NORFOLK, NE -- (Marketwire) -- 09/24/12 -- Supertel Hospitality, Inc. (NASDAQ: SPPR), a real estate investment trust (REIT) which currently owns 94 hotels in 23 states, today announced that it has entered into an agreement to acquire the TownePlace Suites, located in Johnston (Urbandale), Iowa for a purchase price of $10.2 million, excluding closing costs and fees. The 116-room studio-suite hotel opened in December 2007, and features four unique one and two bedroom floor plans that cater to an extended-stay guest with separate living and sleeping areas, home office with complimentary high-speed wireless Internet, and fully equipped kitchen. In addition, the hotel includes 1,000 square feet of function space, a fitness area, and indoor pool. The hotel is ideally located off I-80, minutes from downtown Des Moines, and nearby multiple national corporations, popular shopping, dining, recreation, and entertainment areas.
"We are pleased to announce the planned acquisition of the 116-room Marriott TownePlace Suites in Urbandale, Iowa as it aligns perfectly with our investment strategy to recycle capital into premium-branded, select-service hotels, focusing our efforts on a reasonably narrow group of strong franchisors and markets," said Kelly Walters, Supertel's president and chief executive officer. "This extended-stay hotel investment will represent the first property in our portfolio to carry a Marriott flag. The hotel, which is situated at an exit along the Interstate 80 corridor, garners a share of the area's transient business as well as business from the corporate communities of Urbandale, Johnston, and West Des Moines."
The acquisition will be funded with available capital and financing. The completion of the acquisition is subject to customary closing conditions. Supertel expects the closing to occur in the fourth quarter of 2012.
About Supertel Hospitality, Inc.
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 94 hotels comprising 8,283 rooms in 23 states. Supertel's hotels are franchised by a number of the industry's most well-regarded brand families, including Hilton, IHG, Choice and Wyndham. For more information or to make a hotel reservation, visit www.supertelinc.com.
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