NORFOLK, NB – Supertel Hospitality, Inc. (NASDAQ: SPPR), a real estate investment trust (REIT) which owns 101 hotels in 23 states, announced that it has entered into a purchase agreement for the issuance and sale of convertible preferred stock to Real Estate Strategies L.P. (“the Investor”), an investment vehicle indirectly controlled by IRSA Inversiones y Representaciones Sociedad Anónima (“IRSA”), an Argentina-based company. Subject to the approval of the shareholders of Supertel and IRSA’s satisfaction with certain debt refinancing of Supertel, Supertel will issue and sell two million shares of a newly-created series of preferred stock for $20 million to the Investor. The Investor will also have the option, to be exercised prior to closing, to purchase up to an additional one million of preferred shares for $10 per share.
Supertel President and CEO Kelly Walters (top right photo) welcomed the investment of IRSA into Supertel, “for IRSA has shown an important growth in the last 2 decades and is worldwide recognized for its vision to find companies with high growth potential”.
Eduardo S. Elsztain (lower left photo), Chairman of IRSA, commented: “our investment is a vote of confidence in the direction that Supertel has been pursuing in terms of repositioning its portfolio, improving property level management, and strengthening the company’s balance sheet.
“We expect that with this investment, Supertel will have made significant progress in its ongoing effort to optimize its capital structure to ultimately resume growth and regain the financial flexibility needed to reach its full potential”.
For a complete copy of the company’s news release, please contact:
Ms. Krista Arkfeld
Norfolk, NE 68701
Director of Corporate Communications
402.371.2520
karkfeld@supertelinc.com
Patrick Daly
Account Supervisor
Daly Gray, Inc.
Office: (703) 435-6293
Cell: (703) 300-8289
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