Supertel Hospitality, Inc. to Cancel Conversion Rights on Series A Convertible Preferred Stock

NORFOLK, NE, Jan 12 (MARKET WIRE) --
Supertel Hospitality, Inc. (NASDAQ: SPPR), a self-administered real
estate investment trust, today announced that it has provided the
requisite notice to cancel the conversion rights on its Series A
Convertible Preferred Stock (NASDAQ: SPPRP) as of February 20, 2009. As a
result, holders of the Series A Convertible Preferred Stock cannot
convert their shares of Series A Convertible Preferred Stock into shares
of Supertel Hospitality's common stock after the close of business on
February 19, 2009. The Series A Convertible Preferred Stock was issued in
December 2005.

The conversion rights on the Series A Convertible Preferred Stock are
cancelable after December 31, 2008 if, for at least 20 trading days within
any period of 30 consecutive trading days, the closing price of the common
stock exceeds the conversion price of $5.66 by more than 30 percent. The
closing price of the common stock exceeded $7.36 on at least 20 trading
days within the 30-trading day period ending August 24, 2007.

The Series A Convertible Preferred Stock is in book-entry form through the
Depository Trust Company. Beneficial owners of the Series A Convertible
Preferred Stock who wish to exercise their conversion rights on or before
February 19, 2009 should contact American Stock Transfer & Trust Co., the
conversion agent for the Series A Convertible Preferred Stock, at the
following telephone number: (800) 937-5449.

Cancellation of the conversion rights does not affect payment of the
monthly dividend of $0.06667 per share on the outstanding Series A
Convertible Preferred Stock.

Supertel Hospitality, Inc. specializes in limited-service lodging. The
company owns 123 hotels in 24 states.

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.

Contact:
Donavon A. Heimes
Supertel Hospitality
Chief Financial Officer
402.371.2520
Email Contact

Jerry Daly, Carol McCune
Daly Gray
(Media contact)
703.435.6293
Email Contact

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