Back to top

Analyst Blog

Supertel Hospitality, Inc. , a real estate investment trust (REIT), recently announced that it has completed the sale of a 64-room Comfort Suites hotel in Dover, Delaware, for $1.9 million to an undisclosed buyer. The company intends to utilize the proceeds to fund future growth and for general corporate purposes.

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.

At the same time, Supertel Hospitality is focusing more on strengthening its balance sheet. Besides improving the quality of its portfolio, Supertel Hospitality intends to increase its liquidity by selling non-core assets. Year-to-date, the company has sold nine hotels for $16.9 million. Supertel Hospitality continues to reposition its portfolio through the disposal of non-strategic assets and acquisition of high-quality properties.

Earlier in 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-mid-scale portfolio.

Based in Norfolk, Nebraska, Supertel Hospitality specializes in the ownership of select-service hotels. The company currently owns 92 hotels comprising 8,167 rooms in 22 states.

Supertel Hospitality currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We also have a long-term Outperform recommendation on the stock. One of its competitors, Ashford Hospitality Trust Inc (AHT - Snapshot Report) also holds a Zacks #3 Rank.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

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 Zacks.com. 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
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%