Supertel Hospitality Divests Asset - Analyst Blog
November 20 2012 - 7:00AM
Zacks
Supertel Hospitality,
Inc. (SPPR), a real estate investment trust (REIT),
recently announced that it has completed the sale of a
52-room Super 8 hotel in Antigo, Wisconsin for $1.0 million to an
undisclosed buyer. The company utilized the proceeds to repay the
associated mortgage debt on the property.
Supertel Hospitality continues to reposition its portfolio through
the disposal of non-strategic assets and acquisition of
high-quality properties. During the third quarter of 2012, the
company sold Super 8 hotel in Watertown, South Dakota for $1.55
million. The proceeds were utilized to retire debt and for general
corporate purposes. Additionally the company also entered
into an agreement to purchase a 116-room TownePlace Suites in
suburban Des Moines (Urbandale), Iowa for $10.2 million and
expanded its upper-to-mid-scale portfolio.
Over the past few quarters, Supertel Hospitality has continued with
its transition from the economy hotel sector to a more upscale
hotel operator. Consistent with this deal, the company intends to
divest hotels that no longer fit into its long-term strategy.
Year-to-date the company has sold eight non-core assets for $15
million.
Besides improving the quality of its portfolio, Supertel
Hospitality intends to increase its liquidity by selling non-core
assets. At the end of third quarter 2012, cash and cash equivalents
stood at $0.6 million.
Based in Norfolk, Nebraska, Supertel Hospitality specializes in the
ownership of select-service hotels. The company currently owns 93
hotels comprising 8,231 rooms in 23 states.
Supertel Hospitality currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We also have a long-term
Neutral recommendation on the stock. One of its competitors,
Ashford Hospitality Trust Inc (AHT) also holds a
Zacks #3 Rank.
ASHFORD HOSPTLY (AHT): Free Stock Analysis Report
SUPERTEL HOSPIT (SPPR): Free Stock Analysis Report
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