News for the Hospitality Executive
Supertel Hospitality Enters Agreement to Acquire the 100-room
Hilton Garden Inn
NORFOLK, NE--(Apr 2, 2012) - Supertel Hospitality, Inc. (
"This Hilton Garden Inn is a stabilized first generation, premium select-service hotel, and is an especially meaningful purchase for Supertel as it represents the beginning of the next phase of our plan to move the company methodically up the chain scale spectrum," said Kelly Walters, Supertel's president and chief executive officer. "This particular upscale property has been superbly managed and maintained by Cherry Cove Hospitality Management, LLC since it opened and we plan to retain the managers who made it a success. This is our second hotel in this area and we know this market to be one that possesses a diverse group of consistent demand generators augmented by one of the strongest median household incomes in the country."
The purchase price of $11.5 million represents a forward capitalization rate of approximately 9.0 to 9.5 percent. Supertel expects to fund the purchase with capital from its recent preferred equity raise coupled with a conservative amount of fixed rate financing on a five to ten year term.About Supertel Hospitality, Inc.
As of April 2, 2012, Supertel Hospitality, Inc. (
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These risks are discussed in the company's filings with the Securities and Exchange Commission.
Ms. Krista Arkfeld
Director of Corporate Communications
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