Subsequent Events

On October 1 and 2, 2015, the Company, through three single-purpose bankruptcy remote entities 100% owned by Supertel Limited Partnership, a limited partnership 93% owned by Condor Hospitality Trust, Inc., acquired three hotels from affiliates of Peachtree Hotel Group II, LLC. The purchases were as follows:

San Antonio, Texas, Springhill Suites, through CDOR San Spring, LLC

Jacksonville, Florida, Courtyard by Marriott, through CDOR Jax Court, LLC; and

Atlanta, Georgia, Hotel Indigo, through CDOR Atl Indy, LLC

The $42.5 million purchase price was funded with the assumption of one loan with an aggregate outstanding principal balance of $11.2 million and two new GE loans totaling $15.1 million. The remaining $16.2 million was funded with $14.9 million in cash, approximately $1.25 million of borrowings from the Company’s existing credit facility with Great Western Bank, and the issuance of operating units from Supertel Limited Partnership. A total of 2,298,879 operating units were issued with a value of $450,000.

On October 6, 2015, the Company closed on the sale of a Quality Inn in Sheboygan, Wisconsin (59 rooms) for a gross sales price of $2.3 million. Partial proceeds of $1.2 million were applied to the associated debt with Great Western Bank.

On October 14, 2015, the Company closed on the sale of a Super 8 in Hays, Kansas (76 rooms) for a gross sales price of $1.9 million. Partial proceeds of $1.1 million were applied to the associated debt with Great Western Bank.

On October 16, 2015, the Company closed on the sale of a Days Inn in Glasgow, Kentucky (58 rooms) for a gross sales price of $1.8 million. Partial proceeds of $1.1 million were applied to the associated debt with GE.

On October 21, 2015, the Company closed on the sale of a Super 8 in Tomah, Wisconsin (65 rooms) for a gross sales price of $1.4 million. Partial proceeds of $0.8 million were applied to the associated debt with Great Western.

On October 26, 2015, the Company closed a $10.0 million mortgage loan with The Huntington National Bank. The loan has a five year term, a 25 year amortization schedule, and a fixed rate of 4.13%. The loan is non-recourse and secured by four hotels located in Indiana. Proceeds were used to refinance an existing loan with Citigroup Global Markets Realty Corp., which was set to mature in November, 2015.

On November 3, 2015, the Company closed on the sale of a Rodeway Inn in Fayetteville, North Carolina (120 rooms) for $2.6 million. There was no debt associated with the property subsequent to the Huntington National Bank refinancing.