AMENDMENT DATED SEPTEMBER 21, 1998
                                       TO
                          AGREEMENT AND PLAN OF MERGER


         This  Amendment,  dated as of  September  21,  1998 (the  "Amendment"),
amends that certain Agreement and Plan of Merger dated as of June 3, 1998 by and
between  PMC  Commercial  Trust and  Supertel  Hospitality,  Inc.  (the  "Merger
Agreement").

     1.  Extension  of Time.  The parties  hereby  agree to extend the date with
respect to certain  matters by amending the  following  provisions of the Merger
Agreement as set forth below:

         (i)      Section   10.2(a)  is  hereby  amended  to  replace  the  date
                  "November 30, 1998" with the date "December 31, 1998";

         (ii)     Sections  10.3(c)  and (d) are each  respectively  amended  to
                  replace the dates "October 31, 1998" with "November 30, 1998";

         (iii)    Sections  10.4(b)  and (c) are each  respectively  amended  to
                  replace the dates "October 31, 1998" with "November 30, 1998";
                  and

         (iv)     Section 8.21 is hereby amended to replace  "December 31, 1998"
                  with "January 31, 1999."

     2. No Further Amendments. Except as provided above, the Merger Agreement is
not further amended.

     IN WITNESS WHEREOF, the parties have executed this Amendment and caused the
same to be duly  delivered  on their  behalf on the day and year  first  written
above.


                                          PMC COMMERCIAL TRUST

                                          /s/ Lance B. Rosemore
                                     By:__________________________
                                          Lance B. Rosemore
                                          President and Chief Executive Officer



                                          SUPERTEL HOSPITALITY, INC.

                                           /s/ Paul J. Schulte
                                     By:__________________________
                                           Paul J. Schulte
                                           President and Chief Executive Officer