Supertel Hospitality, Inc. Objectives

Our primary objective is to increase shareholder value by improving the operating cash flow of our portfolio.

Acquisition Strategy

• Nationally or regionally franchised hotels
• Hotels within existing geographic clusters
• Situations where we can add value with our operating discipline

Development Strategy

• In urban or resort locations with high demand and low supply
• Locations with strong industrial bases and/ or government installations, colleges and the potential for future growth
• Markets that currently have an aging hotel presence

Internal Growth Strategy

• Improve operating results through: Continuous improvements in, Labor efficiencies, Overall cost controls, Daily rate management
• Increase emphasis on local sales efforts
• Maintain close relationship with management companies to obtain operational efficiencies

Financing Strategy

• Maintain an overall low leverage of 40-55% of long-term debt to investments in hotel properties
• Obtain an initial 60 -75% leverage on acquisitions through the use of revolving credit facilities and new borrowings