Supertel Hospitality Reports 2009 Second Quarter Results

NORFOLK, NE--(Marketwire - August 6, 2009) - Supertel Hospitality, Inc. (NASDAQ: SPPR), a real estate investment trust (REIT) which owns 120 hotels in 24 states, today announced results for the second quarter ended June 30, 2009.

Revenues from continuing operations for the 2009 second quarter declined 12.3 percent to $27.9 million, compared to the 2008 second quarter. Net income attributable to common shareholders in the 2009 second quarter was $0.9 million, or $.04 per fully diluted share, compared to $1.9 million, or $0.09 per diluted share, in the 2008 second quarter.

Funds from operations (FFO) in the 2009 second quarter was $3.5 million, or $0.16 per diluted share, compared to $5.6 million or $0.26 per diluted share in the 2008 second quarter. Adjusted earnings before interest, taxes, depreciation and amortization, non-controlling interest and preferred stock dividends (Adjusted EBITDA) decreased 16.6 percent to $8.2 million, compared to the 2008 second quarter.

Second Quarter Highlights

-- Continued to outperform the hotel industry in revenue per available room (RevPAR) with a decline of 12.2 percent, compared to an industry-wide decline of 19.5 percent, according to Smith Travel Research data. -- Completed the disposition of one hotel, resulting in a net gain of approximately $1.1 million, while as of June 30, 2009, six additional properties are being marketed for sale.

Operating Results

"Consistent with the trends in the economy and our industry, Supertel experienced another challenging quarter," said Kelly A. Walters, Supertel's president and chief executive officer. "Nevertheless, we are encouraged about how our portfolio has performed relative to the competition. During the second quarter, Supertel reported a 12.2 percent decline in RevPAR which compares well to the industry-wide decrease of 19.5 percent, according to Smith Travel Research data. Nearly all of our RevPAR decline was due to a 9.1 percent drop in occupancy, and our average daily room rate (ADR) declined by only 3.5 percent while the industry as a whole experienced a 9.7 percent decrease in ADR. Despite our strong relative statistical performance, the management team is not satisfied with our results, and we remain committed to improving our operating results over the remainder of the year.

"Our managers again proved to be successful at procuring new sources of business, but the entire industry is pursuing the same tactic, which has forced room rates lower for everyone in our competitive set," he said. "Given the difficult operating environment, we believe our operators are competing well in the search for new business."

Walters continued, "Although occupancy softness is being felt throughout the industry, there seems to be ample anecdotal evidence that a turnaround is not far off. Our seasoned team of general managers indicate that the attitudes of our guests and prospective guests seem to be more positive than in the previous few quarters, but we have not yet seen the impact of improved attitudes in the occupancy numbers. We know this down cycle will end, but we are uncertain as to when the upturn will officially begin."

RevPAR for the company's 77 same store economy hotels, which account for about two-thirds of the same store portfolio, declined 12.0 percent, compared to a 16.1 percent decline for the segment, according to Smith Travel Research. Average daily rate (ADR) declined 2.1 percent, and occupancy was off 10.2 percent. RevPAR for the company's 30 same store midscale without food and beverage properties declined 14.4 percent, compared to 16.5 percent for the segment, with ADR down 4.4 percent and occupancy off 10.5 percent. The company's eight extended-stay properties reported a 2.5 percent decline in RevPAR, occupancy remained essentially flat at 65.0 percent and ADR dropped 1.7 percent.

Revenues from continuing operations for the 2009 second quarter decreased $3.9 million or 12.3 percent to $27.9 million, compared to the 2008 second quarter. Lower occupancy was attributable to unfavorable economic conditions. Hotel and property operations expense from continuing operations for the 2009 second quarter decreased $1.9 million, or 8.6 percent, to $19.9 million, compared to the 2008 second quarter. The decline resulted primarily from lower occupancy levels, with payroll expense down $0.4 million, hotel franchise related expenses down $0.5 million, room and office supplies down $0.3 million, utilities expense down $0.2 million, management fees down $0.2 million, and miscellaneous expenses down $0.3 million.

