Summary of SUPERTEL HOSPITALITY INC

Item 3.02 Unregistered Sale of Equity Securities

On April 2, 2009, the Board of Directors of Supertel Hospitality, Inc. authorized the issuance of 863,611 shares of common stock, $.01 par value per share, of the company to Budget Motels, Inc. ("BMI") in exchange for 863,611 common limited partnership units of the company's operating partnership, Supertel Limited Partnership, in accordance with the Third Amended and Restated Agreement of Limited Partnership, as amended, of the partnership. The common limited partnership units were issued to BMI in 2007 in connection with the company's purchase of hotels. Mr. William Latham, a director of the company, is the owner of BMI. The issuance of these common shares was effected in reliance upon the exemption from registration under Section 4(2) of the Securities Act of 1933, as amended.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Supertel Hospitality, Inc. announced on April 2, 2009 that Kelly A. Walters, age 48, will become the company's President and Chief Executive Officer effective April 14, 2009. He will be paid a base salary of $250,000 per annum. Mr. Walters was an executive with Investors Real Estate Trust from October 2006 to April 2009, serving as Senior Vice President of Capital Markets and New Business Development. From 1993 to 2006 he was Senior Vice President and Chief Investment Officer of Magnum Resources, Inc.

Mr. Walters will succeed Paul J. Schulte, age 75, the current President and Chief Executive Officer of the company. Mr. Schulte will continue as an officer of the company until his retirement on December 31, 2009. Mr. Schulte's employment letter is attached hereto as an exhibit and incorporated herein by this reference.

On April 2, 2009, Joseph Caggiano, a member of the company's board of directors notified the company that he will retire from the board upon conclusion of the annual shareholders meeting, scheduled for May 28, 2009.