UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 8-K

                             CURRENT REPORT PURSUANT
                          TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                                 August 25, 2005
                Date of report (Date of earliest event reported)

                           Supertel Hospitality, Inc.
             (Exact Name of Registrant as Specified in Its Charter)

                                    Virginia
                 (State or Other Jurisdiction of Incorporation)

              0-25060                                52-1889548
      (Commission File Number)            (IRS Employer Identification No.)

         309 North Fifth Street
              Norfolk, NE                                     68701
(Address of Principal Executive Offices)                    (Zip Code)

                                 (402) 371-2520
              (Registrant's Telephone Number, Including Area Code)


          (Former Name or Former Address, if Changed Since Last Report)


Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

|_|  Written  communications  pursuant to Rule 425 under the  Securities Act (17
     CFR 230.425)

|_|  Soliciting  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
     240.14a-12)

|_|  Pre-commencement   communications  pursuant  to  Rule  14d-2(b)  under  the
     Exchange Act (17 CFR 240.14d-2(b))

|_|  Pre-commencement   communications  pursuant  to  Rule  13e-4(c)  under  the
     Exchange Act (17 CFR 240.13e-4(c))



Item 1.01.  Entry into a Material Definitive Agreement.

     On August 25, 2005, upon the  recommendation of the Compensation  Committee
and approval of the Board of Directors,  Supertel Hospitality, Inc. entered into
new  employment  agreements  with  President  and Chief  Executive  Officer Paul
Schulte and Chief Financial Officer Don Heimes.

     Each of the agreements  provides for an initial term from September 1, 2005
until  December  31,  2005,  with  successive  one-year  renewal  periods.   The
agreements  provide for annual base  salaries for Messrs.  Schulte and Heimes in
the  amount of  $250,000  and  $150,000,  respectively,  subject in each case to
review by the company annually. Each of the agreements provide that the employee
will be considered  for cash bonuses and option  grants on an annual basis.  Any
such bonus will be based on the recommendation of the Compensation Committee and
any such option grant will be made in the sole  discretion  of the  Compensation
Committee.  Each of the  agreements  also provide that, in the event the company
terminates  the  agreement  without  cause,  the  employee  would be entitled to
receive his annual  base salary for twelve  months  following  termination.  The
agreements also contain confidentiality and noncompetition covenants.

     The  employment  agreements  for Messrs.  Schulte  and Heimes are  attached
hereto as Exhibit 10.1 and Exhibit 10.2,  respectively,  and incorporated herein
by reference.

Item 9.01.  Financial Statements and Exhibits.

Exhibit 10.1 -  Employment  Agreement,  dated as of  September  1, 2005,  by and
                between Supertel Hospitality, Inc. and Paul Schulte.

Exhibit 10.2 -  Employment  Agreement,  dated as of  September  1, 2005,  by and
                between Supertel Hospitality, Inc. and Don Heimes.




                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                                  Supertel Hospitality, Inc.


Date:  August 29, 2005            By:  /s/ Donavon A. Heimes
                                     ____________________________
                                     Name:   Donavon A. Heimes
                                     Title:  Chief Financial Officer, Treasurer
                                             and Secretary





                                  EXHIBIT INDEX

Exhibit           Description                                       Page No.

10.1              Employment Agreement, dated as of
                  September 1, 2005, by and between
                  Supertel Hospitality, Inc. and Paul Schulte........

10.2              Employment Agreement, dated as of
                  September 1, 2005, by and between
                  Supertel Hospitality, Inc. and Don Heimes..........