Supertel Acquires 20 Hotels
2nd Qtr 2007 for $79.6 million
NORFOLK, NE, August 13, 2007. Supertel Hospitality, Inc. (NASDAQ: SPPR), a real estate investment trust (REIT) which owns 115 hotels in the limited-service, economy and economy extended-stay sectors, today announced results for the second quarter ended June 30, 2007.
Revenues in the 2007 second quarter improved 53.2 percent to $30.8 million, compared to the same period a year earlier. Net income available to common shareholders rose 65.9 percent to $2.2 million, or $0.11 per fully diluted share, for the 2007 second quarter, compared to $1.3 million, or $0.11 per fully diluted share, for the like 2006 period.
Funds from operations (FFO) available to common shareholders increased 53.2 percent to $5.2 million, or $0.24 per diluted share, compared to $3.4 million, or $0.25 per diluted share, for the same quarter of 2006. The diluted weighted average number of shares outstanding for the two quarters were 22,355,529 and 14,756,910, respectively.
Earnings before interest, taxes, depreciation and amortization (EBITDA) advanced 56.7 percent to $9.4 million in the 2007 second quarter, up from $6.0 million for the same year-ago period. The improvement in all of these metrics was primarily attributable to the addition of 38 hotels to the company's portfolio since the close of the 2006 first quarter.
"We have added a substantial number of properties, 20 in the second quarter alone, and are assimilating them rapidly into our portfolio," said Paul J. Schulte, chairman, president and CEO of Supertel Hospitality, Inc. "We are beginning to see the benefits of our buying power in insurance, benefits and other expenses related to these assets. We expect these acquisitions to follow our historic pattern of becoming accretive within the initial 12 months of our ownership, as we take advantage of our economies of scale and integrate them into our operating systems."
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