Document:

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                                                                   Exhibit 10.4
                               E & P REIT TRUST

                                    BYLAWS
                                    ------

                                   ARTICLE I
                                    OFFICES

     Section 1. PRINCIPAL OFFICE. The principal office of the Trust shall be
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located at such place or places as the Trustees may designate.

     Section 2. ADDITIONAL OFFICES. The Trust may have additional offices at
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such places as the Trustees may from time to time determine or the business of
the Trust may require.

     Section 3. FISCAL AND TAXABLE YEARS. The fiscal and taxable years of the
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Trust shall begin on January 1 and end on December 31.

                                  ARTICLE II
                           MEETINGS OF SHAREHOLDERS

     Section 1. PLACE. All meetings of shareholders shall be held at the
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principal office of the Trust or at such other place within the United States as
shall be stated in the notice of the meeting.

     Section 2. ANNUAL MEETING. An annual meeting of the shareholders for the
                --------------
election of Trustees and the transaction of any business within the powers of
the Trust shall be held immediately following the annual board of directors
meeting of Supertel Hospitality, Inc. or any successor corporation. Failure to
hold an annual meeting does not invalidate the Trust's existence or affect any
otherwise valid acts of the Trust.

     Section 3. SPECIAL MEETINGS. The chairman of the board or the president or
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one-third of the Trustees may call special meetings of the shareholders. Special
meetings of shareholders shall also be called by the secretary upon the written
request of the holders of shares entitled to cast not less than 25% of all the
votes entitled to be cast at such meeting. Such request shall state the purpose
of such meeting and the matters proposed to be acted on at such meeting. The
secretary shall inform such shareholders of the reasonably estimated cost of
preparing and mailing notice of the meeting and, upon payment by such
shareholders to the Trust of such costs, the secretary shall give notice to each
shareholder entitled to notice of the meeting. Unless requested by shareholders
entitled to cast a majority of all the votes entitled to be cast at such
meeting, a special meeting need not be called to consider any matter which is
substantially the same as a matter voted on at any meeting of the shareholders
held during the preceding twelve months.
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     Section 4. NOTICE. Not less than ten nor more than 90 days before each
                ------
meeting of shareholders, the secretary shall give to each shareholder entitled
to vote at such meeting and to each shareholder not entitled to vote who is
entitled to notice of the meeting written or printed notice stating the time and
place of the meeting and, in the case of a special meeting or as otherwise may
be required by any statute, the purpose for which the meeting is called, either
by mail or by presenting it to such shareholder personally or by leaving it at
his residence or usual place of business. If mailed, such notice shall be deemed
to be given when deposited in the United States mail addressed to the
shareholder at his post office address as it appears on the records of the
Trust, with postage thereon prepaid.

     Section 5. SCOPE OF NOTICE. Any business of the Trust may be transacted at
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 an annual meeting of shareholders without being specifically designated in the
 notice, except such business as is required by any statute to be stated in such
 notice. No business shall be transacted at a special meeting of shareholders
 except as specifically designated in the notice.

     Section 6. ORGANIZATION. At every meeting of the shareholders, the Chairman
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of the Board, if there be one, shall conduct the meeting or, in the case of
vacancy in office or absence of the Chairman of the Board, one of the following
officers present shall conduct the meeting in the order stated: the Vice
Chairman of the Board, if there be one, the President, the Vice Presidents in
their order of rank and seniority, or a Chairman chosen by the shareholders
entitled to cast a majority of the votes which all shareholders present in
person or by proxy are entitled to cast, shall act as Chairman, and the
Secretary, or, in his absence, an assistant secretary, or in the absence of both
the Secretary and assistant secretaries, a person appointed by the Chairman
shall act as Secretary.

     Section 7. QUORUM. At any meeting of shareholders, the presence in person
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or by proxy of shareholders entitled to cast a majority of all the votes
entitled to be cast at such meeting shall constitute a quorum; but this Section
shall not affect any requirement under any statute or the Declaration of Trust
for the vote necessary for the adoption of any measure. If, however, such quorum
shall not be present at any meeting of the shareholders, the shareholders
entitled to vote at such meeting, present in person or by proxy, shall have the
power to adjourn the meeting from time to time to a date not more than 120 days
after the original record date without notice other than announcement at the
meeting. At such adjourned meeting at which a quorum shall be present, any
business may be transacted which might have been transacted at the meeting as
originally notified.

     Section 8. VOTING. A plurality of all the votes cast at a meeting of
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shareholders duly called and at which a quorum is present shall be sufficient to
elect a Trustee. Each share may be voted for as many individuals as there are
Trustees to be elected and for whose election the share is entitled to be voted.
A majority of the votes cast at a meeting of shareholders duly called and at
which a quorum is present shall be sufficient to approve any other matter which
may properly come before the meeting, unless more than a majority of the votes
cast is required herein or by statute or by the Declaration of Trust. Unless
otherwise provided in the Declaration, each outstanding share, regardless of
class, shall be entitled to one vote on each matter submitted to a vote at a
meeting of shareholders.

     Section 9. PROXIES. A shareholder may vote the shares owned of record by
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him, either in person or by proxy executed in writing by the shareholder or by
his duly authorized attorney in fact. Such proxy shall be filed with the
secretary of the Trust before or at the time of the meeting. No proxy

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shall be valid after eleven months from the date of its execution, unless
otherwise provided in the proxy.

