NORFOLK, NE-Supertel Hospitality Inc. released its second quarter earnings report late last week. It showed a 12.3% decline in revenues compared to the same quarter in 2008. Revenues for the quarter totaled $27.9 million.
“Consistent with the trends in the economy and our industry, Supertel experienced another challenging quarter,” says Kelly Walters, Supertel’s president and CEO. “During the second quarter, Supertel reported a 12.2% decline in RevPAR which compares well to the industry-wide decrease of 19.5%, according to Smith Travel Research data. Nearly all of our RevPAR decline was due to a 9.1% drop in occupancy, and our average daily room rate declined by only 3.5% while the industry as a whole experienced a 9.7% decrease in ADR.”
For common shareholders net income dropped from $1.9 million, $0.09 per share, in Q2 2008 to $0.9 million, $0.04 per share, this past quarter. Funds from operations also fell this quarter. For Q2 2009, Supertel reported an FFO of $3.5 million, $0.16 per diluted share. This is down from the previous year, when FFO totaled $5.6 million, $0.26 per share.