Supertel shareholder expresses lack of confidence in management's ability to execute strategy

By Lisa Kerner

Charlotte, N.C., Nov. 19 - Supertel Hospitality, Inc. investor Clarus Capital Group Management LP said it has "grave concerns" about management's ability to execute the company's acquisition strategy.

Clarus, in a letter to Supertel's board, cited the age of the company's chief executive officer (73) and chief financial officer (62) and their personal and health distractions. The 5.1% shareholder noted that identifying, financing and integrating acquisitions is "complicated and time consuming."

Clarus suggested "a more sophisticated and motivated management team" could monetize Supertel's real estate holdings as well as reduce or eliminate high public company costs.

Clarus also demanded the board hire a prominent investment bank to explore strategic alternatives for enhancing shareholder value, including a sale of the company.

Supertel is a Norfolk, Neb., real estate investment trust.

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