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                                                                    EXHIBIT 99.2

             PMC COMMERCIAL TRUST ENTERS INTO DEFINITIVE AGREEMENT
                     TO ACQUIRE SUPERTEL HOSPITALITY, INC.


         Dallas Texas, June 4, 1998: PMC Commercial Trust (Amex: PCC) and
Supertel Hospitality, Inc. (Nasdaq: SPPR) announced that they have entered into
an Agreement and Plan of Merger pursuant to which Supertel will merge with and
into PMC Commercial.  The consideration to be paid by PMC Commercial would be
0.6 common shares of PMC Commercial (the "Common Shares") for each share of
Supertel, subject to an adjustment in the event the average trading price of
the Common Shares for the ten trading days ending five days before the
respective shareholder meetings to approve the merger drops below $17.50 or
increases above $24.00.  The merger has been approved by the boards of both
companies, but is subject to a number of conditions, including approval by the
shareholders of PMC Commercial and the stockholders of Supertel.

         Additionally, the agreement provides that the stockholders of Supertel
will receive a preclosing dividend of certain of Supertel's earnings and
profits which, if less than $3.00 per share of Supertel Common Stock, allows
Supertel to terminate the agreement.  The special dividend would be payable
only if the merger occurs.  The merger is expected to be consummated in
September or October 1998.

         Under the agreement, PMC Commercial would acquire the hotel assets of
Supertel in a transaction valued at approximately $134 million, including
approximately $61 million of equity (based on the closing price of the PMC
Commercial common shares on June 3, 1998) with the remainder consisting of the
assumption of debt and/or cash.

         The 62 hotels (containing 4,453 rooms) acquired by PMC Commercial
pursuant to the merger will be leased to Norfolk Hospitality Management Co.
(the "Lessee"), an entity to be owned by certain officers and employees of
Supertel.  The Lessee will pay an annual base rent of $15,000,000 (including
certain reserve requirements of $600,000) plus additional rent in the amount of
20% of every dollar of annual gross revenues in the excess of $42,000,000 and
25% of every dollar of gross revenues in excess of $50,000,000.  The lease
agreement has a five year initial term with options for additional two year
terms.

         "The anticipated revenues from the hotels would allow PMC Commercial
to continue growth while acquiring the benefits of property ownership.  This
acquisition allows continuity of present Supertel management.  We are looking
forward to a longtime relationship with the successful, proven management team
from Supertel.  The shareholders of both companies should be provided with an
attractive dividend yield plus the possibility of capital appreciation on this
investment.  The possibility of appreciation of the 62 properties of Supertel
and the 30 properties to be acquired from Amerihost Properties, Inc. announced
two weeks ago adds an element of growth not previously available within the PMC
Commercial Trust structure." said Andrew S. Rosemore, Chairman of the Board of
Trust Managers of PMC Commercial.

         Paul J. Schulte, President and Chief Executive Officer of Supertel
said, "The transaction between Supertel and PMC Commercial is in the best
interests of the stockholders of Supertel and
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presents an opportunity for our respective shareholders to achieve long-term
strategic and financial benefits." Supertel owns and operates limited-service
motel properties under the Super 8, Comfort Inn and Wingate names.  Supertel
has 62 motels, primarily in the Midwest and Texas.

         A registration statement relating to the securities to be issued in
the merger will be filed with the Securities and Exchange Commission but has
not yet been filed or become effective.  The securities may not be sold nor may
offers to buy be accepted prior to the time the registration statement becomes
effective.  This press release should not constitute an offer to sell or the
solicitation of any offer to buy nor shall there be any sale of the securities
in any state in which such offer, solicitation or sale would be unlawful prior
to the registration or qualification under the securities laws of any such
state.

         Statements made in this press release that are forward-looking in
nature are intended to be "forward-looking statements" within the meaning of
Section 21E of the Securities Exchange Act of 1934 and may involve risk and
uncertainties.  These statements may differ materially from actual future
events or results.  Readers are referred to documents filed by Supertel and PMC
Commercial with the Securities and Exchange Commission, including their Annual
Reports on Form 10-K for the year ended December 31, 1997, which identifies
significant risk factors which could cause actual results to differ from those
contained in the forward-looking statements.