Interest expense from continuing operations did not experience a material change, compared to the year-ago period. Depreciation and amortization expense from continuing operations increased $0.1 million for the 2009 second quarter, compared to the year-ago period. This is primarily related to capital expenditures made on the hotels. The general and administrative expenses from continuing operations for the same period did not change materially.

Property operating income (POI), defined as revenue from room rentals and other hotel services less hotel and property operating expenses, decreased $2.1 million from the year ago period to $8 million. "We continue to work closely with our operators and their managers, focusing on both revenue enhancement and controlling costs," Walters said. "Our operators have been diligent in controlling variable costs such as labor, but in this declining occupancy environment there are fewer opportunities to affect fixed costs, which led to the erosion in operating margins."

Dispositions

Supertel began marketing eight hotels for sale in the 2009 first quarter, placing them in discontinued operations. In March 2009, the company sold a Super 8 hotel, located in Charles City, Iowa for $1.1 million, with a nominal net gain, and in May 2009 the company sold a Holiday Inn Express hotel in Gettysburg, Pennsylvania for $2.6 million with a $1.1 million net gain. Subsequent to quarter end, in July 2009, the company sold a Masters Inn in Kissimmee, Florida for $1.6 million with a nominal net gain. "We are actively marketing the remaining five properties and have received positive buyer interest," said Donavon A. Heimes, chief financial officer. "Financing remains a challenge for buyers; however, we have found that qualified buyers for properties priced under $5.0 million can generally obtain loans from local banks and other sources."

Balance Sheet

During the second quarter, the company paid off a $9.0 million, 8.4 percent note payable to First National Bank of Omaha, which was scheduled to mature in November 2009. The loan was refinanced using a $10 million facility provided by Great Western Bank. The new facility bears interest at 5.5 percent and matures in May 2012. The refinancing left approximately $1.0 million available for support of general operations and also unencumbered five continuing operations hotels from mortgage debt.

Supertel's remaining near-term debt maturity is a $9.5 million note payable to Wells Fargo Bank in September 2009 which the company intends to refinance or repay using other financing, funds from operations or proceeds from sale of hotels.

Dividend

The company did not declare a common stock dividend for the 2009 second quarter. The company will monitor requirements to maintain its REIT status and will regularly evaluate the dividend policy.

Outlook

"The economy remains in recession, and it is difficult to have clarity over the short term, but we are confident that America will indeed recover on the heels of the stimulus package," Walters commented. "We also fully understand that hospitality companies typically lag the general market by sometimes as much as six months. So, we are far from out of the woods, but I want to emphasize that we are comfortable with our position within the industry.

"Some forecasts indicate that the hotel industry will begin to stabilize in the latter part of the second half of the year and post a basically flat to down slightly RevPAR in 2010. Regardless of the timing of the recovery, our operations focus will remain on building revenues while restraining costs.

"The unprecedented economic conditions have prompted us to find new ways to operate our hotels smarter at lower cost, a trend we intend to continue during the expected coming rebound. We will continue to benefit from these savings when the economy begins to turn around.

"We remain clearly focused on preserving capital and strengthening our balance sheet," he said. "Concurrently, we are looking to the future and are reviewing our strategies to prepare for the economic rebound."

About Supertel Hospitality, Inc.

As of August 6, 2009, Supertel Hospitality, Inc. (NASDAQ: SPPR) owns 120 hotels comprised of 10,492 rooms in 24 states. The company's hotel portfolio includes Super 8, Comfort Inn/Comfort Suites, Hampton Inn, Holiday Inn Express, Supertel Inn, Days Inn, Ramada Limited, Guest House Inn, Sleep Inn, Savannah Suites, Masters Inn, Key West Inn and Baymont Inn. This diversity enables the company to participate in the best practices of each of these respected hospitality partners. The company specializes in limited-service hotels, which do not normally offer food and beverage service. For more information or to make a hotel reservation, visit www.supertelinc.com.

Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These risks are discussed in the company's filings with the Securities and Exchange Commission.

SELECTED FINANCIAL DATA:

The following table sets forth the company's balance sheet as of June 30, 2009 and December 31, 2008. The company owned 121 hotels (including six hotels held for sale) at June 30, 2009 and owned 123 hotels at December 31, 2008, (in thousands, except share data).

