Supertel Hospitality, Inc. (NASDAQ: SPPR), a real estate investment trust (REIT), announced that it has closed on the sale of eight hotels with an aggregate of 840 rooms in the second quarter of 2013.
Combined proceeds from the sales totaled $10.3 million which were used by Supertel to reduce balances on the company’s credit facilities.
The hotels sold in the second quarter of 2013 consist of:
- The 40-room Super 8 hotel in Fort Madison, Iowa sold on April 18, 2013 for $1.05 million. The hotel was built in 1989 and Supertel purchased the hotel in January 1995.
- The 151-room Masters Inn in Tuscaloosa, Alabama sold on May 1, 2013 for $1.7 million. The hotel was built in 1974 and Supertel purchased the hotel in May 2007.
- The 128-room Masters Inn in Garden City, Georgia sold on May 21, 2013 for $1.5 million. The hotel was built in 1982 and Supertel purchased the hotel in May 2007.
- The 40-room Super 8 hotel in Pella, Iowa sold on May 23, 2013 for $0.725 million. The hotel was developed by Supertel in March 1990.
- The 150-room Masters Inn in Charleston, South Carolina sold on June 21, 2013 for $1.18 million. The hotel was built in 1983 and Supertel purchased the hotel in May 2007.
- The 112-room Masters Inn in Cayce (Columbia/I-26), South Carolina sold on June 24, 2013 for $1.15 million. The hotel was built in 1980 and Supertel purchased the hotel in May 2007.
- The 63-room Super 8 hotel in Columbus, Nebraska sold on June 24, 2013 for $1.2 million. The hotel was part of the original portfolio developed by Supertel and opened in December 1981.
- The 156-room Days Inn in Fredericksburg (South), Virginia sold on June 27, 2013 for $1.8 million. The hotel was built in 1973 and Supertel purchased the hotel in April 2007 as part of a six hotel portfolio.
“An orderly repositioning of Supertel is well underway as the company has thinned out the portfolio by monetizing many of the assets that were not contributing meaningfully to the firm’s profitability,” said Kelly Walters, Supertel’s president and chief executive officer. “Our recent sales illustrate the progress we are making toward achieving key initiatives, including reducing the average age of the hotel portfolio and transitioning away from non-core, economy properties.”
Year to date the company has sold ten non-core assets generating gross proceeds of approximately $13.6 million. Supertel’s business plan calls for the orderly divesture of certain economy hotels over the near to intermediate term to provide funding for the acquisition of upper-scale, select-service hotels.
Supertel Hospitality, Inc. (NASDAQ: SPPR) is a self-administered real estate investment trust that specializes in the ownership of select-service hotels. The company currently owns 76 hotels comprising 6,591 rooms in 21 states. Supertel’s hotels are franchised by a number of the industry’s most well-regarded brand families, including Hilton, Choice and Wyndham.