This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.  Find out more here  Close
Hotel News Now has updated its Privacy Policy to reflect changes in its disclosure of information to third parties. You can view the revised Privacy Policy at http://www.hotelnewsnow.com/home/privacy.
Supertel no longer at risk of Nasdaq delisting
February 27 2012

The $30-million investment in Supertel Hospitality by an Argentinean real-estate company has pushed Supertel’s stock over $1 per share, and the company is no longer in violation of Nasdaq’s minimum closing bid price rule.

Highlights
  • Supertel Hospitality received a Nasdaq notice in September that the real-estate investment trust’s stock price had closed below $1 per share for 30 consecutive days, a violation of Nasdaq listing requirements.
  • “We believe the IRSA investment was clearly the most important contributing factor in the recent price increase of our common and preferred stock,” Kelly A. Walters, Supertel’s president and CEO, said in an email.
  • Supertel is embarking on a new strategy of buying midscale and upper-midscale properties.

NORFOLK, Nebraska—The investment in Supertel Hospitality by an Argentinean real-estate company has lifted Supertel’s stock back above the $1 per share threshold and out of danger of a Nasdaq delisting.

Supertel in September received a notice from Nasdaq that its stock price closed below $1 per share for 30 consecutive days, a violation of listing requirements.

But after its stock price closed above $1 for 10 consecutive business days earlier this month, the real-estate investment trust was informed by Nasdaq it was no longer in violation of the minimum closing bid price rule. 

One factor in lifting the stock was the $30-million investment made in the company by Real Estate Strategies LP, an investment arm of Inversiones y Representaciones Sociedad Anónima. The deal was approved by Supertel’s shareholders in January. IRSA now owns 34% of Supertel.

“We believe the IRSA investment was clearly the most important contributing factor in the recent price increase of our common and preferred stock,” Supertel’s president and CEO Kelly A. Walters said via email. “IRSA is widely respected in the capital markets for their investment acumen and track record of success, and we believe that some of the interest in the stock following the transaction’s closing was a function of investors seeking to coattail on IRSA’s ideas.”

Supertel’s stock this month reached a high at close of $1.31 per share on 14 February. The stock’s 52-week high is $1.88 per share. The company’s stock price closed Friday at $1.03 per share.

Walters added: “We believe that over the long run the stock price is a byproduct of how well the organization is being managed, so our focus is on the company—not the share price. The market will place the proper valuation on the company’s shares once we have achieved the full benefit of our turn-around plan.”

Supertel is embarking on a new strategy of buying midscale and upper-midscale properties. Supertel historically has been an acquirer of economy hotels. During the past three years, the REIT has sold approximately 25 hotels and now has 99 properties in its portfolio.

COMMENTS   Show All
Login or enter a name   Post Your Comment  Check to follow this thread via email alerts (must be logged in)
(4000 characters max)

Comments that include links or URLs will be removed to avoid instances of spam. Also, comments that include profanity, lewdness, personal attacks, solicitations or advertising, or other similarly inappropriate or offensive comments or material will be removed from the site. You are fully responsible for the content you post. The opinions expressed in comments do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Please report any violations to our editorial staff

TRENDING
4 takes on Starwood’s new Tribute soft brand
Millennials leading multigenerational travel
What Booking.com parity play means for hotels
Aron Q&A: What’s next for Starwood
Booking.com to amend rate parity in Europe
How to grow from 0 to 122 hotels in 11 months
VIDEO
ARC Trust’s growth has endgame in mind
Smooth sailing so far in ABF migration
Charlestowne sees rising tide for indies
Video: Hunter Conference Day One recap
Video: Hunter Conference Day Two recap
LATEST NEWS
5 things to know about March performance
Freitag's 5: Is sustained supply growth here?
5 fascinating guest satisfaction facts
Can hoteliers and disruptors work together?
How to raise hotel rates—at any rate
CEO: New name lifts Value Place image
Contact Us
Hotel News Now
18500 Lake Rd.
Suite 310
Rocky River, Ohio 44116
        
Copyright © 2004 - 2015 Hotel News Now, a division of STR, Inc. All Rights Reserved.   Privacy