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Supertel Hospitality Divests Asset
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.