Norfolk, Neb., lodging company Supertel Hospitality Inc. said Wednesday it would suspend paying dividends on its preferred stock to preserve capital and improve financial liquidity.
The company, which owns 69 hotels in 21 states, had paid dividends at 6.25, 8 or 10 percent annual rates on different issues of the preferred shares. Dividends on common stock ended in 2009 when the recession hurt the travel industry.
Through Sept. 30, Supertel has lost $2.5 million, though it had an $859,000 profit in the latest quarter. The previous four years, losses totaled $73.2 million. Its stock price closed at $4 a share Wednesday, down from $9.68 in March.