As of June 30, December 31, 2009 2008 ----------- ------------ (unaudited) ASSETS Investments in hotel properties $ 381,583 $ 380,604 Less accumulated depreciation 88,409 81,549 ----------- ------------ 293,174 299,055 Cash and cash equivalents 750 712 Accounts receivable 2,375 2,401 Prepaid expenses and other assets 4,937 2,903 Deferred financing costs, net 1,495 1,580 Investment in hotel properties, held for sale, net 12,155 14,826 ----------- ------------ $ 314,886 $ 321,477 =========== ============ LIABILITIES AND EQUITY LIABILITIES Accounts payable, accrued expenses and other liabilities $ 13,934 $ 13,697 Debt related to hotel properties held for sale 9,442 10,849 Long-term debt 188,453 191,957 ----------- ------------ 211,829 216,503 ----------- ------------ Redeemable noncontrolling interest in consolidated partnership, at redemption value 1,778 1,778 Redeemable preferred stock Series B, 800,000 shares authorized; $.01 par value, 332,500 shares outstanding, liquidation preference of $8,312 7,662 7,662 EQUITY Shareholders' equity Preferred stock, 40,000,000 shares authorized; Series A, 2,500,000 shares authorized, $.01 par value, 803,270 shares outstanding, liquidation preference of $8,033 8 8 Common stock, $.01 par value, 100,000,000 shares authorized; 21,880,017 and 20,924,677 shares outstanding. 219 209 Additional paid-in capital 119,693 112,804 Distributions in excess of retained earnings (27,353) (25,551) ----------- ------------ Total shareholders' equity 92,567 87,470 Noncontrolling interest Noncontrolling interest in consolidated partnership, redemption value $510 and $2,101 1,050 8,064 ----------- ------------ Total equity 93,617 95,534 ----------- ------------ COMMITMENTS AND CONTINGENCIES $ 314,886 $ 321,477 =========== ============

The following table sets forth the Company's unaudited results of operations for the three and six months ended June 30, 2009 and 2008, respectively (in thousands, except per share data).

Three Months Ended Six Months Ended June 30, June 30, ------------------ ------------------ 2009 2008 2009 2008 -------- -------- -------- -------- REVENUES Room rentals and other hotel services $ 27,889 $ 31,812 $ 50,955 $ 57,339 -------- -------- -------- -------- EXPENSES Hotel and property operations 19,936 21,806 38,573 41,432 Depreciation and amortization 3,594 3,455 7,190 6,741 General and administrative 1,047 1,040 2,018 1,996 -------- -------- -------- -------- 24,577 26,301 47,781 50,169 -------- -------- -------- -------- EARNINGS BEFORE NET GAIN (LOSS) ON DISPOSITIONS OF ASSETS, OTHER INCOME, INTEREST EXPENSE AND INCOME TAXES 3,312 5,511 3,174 7,170 Net gain (loss) on dispositions of assets (49) (1) (116) 1 Other income 34 32 72 63 Interest expense (3,145) (3,193) (6,125) (6,600) -------- -------- -------- -------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 152 2,349 (2,995) 634 Income tax (expense) benefit 49 (309) 1,006 353 -------- -------- -------- -------- INCOME (LOSS) FROM CONTINUING OPERATIONS 201 2,040 (1,989) 987 Earnings from discontinued operations 1,142 277 907 424 -------- -------- -------- -------- NET INCOME (LOSS) 1,343 2,317 (1,082) 1,411 Noncontrolling interest (69) (194) 17 (181) -------- -------- -------- -------- NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTERESTS 1,274 2,123 (1,065) 1,230 Preferred stock dividends (369) (236) (737) (422) -------- -------- -------- -------- NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 905 $ 1,887 $ (1,802) $ 808 ======== ======== ======== ======== NET EARNINGS (LOSS) PER COMMON SHARE - BASIC AND DILUTED EPS from continuing operations $ (0.01) $ 0.08 $ (0.12) $ 0.02 ======== ======== ======== ======== EPS from discontinued operations $ 0.05 $ 0.01 $ 0.04 $ 0.02 ======== ======== ======== ======== EPS Basic and Diluted $ 0.04 $ 0.09 $ (0.08) $ 0.04 ======== ======== ======== ======== RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Unaudited - In thousands, except per share data: Three months Six months ended June 30, ended June 30, 2009 2008 2009 2008 -------- --------- -------- -------- Weighted average shares outstanding for: calculation of earnings per share - basic 21,812 20,826 21,371 20,764 ======== ========= ======== ======== calculation of earnings per share - diluted 21,812 20,826 21,371 20,764 ======== ========= ======== ======== Weighted average shares outstanding for: calculation of FFO per share - basic 21,812 20,826 21,371 20,764 ======== ========= ======== ======== calculation of FFO per share - diluted 21,812 22,346 21,371 22,347 ======== ========= ======== ======== Reconciliation of Weighted average number of shares for EPS diluted to FFO per share diluted: EPS diluted shares 21,812 20,826 21,371 20,764 Common stock issuable upon exercise or conversion of: Options - - - - Series A Preferred Stock - 1,520 - 1,583 -------- --------- -------- -------- FFO per share diluted shares 21,812 22,346 21,371 22,347 ======== ========= ======== ======== Reconciliation of net income (loss) to FFO Net income (loss) attributable to common shareholders $ 905 $ 1,887 $ (1,802) $ 808 Depreciation and amortization 3,594 3,741 7,311 7,320 Net (gain) loss on disposition of assets (1,024) 1 (964) (1) -------- --------- -------- -------- FFO available to common shareholders $ 3,475 $ 5,629 $ 4,545 $ 8,127 ======== ========= ======== ======== FFO per share - basic $ 0.16 $ 0.27 $ 0.21 $ 0.39 ======== ========= ======== ======== FFO per share - diluted $ 0.16 $ 0.26 $ 0.21 $ 0.38 ======== ========= ======== ========

