Supertel Hospitality Inc., a Nebraska-based real estate investment trust, on July 25 closed on the sale of a Super 8 hotel in Watertown, SD, for $1.55m.
The company used the proceeds from the sale to retire the mortgage on the property, and the balance went to reduce the company’s short term borrowings.
‘Built in 1977 and acquired by Supertel in 1994, the Watertown Super 8 has long been a solid performer in our portfolio, but due to its age and position along the chain scale spectrum, the asset no longer met our investment criteria,’ said Kelly Walters, Supertel’s President and CEO. ‘The sale was guided by our business plan to divest of economy properties to provide funding for the acquisition of premium-branded select-service hotels in locations with solid demographics.’
The company has taken significant steps to strengthen its balance sheet by paying down approximately $28.3m of debt since the beginning of the year. Year to date, the company has sold seven non-core assets generating gross proceeds of approximately $14m.
No Comments Posted yet
Do you have comments on this?