Supertel Hospitality Names Jeffrey W. Dougan Chief Operating Officer

Supertel Hospitality

, a real estate investment trust (REIT) which currently owns 75 hotels comprising 6,474 rooms in 21 states, today announced that Jeffrey W. Dougan has joined the company as chief operating officer. He will replace Steven C. Gilbert who will provide continuity during the transition and retire at year-end. In his new role, Dougan will be responsible for overseeing the REIT's third-party management companies, as well as maintaining positive brand relationships with current and future brand families. As a member of the senior management team, he will play a key role in the strategic decisions involving the repositioning of the company. "Steve has devoted nearly a quarter century to building and maintaining what today is Supertel, beginning before the company went public," said Kelly A. Walters, Supertel president and CEO. "We appreciate all the work he has done over his tenure with the company and his willingness to help make the transition a seamless one. "Jeffrey's extensive hospitality background, particularly in the upscale segment, makes him an ideal choice to help lead Supertel as it continues its portfolio transformation to premium-branded, select-service hotels," Walters noted. "His extensive operations experience will give us added bench strength in this critical area. He has a thorough understanding of the renovation/construction process and a well-established relationship with the leading hotel brands. He also brings a seasoned eye in helping us evaluate future acquisitions." A hospitality veteran of more than 25 years, Dougan most recently was vice president of operations for Stonebridge Hospitality, where he oversaw a diverse hotel portfolio featuring eight different hotel brands in a variety of segments. He has held a number of industry positions with leading companies, including vice president of operations at Sage Hospitality Resources, area operations manager at the Homestead Village in Colorado and New Mexico, and general manager at the Grand Aspen Hotel and the Dillon Comfort Suites, both in Colorado. Dougan received his Bachelor of Science degree in Business Administration from the Rochester Institute of Technology. The company granted stock options and restricted stock to Dougan. The stock options and restricted stock were granted as an inducement material to Dougan's acceptance of employment with the company in accordance with Nasdaq Listing Rule 5635(c)(4), which, under such circumstances, provides an exception to the stockholder approval requirements and allows for the grant of the stock option and restricted stock to be made outside the company's shareholder-approved stock plan. The stock options and restricted stock were approved by the compensation committee of the board of directors, which is comprised solely of independent directors. Mr. Dougan's restricted stock award is for 25,000 shares and the shares become non-forfeitable and fully vested in equal one-third increments on July 15, 2014, 2015 and 2016 provided that he is employed by the company on each such vesting date. The stock options entitle Dougan to purchase 25,000 shares of the company's common stock, at an exercise price of $1.01. The stock options have a four-year term and vest in equal one-third increments on July 15, 2014, 2015 and 2016 provided that he is employed by the company on each such vesting date. The stock options and restricted stock will become fully vested in the event of a change of control of the company or upon Mr. Dougan's death or disability. About Supertel Hospitality, Inc. Supertel Hospitality, Inc.

is a self-administered real estate investment trust that specializes in the ownership of select-service hotels. The company currently owns 75 hotels comprising 6,474 rooms in 21 states. Supertel's hotels are franchised by a number of the industry's most well-regarded brand families, including Hilton, Choice and Wyndham. For more information or to make a hotel reservation, visit www.supertelinc.com. Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These risks are discussed in the company's filings with the Securities and Exchange Commission.