FFO is a non-GAAP financial measure. We consider FFO to be a market accepted measure of an equity REIT's operating performance, which is necessary, along with net earnings (loss), for an understanding of our operating results. FFO, as defined under the National Association of Real Estate Investment Trusts (NAREIT) standards, consists of net income computed in accordance with GAAP, excluding gains (or losses) from sales of real estate assets, plus depreciation and amortization of real estate assets. We believe our method of calculating FFO complies with the NAREIT definition. FFO does not represent amounts available for management's discretionary use because of needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties. FFO should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. All REITs do not calculate FFO in the same manner; therefore, our calculation may not be the same as the calculation of FFO for similar REITs.

We use FFO as a performance measure to facilitate a periodic evaluation of our operating results relative to those of our peers, who, like us, are typically members of NAREIT. We consider FFO a useful additional measure of performance for an equity REIT because it facilitates an understanding of the operating performance of our properties without giving effect to real estate depreciation and amortization, which assume that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, we believe that FFO provides a meaningful indication of our performance.

Unaudited-In thousands, except statistical data: Three months Six months ended June 30, ended June 30, 2009 2008 2009 2008 -------- --------- -------- -------- RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA Net income (loss) attributable to common shareholders $ 905 $ 1,887 $ (1,802) $ 808 Interest expense, including disc ops 3,283 3,441 6,406 7,101 Income tax (benefit) expense, including disc ops (15) 334 (1,058) (364) Depreciation and amortization, including disc ops 3,594 3,741 7,311 7,320 -------- --------- -------- -------- EBITDA 7,767 9,403 10,857 14,865 Noncontrolling interest 69 194 (17) 181 Preferred stock dividend 369 236 737 422 -------- --------- -------- -------- ADJUSTED EBITDA $ 8,205 $ 9,833 $ 11,577 $ 15,468 ======== ========= ======== ========

Adjusted EBITDA is a financial measure that is not calculated in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We calculate Adjusted EBITDA by adding back to net earnings (loss) available to common shareholders certain non-operating expenses and non-cash charges which are based on historical cost accounting and we believe may be of limited significance in evaluating current performance. We believe these adjustments can help eliminate the accounting effects of depreciation and amortization and financing decisions and facilitate comparisons of core operating profitability between periods, even though Adjusted EBITDA also does not represent an amount that accrues directly to common shareholders. In calculating Adjusted EBITDA, we also add back preferred stock dividends and noncontrolling interests, which are cash charges.

