Supertel Hospitality, Inc. Increases Second Quarter 2006 Dividend to $0.10 per Common Share

Supertel Hospitality, Inc. (NASDAQ: SPPR), a self-administered real estate investment trust, today announced that its Board of Directors has declared a cash dividend payment for common shareholders for the second quarter of 2006.

A dividend payment of $.10 per share, for common shareholders of record as of June 30, 2006, will be distributed on July 31, 2006. This represents an increase of $0.01 per share, over that of the first quarter of 2006.

Supertel Hospitality, Inc. specializes in limited-service lodging. The Company owns 78 hotels in 17 mid-western and eastern 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.

---

   _   _