Supertel Hospitality, Inc., a real estate investment trust (REIT) which owns 103 hotels in 23 states, closed on the sale of its Tara Inn in Jonesboro, GA on May 27, 2011 for $1.85 million. The 127 room independently flagged extended stay hotel was purchased in 2007 and was no longer classified as a core asset of the company as it has not met the firm’s long-term return criteria, and it lacked a national brand affiliation. Supertel used $1.6 million of the proceeds to satisfy the mortgage on the property held by Great Western Bank in Omaha.
“With the sale of the Tara Inn, Supertel has taken another important step toward reconfiguring the portfolio and strengthening our balance sheet by monetizing an asset which no longer fit into our updated strategic plan. The recent and projected financial performance of this non-branded hotel simply did not support retaining the property in our portfolio for the long-term,” said Kelly A. Walters, Supertel’s president & CEO.