Humphrey Hospitality Trust, Inc. (Nasdaq: HUMP) and Supertel Hospitality, Inc. (Nasdaq: SPPR) announced today the completion of the merger of the two companies.
Humphrey Hospitality now owns 88 hotels with over 6,200 rooms in 19 states. The properties are leased to and managed by Humphrey Hospitality Management, Inc. and its wholly owned subsidiary, Supertel Hospitality Management, Inc.
“The combination of Humphrey Hospitality Trust and Supertel Hospitality diversifies our geographic exposure and brand portfolio,” said Paul J. Schulte, Chairman and Chief Executive Officer of Humphrey Hospitality. “We remain focused on the limited-service lodging industry, and the combined company brings even greater resources and expertise to that market.”
“We also expand our market capitalization, which should give us greater liquidity and enhance our ability to acquire properties,” said James I. Humphrey, Vice Chairman, President, and Chief Operating Officer of Humphrey Hospitality. “With the merger, we will be able to increase the use of limited-partnership units to acquire properties in a way that diversifies risk and defers tax consequences for sellers.”
Under the terms of the merger, each outstanding share of Supertel common stock was converted into 1.30 shares of Humphrey Hospitality common stock. Supertel stockholders will shortly receive written instructions for exchanging their stock certificates. Additionally, immediately prior to the merger, Supertel paid its stockholders of record as of September 29, 1999, a cash dividend of accumulated earnings and profits in the amount of $5.13 per share.
Humphrey Hospitality Trust, Inc. is one of the largest real estate investment trusts focused on the limited service lodging industry.