Server: Microsoft-IIS/3.0 Date: Fri, 19 Dec 1997 01:59:38 GMT Content-Type: text/html Accept-Ranges: bytes Last-Modified: Mon, 17 Nov 1997 23:00:44 GMT Content-Length: 6529 Supertel Company Fact Sheet - Press Releases

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Company Fact Sheet
August 1997

309 North 5th Street
P.O.Box 1448
Norfolk, NE 68702-1448
(402) 371-2520
Fax (402) 371-4229

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SUPERTEL ANNOUNCES THIRD QUARTER 1997 RESULTS; NET INCOME UP 35 PERCENT

     NORFOLK, Neb. - October 23, 1997 - Supertel Hospitality, Inc. (NASDAQ: SPPR) reported a 27.1 percent increase in operating income on a 17.7 percent gain in revenues for the third quarter, ended September 30, 1997.  Net income was $1.7 million, or 36 cents per share, compared to $1.3 million, or 26 cents per share, in the third quarter of 1996, an increase of 35.1 percent in net income.

     Total revenues increased to $13.5 million for the third quarter of 1997 from $11.4 million in the year-ago period.  Operating income for the period was $4.0 million in 1997 compared to $3.2 million in the third quarter of 1996.  Earnings before interest, taxes and depreciation (EBITDA) were $5.1 million and $4.0 million for the third quarter of 1997 and 1996, respectively, an increase of 26.0 percent.

     "Continuing the trend established in the second quarter of 1997, we again experienced very strong year-over-year revenue and income comparisons in the third quarter,"  said Paul J. Schulte, president and CEO of Supertel Hospitality, Inc.  "Of particular note was the 8.8 percent gain in revenue per available room (REVPAR) and the 1.3 percentage point increase in the occupancy rate- the first year-over-year improvement in occupancy in two years."

     The company credited much of its improved performance to the successful introduction of an open-book management system, which gives managers more responsibility and accountability at the property level.  "By sharing property-level P&L statements with our managers and making everyone part of the drive to improve motel operating income, we are seeing improvements in this critical measure of success," stated Schulte.

     For the third quarter of 1997, total occupancy increased to 72.7 percent from 71.4 percent for the same period in 1996.  For seasoned properties (those owned/operated for over one year), occupancy was 73.8 percent for the third quarter of 1997 versus 75.6 percent for the year-ago period.  Over the same period, the average daily room rate (ADR) increased to $45.71 from $42.81, an increase of 6.8 percent.  The result was an 8.8 percent gain in REVPAR to $33.25 for the third quarter of 1997 from $30.55 for the third quarter of 1996.

     During the third quarter of 1997, Supertel opened its second Wingate Inn, a 101-room property near the Bush Intercontinental Airport in Houston, Texas.  At the end of the third quarter, the company's room count totaled 4,460, up 7.3 percent from 4,156 at year-end 1996.

     For the first nine months of 1997, revenues increased 23.7 percent to $34.8 million from $28.2 million for the year-ago period.   Operating income was $8.8 million compared to $7.1 million, an increase of 24.8 percent.  Net income was $3.3 million, or 68 cents per share, and $2.8 million, or 57 cents per share, for the first nine months of 1997 and 1996, respectively.

     Supertel Hospitality, Inc. owns and operates limited-service motel properties under the Super 8, Comfort Inn and Wingate Inn names.   The company has 62 motels, primarily in the Midwest and Texas.

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