Supertel Hospitality, Inc. Announces Sale of Lenexa, Kansas Super 8 for $2.1 Million

NORFOLK, NE–(Marketwire – October 26, 2010) –  Supertel Hospitality, Inc. (NASDAQ: SPPR), a real estate investment trust (REIT) which owns 107 hotels in 23 states, announced that it closed on the sale of a 101 unit Super 8 hotel in Lenexa, Kansas for a purchase price of $2.1 million. Net proceeds were used to reduce company debt.

“We recently reclassified the Lenexa Super 8 asset as a non-core holding in our portfolio and decided to monetize the asset because it no longer met our investment criteria and our return expectations,” said Kelly Walters, Supertel’s President and CEO. “The sale of this asset and the resulting debt reduction should again serve to demonstrate to our investors that we are committed to our business plan which calls for continued balance sheet improvement by shedding underperforming assets.”

About Supertel Hospitality, Inc.

As of October 26, 2010, Supertel Hospitality, Inc. (NASDAQ: SPPR) owns 107 hotels comprised of 9,473 rooms in 23 states. The company’s hotel portfolio includes Super 8, Comfort Inn/Comfort Suites, Hampton Inn, Holiday Inn Express, Supertel Inn, Days Inn, Ramada Limited, Guest House Inn, Sleep Inn, Savannah Suites, Masters Inn, Key West Inns and Baymont Inn. This diversity enables the company to participate in the best practices of each of these respected hospitality partners. The company specializes in limited service hotels, which do not normally offer food and beverage service. For more information, 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.