Adjusted EBITDA doesn't represent cash generated from operating activities determined by GAAP and should not be considered as an alternative to net income, cash flow from operations or any other operating performance measure prescribed by GAAP. Adjusted EBITDA is not a measure of our liquidity, nor is Adjusted EBITDA indicative of funds available to fund our cash needs, including our ability to make cash distributions. Neither does the measurement reflect cash expenditures for long-term assets and other items that have been and will be incurred. Adjusted EBITDA may include funds that may not be available for management's discretionary use due to functional requirements to conserve funds for capital expenditures, property acquisitions, and other commitments and uncertainties. To compensate for this, management considers the impact of these excluded items to the extent they are material to operating decisions or the evaluation of our operating performance. Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies.

The following table sets forth the statistics of the Company's same store continuing operations hotel properties for the three and six months ended June 30, 2009 and 2008, respectively.

Unaudited-In thousands, except Three months Six months statistical data: ended June 30, ended June 30, 2009 2008 2009 2008 ------- ------- ------- ------- Same Store (115 hotels): Revenue per available room (RevPAR): Midscale w/o F&B $ 41.61 $ 48.59 $ 37.79 $ 43.10 Economy $ 28.19 $ 32.04 $ 25.86 $ 28.64 Extended Stay $ 16.27 $ 16.69 $ 15.64 $ 17.14 ------- ------- ------- ------- Total $ 29.79 $ 33.94 $ 27.33 $ 30.54 ======= ======= ======= ======= Average daily room rate (ADR): Midscale w/o F&B $ 69.53 $ 72.73 $ 67.84 $ 70.66 Economy $ 46.90 $ 47.90 $ 46.19 $ 46.71 Extended Stay $ 25.05 $ 25.48 $ 24.94 $ 25.21 ------- ------- ------- ------- Total $ 49.13 $ 50.89 $ 48.16 $ 49.20 ======= ======= ======= ======= Occupancy percentage: Midscale w/o F&B 59.8% 66.8% 55.7% 61.0% Economy 60.1% 66.9% 56.0% 61.3% Extended Stay 65.0% 65.5% 62.7% 68.0% ------- ------- ------- ------- Total 60.6% 66.7% 56.8% 62.1% ======= ======= ======= =======

The following presentation includes some non-GAAP financial measures. The Company believes that the presentation of hotel property operating results (POI) for the three and six months ended June 30, 2009 and 2008 respectively, is helpful to investors, and represents a more useful description of its core operations, as it better communicates the comparability of its hotels' operating results for all of the company's continuing operations hotel properties.

Unaudited-In thousands, except statistical data: Three months Six months ended June 30, ended June 30, 2009 2008 2009 2008 --------- --------- --------- --------- Revenue from room rentals and other hotel services consists of: Room rental revenue $ 27,092 $ 30,934 $ 49,444 $ 55,663 Telephone revenue 80 90 155 186 Other hotel service revenues 717 788 1,356 1,490 --------- --------- --------- --------- Total revenue $ 27,889 $ 31,812 $ 50,955 $ 57,339 ========= ========= ========= ========= Hotel and property operations expense Total hotel and property operations expense $ 19,936 $ 21,806 $ 38,573 $ 41,432 ========= ========= ========= ========= Property Operating Income ("POI") Total property operating income $ 7,953 $ 10,006 $ 12,382 $ 15,907 ========= ========= ========= ========= RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO POI Income (loss) from continuing operations $ 201 $ 2,040 $ (1,989) $ 987 Depreciation and amortization 3,594 3,455 7,190 6,741 Net (gain) loss on disposition of assets 49 1 116 (1) Other income (34) (32) (72) (63) Interest expense 3,145 3,193 6,125 6,600 General and administrative expense 1,047 1,040 2,018 1,996 Income tax (benefit) expense (49) 309 (1,006) (353) --------- --------- --------- --------- POI $ 7,953 $ 10,006 $ 12,382 $ 15,907 ========= ========= ========= ========= Income (loss) from continuing operations as a percentage of total revenue 0.7% 6.4% -3.9% 1.7% ========= ========= ========= ========= POI as a percentage of total revenue 28.5% 31.5% 24.3% 27.7% ========= ========= ========= =========

The following table presents our RevPAR, ADR and Occupancy, by region, for the three months ended June 30, 2009 and 2008, respectively. The comparisons of same store operations (excluding Held For Sale hotels) are for 115 hotels owned as of April 1, 2008.

