City, Kentucky (middle right photo) sold on June 30, 2010 for $825,000. The 97-room motel was acquired as part of a portfolio in 2008 and was sold primarily due to the property’s age and design.
· The Super 8 hotel in Parsons, Kansas (lower left photo) sold on July 2, 2010 for $1.1 million. The 48-room hotel was purchased in 1996 and was divested primarily due to the property’s size and deteriorating market fundamentals.
Contacts:
Ms. Connie Scarpello, Supertel Hospitality, Inc., Sr. Vice President & CFO, http://www.supertelinc.com/, 402.371.2520
Media: Jerry Daly,703.435.6293, jerry@dalygray.com; Carol McCune, carol@dalygray.com
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