NORFOLK, NEBRASKA Supertel Hospitality Inc. is adopting a strategy of assigning third-party managers of its hotels on a regional basis, signing three companies to oversee 95 properties.
The REIT has signed agreements with Hospitality Management Advisors Inc., Strand Development Co. LLC and Kinseth Hotel Corp. A fourth company, HLC Hotels Inc., will continue to manage Supertel’s 10-property Masters Inns portfolio.
“Like all real estate, hotels are a local business, and this strategic move from centralized management to a regional approach with operators who have a long-term track record in those markets is expected to generate higher returns through better knowledge of our markets,” says Supertel President and CEO Kelly Walters. “Each of these operators has similar experience and a proven record of success and has been recognized for award-winning performance. They also have the development and acquisition experience we seek to assist us when we return to our acquisition strategy. All of these operators have management portfolios similar to Supertel’s targeted profile of premium select-service brands as the company continues to transition over time to a more upmarket portfolio.”
Memphis, Tennessee-based Hospitality Management Advisors will operate 25 hotels in Arkansas, Louisiana, Tennessee, Kentucky, Indiana, Virginia and Florida. Strand Development, headquartered in Myrtle Beach, South Carolina, will operate Supertel’s seven Savannah Suites hotels, as well as 17 additional properties located in Georgia, Delaware, Maryland, North Carolina, Pennsylvania, Tennessee, Virginia and West Virginia. Kinseth, based in North Liberty, Iowa, will manage 46 Supertel properties in eight U.S. states, primarily in the Midwest.