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Supertel Acquires Hotel in lowa
Supertel Hospitality, Inc. ), a real estate investment trust (REIT), recently announced that it has entered into an agreement to acquire the TownePlace Suites hotel in Johnston (Urbandale), Iowa, for $10.2 million. The transaction will be funded with available capital and financing and is expected to close in the fourth quarter of 2012.
The 116-room hotel includes studio-suites with four unique one and two-bedroom floor plans meant for extended stay. The rooms feature separate living and sleeping areas, home office with complimentary wireless Internet, and a fully equipped kitchen. The hotel also showcases 1,000 square feet of meeting space, fitness area, and pool.
The strategic move to acquire the hotel is in line with Supertel Hospitality's policy of recycling capital into upscale-branded hotels in strong markets. The deal is expected to provide long-term earnings growth to its shareholders through opportunistic investment. TownePlace Suites is located in close proximity to downtown Des Moines and at an exit of the Interstate 80 highway. Consequently, the hotel is in a perfect position to benefit from corporate houses in the region as well as other transient businesses.
Earlier in the second quarter of 2012, revenue per available room (RevPAR) for the company’s 21 continuing operations, involving upper mid-scale hotels, increased 4.9% backed by a 2.4% increase in occupancy.
Supertel Hospitality specializes in the ownership of select-service hotels. Presently, the company owns 94 hotels comprising 8,283 rooms in 23 states.
Supertel Hospitality currently retains a Zacks #4 Rank, which translates into a short-term Sell 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 #3 Rank, which translates into a short term Hold rating.