IRSA Affiliate to Increase Investment in Supertel Hospitality to $30 Million
Supertel Hospitality, Inc. (NASDAQ: SPPR), which owns 100 hotels in 23 states, today announced that Real Estate Strategies L.P. will increase its investment in Supertel to $30 million, subject to the approval of Supertel shareholders. RES is an investment vehicle indirectly controlled by IRSA Inversiones y Representaciones Sociedad Anónima ("IRSA"), an Argentinean-based publicly traded company.
As previously announced, Supertel and RES entered into a Purchase Agreement on November 16, 2011 for the issuance and sale of 2,000,000 shares of Supertel's Series C Cumulative Convertible Preferred Stock for $20 million. RES has advised Supertel that it is increasing its investment by exercising its option under the Purchase Agreement to purchase an additional 1,000,000 preferred shares for $10 million.
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