Supertel Hospitality Signs Agreement to Acquire Three Premium-Branded Hotels

Supertel Hospitality, Inc.

, a real estate investment trust (REIT), announced today that it has signed agreements to acquire three, premium-branded hotels in an off-market transaction for $42.5 million. The properties are the 116-room SpringHill Suites by Marriott, San Antonio, Texas, the 142-room Hotel Indigo adjacent to the Hartsfield-Jackson Atlanta International Airport in Atlanta, Georgia, and the 120-room Courtyard by Marriott in Jacksonville, Florida. The acquisitions are subject to completion of satisfactory due diligence and financing. The transactions are expected to close in 2015 during the third quarter and are projected to be accretive to 2015 fourth quarter results. Changes Name to Condor Hospitality The company has changed its name from Supertel Hospitality, Inc. to Condor Hospitality Trust, Inc. Upon the completion of Nasdaq procedures, the company's common stock trading symbol will change from SPPR to CDOR. The trading symbol for the company's Series A preferred stock will change from SPPRP to CDORP and the trading symbol for the company's Series B preferred stock will change from SPPRO to CDORO. "The acquisition of these three hotels aligns perfectly with the new strategy underway at the company and creates a great opportunity for us to announce the renaming of the company to Condor Hospitality," said Bill Blackham, Condor Hospitality's CEO. "The name Supertel connotes economy and midscale hotels, segments that are no longer part of our future plans, which was an important part of the consideration behind renaming the company. The recently announced prospective acquisitions and the new name are consistent with the dynamic new direction for the company. "The Condor is a highly respected bird known for its considerable strength, tenacity and long life, traits that exemplify what we strive to be as a company -- a respected industry leader in the premium, select-service, extended-stay and limited service hotel segments operated under high quality, contemporary brands." "As previously announced, we have accelerated capital recycling through disposition of much of our economy and economy extended-stay hotel portfolio which has an average age of 30 years and in many cases is located in tertiary markets," he noted. "We intend to reinvest the capital from those dispositions into a higher quality, significantly newer, upscale portfolio of hotels in order to drive increased shareholder value." Blackham said that the hotels under contract are a window into the company's portfolio of the future. Condor's acquisition profile will be hotels located primarily in the 20(th) through 50(th) MSAs. The hotels under contract are located in Atlanta, the country's 8(th) largest MSA; San Antonio, the 25(th) ; and Jacksonville, the 40(th) . Targeted hotels are expected to have an average investment in the $15 to $20 million range with an average age of 10 years or less. He also pointed out that this off market acquisition is the result of one of several evolving strategic alliances with highly competent management companies, in this case Peachtree Hotel Group and its affiliate Peachtree Hospitality Management ("PHM"). PHM is a Georgia based hotel property management company currently operating 27 hotel properties with more than 3,000 hotel rooms. It is an approved operator of the major, premium hotel brands including Marriott, Starwood, InterContinental, Hilton, Hyatt, Choice and Wyndham. "Condor is in a state of transition, divesting older properties in the economy segment and investing in newer, contemporary hotels to create a significantly larger hospitality REIT comprised of a higher quality portfolio with greater margins and located in markets with better fundamentals," he said. "We will remain highly disciplined in our acquisition investment strategy, continuously review our portfolio and, when appropriate, upgrade into properties that we believe will generate more attractive returns. Brand considerations will be important in our portfolio because brand relevancy is critical to meeting evolving guest preferences, particularly the increasingly important Millennial generation.