Back to top

Analyst Blog

Zacks Equity Research

Supertel Hospitality Divests Assets


 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at or call 800-767-3771 ext.  9339.

Supertel Hospitality, Inc. , a real estate investment trust (REIT), recently  announced that it has completed the sale of an 87-room Super 8 hotel in Sedalia, Missourifor $1.8 million. The company utilized the proceeds to repay $1.7 million of associated mortgage debt, while the remainder was used for general corporate purposes.

Additionally, the company divested another Super 8 hotel in Wichita, Kansas, for a total consideration of $4.1 million. The 119-room hotel was purchased by the City of Wichita to facilitate a highway expansion project.  The proceeds generated from the asset sale were utilized to retire the $3.1 million mortgage loan on the property, and the balance was used to reduce the company's short term borrowings.

With the divestiture of the Sedalia Super 8 range of hotels, Supertel Hospitality continued its transition from the economy hotel sector to a more upscale hotel operator. Consistent with this transition, the company intends to divest hotels that no longer fit into its long-term strategy.

During the first quarter 2012, RevPAR (Revenue Par Available Room) for the company’s upper mid-scale hotels increased 10.2 % to $40.11, aided by an 8.8% increase in occupancy.

Based in Norfolk, Nebraska, Supertel Hospitality specializes in the ownership of select-service hotels. The company currently owns 96 hotels comprising 8,467 rooms in 23 states.

Supertel Hospitality currently retains a Zacks #2 Rank, which translates into a short-term Buy rating. We also have a long-term Neutral recommendation on the stock. One of its competitors, Ashford Hospitality Trust Inc (AHT - Snapshot Report)) holds a Zacks #5 Rank, which translates into a short-term Strong Sell rating.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%