(By Balaseshan) Supertel Hospitality Inc. (NASDAQ:SPPR) said it has agreed to buy Marriott TownePlace Suites, located in Johnston (Urbandale), Iowa for a purchase price of $10.2 million.
The acquisition will be funded with available capital and financing. The purchase price of $10.2 million excludes closing costs and fees.
"We are pleased to announce the planned acquisition of the 116-room Marriott TownePlace Suites in Urbandale, Iowa as it aligns perfectly with our investment strategy to recycle capital into premium-branded, select-service hotels, focusing our efforts on a reasonably narrow group of strong franchisors and markets," said Kelly Walters, chief executive of Supertel.
The 116-room studio-suite hotel opened in December 2007, and features four unique one and two bedroom floor plans that cater to an extended-stay guest with separate living and sleeping areas, home office with complimentary high-speed wireless Internet, and fully equipped kitchen.
In addition, the hotel includes 1,000 square feet of function space, a fitness area, and indoor pool. The hotel is ideally located off I-80, minutes from downtown Des Moines, and nearby multiple national corporations, popular shopping, dining, recreation, and entertainment areas.
The company said the hotel, which is situated at an exit along the Interstate 80 corridor, garners a share of the area's transient business as well as business from the corporate communities of Urbandale, Johnston, and West Des Moines. Supertel expects the closing of the acquisition to occur in the fourth quarter of 2012.
SPPR is trading up 0.93% at $1.09 on Monday. The stock has been trading between $0.60 and $1.35 for the past 52 weeks.