Three months ended Three months ended June 30, 2009 June 30, 2008 ----------------------- ----------------------- Same Store* Room Room Region Count RevPAR Occupancy ADR Count RevPAR Occupancy ADR ------- ------- ------ ------- ------- ------- ------ ------- Mountain 214 $ 35.28 65.8% $ 53.62 214 $ 41.52 79.3% $ 52.38 West North Central 2,928 30.71 63.1% 48.70 2,928 34.15 69.7% 48.97 East North Central 1,081 36.84 60.7% 60.66 1,081 44.57 70.4% 63.29 Middle Atlantic/ New England 205 38.01 56.8% 66.94 205 46.11 66.7% 69.16 South Atlantic 4,038 26.58 60.1% 44.25 4,038 30.73 65.7% 46.76 East South Central 1,070 31.19 58.0% 53.75 1,070 32.65 57.5% 56.77 West South Central 456 26.12 55.5% 47.09 456 29.84 63.0% 47.39 ------- ------- ------ ------- ------- ------- ------ ------- Total Same Store 9,992 $ 29.79 60.6% $ 49.13 9,992 $ 33.94 66.7% $ 50.89 ------- ------- ------ ------- ------- ------- ------ ------- States included in the Regions Mountain Idaho and Montana West North Central Iowa, Kansas, Missouri, Nebraska and South Dakota East North Central Indiana and Wisconsin Middle Atlantic/ New England Maine and Pennsylvania South Atlantic Delaware, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia East South Central Alabama, Kentucky and Tennessee West South Central Arkansas and Louisiana * Same Store reflects 115 hotels (excluding Held for Sale hotels).

The following table presents our RevPAR, ADR and Occupancy, by region, for the six months ended June 30, 2009 and 2008, respectively. The comparisons of same store operations (excluding Held For Sale hotels) are for 105 hotels owned as of January 1, 2008 and ten hotels acquired as of January 2, 2008.

Six months ended Six months ended June 30, 2009 June 30, 2008 ----------------------- ----------------------- Same Store* Room Room Region Count RevPAR Occupancy ADR Count RevPAR Occupancy ADR ------- ------- ------ ------- ------- ------- ------ ------- Mountain 214 $ 31.03 60.8% $ 51.00 214 $ 36.43 73.3% $ 49.69 West North Central 2,928 27.42 57.5% 47.69 2,928 29.93 62.4% 47.96 East North Central 1,081 33.71 56.1% 60.07 1,081 39.05 63.2% 61.83 Middle Atlantic/ New England 205 32.23 50.6% 63.74 205 36.70 56.0% 65.48 South Atlantic 4,038 24.88 57.3% 43.46 4,038 28.53 63.6% 44.89 East South Central 1,070 28.81 54.4% 52.96 1,070 29.93 54.0% 55.47 West South Central 456 25.99 55.4% 46.91 456 27.94 60.7% 46.00 ------- ------- ------ ------- ------- ------- ------ ------- Total Same Store 9,992 $ 27.33 56.8% $ 48.16 9,992 $ 30.54 62.1% $ 49.20 ------- ------- ------ ------- ------- ------- ------ ------- States included in the Regions Mountain Idaho and Montana West North Central Iowa, Kansas, Missouri, Nebraska and South Dakota East North Central Indiana and Wisconsin Middle Atlantic/ New England Maine and Pennsylvania South Atlantic Delaware, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia East South Central Alabama, Kentucky and Tennessee West South Central Arkansas and Louisiana * Same Store reflects 115 hotels (excluding Held For Sale hotels). The same store includes ten hotels acquired as of January 2, 2008.