     Section 10. VOTING OF SHARES BY CERTAIN HOLDERS. Shares of the Trust
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registered in the name of a corporation, partnership, trust or other entity, if
entitled to be voted, may be voted by the president or a vice president, a
general partner or trustee thereof, as the case may be, or a proxy appointed by
any of the foregoing individuals, unless some other person who has been
appointed to vote such shares pursuant to a bylaw or a resolution of the
governing board of such corporation or other entity or agreement of the partners
of the partnership presents a certified copy of such bylaw, resolution or
agreement, in which case such person may vote such shares. Any trustee or other
fiduciary may vote shares registered in his name as such fiduciary, either in
person or by proxy.

     Shares of the Trust directly or indirectly owned by it shall not be voted
at any meeting and shall not be counted in determining the total number of
outstanding shares entitled to be voted at any given time, unless they are held
by it in a fiduciary capacity, in which case they may be voted and shall be
counted in determining the total number of outstanding shares at any given time.

     The Trustees may adopt by resolution a procedure by which a shareholder may
certify in writing to the Trust that any shares registered in the name of the
shareholder are held for the account of a specified person other than the
shareholder. The resolution shall set forth the class of shareholders who may
make the certification, the purpose for which the certification may be made, the
form of certification and the information to be contained in it; if the
certification is with respect to a record date or closing of the share transfer
books, the time after the record date or closing of the share transfer books
within which the certification must be received by the Trust; and any other
provisions with respect to the procedure which the Trustees consider necessary
or desirable. On receipt of such certification, the person specified in the
certification shall be regarded as, for the purposes set forth in the
certification, the shareholder of record of the specified shares in place of the
shareholder who makes the certification.

     Notwithstanding any other provision contained herein or in the Declaration
of Trust or these Bylaws, Title 3, Subtitle 7 of the Corporations and
Associations Article of the Annotated Code of Maryland (or any successor
statute) shall not apply to any acquisition by any person of shares of
beneficial interest of the Trust. This Section may be repealed, in whole or in
part, at any time, whether before or after an acquisition of control shares and,
upon such repeal, may, to the extent provided by any successor bylaw, apply to
any prior or subsequent control share acquisition.

     Section 11. INSPECTORS. At any meeting of shareholders, the chairman of the
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meeting may, or upon the request of any shareholder shall, appoint one or more
persons as inspectors for such meeting. Such inspectors shall ascertain and
report the number of shares represented at the meeting based upon their
determination of the validity and effect of proxies, count all votes, report the
results and perform such other acts as are proper to conduct the election and
voting with impartiality and fairness to all the shareholders.

     Each report of an inspector shall be in writing and signed by him or by a
majority of them if there is more than one inspector acting at such meeting.  If
there is more than one inspector, the report of a majority shall be the report
of the inspectors.  The report of the inspector or inspectors on the

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number of shares represented at the meeting and the results of the voting shall
be prima facie evidence thereof.
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     Section 12. REPORTS TO SHAREHOLDERS.
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     (a)  Not later than 90 days after the close of each fiscal year of the
Trust, the Trustees shall deliver or cause to be delivered a report of the
business and operations of the Trust during such fiscal year to the
shareholders, containing a balance sheet and a statement of income and surplus
of the Trust, accompanied by the certification of an independent certified
public accountant, and such further information as the Trustees may determine is
required pursuant to any law or regulation to which the Trust is subject. A
signed copy of the annual report and the accountant's certificate shall be filed
by the Trustees with the State Department of Assessments and Taxation of
Maryland, and with such other governmental agencies as may be required by law
and as the Trustees may deem appropriate.

     (b)  Not later than 45 days after the end of each of the first three
quarterly periods of each fiscal year, the Trustees shall deliver or cause to be
delivered an interim report to the shareholders containing unaudited financial
statements for such quarter and for the period from the beginning of the fiscal
year to the end of such quarter, and such further information as the Trustees
may determine is required pursuant to any law or regulation to which the Trust
is subject.

     Section 13. NOMINATIONS AND SHAREHOLDER BUSINESS.
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     (a)  Annual Meetings of Shareholders. Nominations of persons for election
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to the Board of Trustees and the proposal of business to be considered by the
shareholders may be made at an annual meeting of shareholders (i) pursuant to
the Trust's notice of meeting, (ii) by or at the direction of the Trustees or
(iii) by any shareholder of the Trust who was a shareholder of record at the
time of giving of notice and who is entitled to vote at the meeting.

     (b)  Special Meetings of Shareholders. Only such business shall be
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conducted at a special meeting of shareholders as shall have been brought before
the meeting pursuant to the Trust's notice of meeting. Nominations of persons
for election to the Board of Trustees may be made at a special meeting of
shareholders at which Trustees are to be elected (i) pursuant to the Trust's
notice of meeting (ii) by or at the direction of the Board of Trustees or (iii)
provided that the Board of Trustees has determined that Trustees shall be
elected at such special meeting, by any shareholder of the Trust who was a
shareholder of record at the time of giving of notice and who is entitled to
vote at the meeting.

     (c)  General. Only such persons who are nominated in accordance with the
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procedures set forth in this Section 13 shall be eligible to serve as Trustees
and only such business shall be conducted at a meeting of shareholders as shall
have been brought before the meeting in accordance with the procedures set forth
in this Section 13. The presiding officer of the meeting shall have the power
and duty to determine whether a nomination or any business proposed to be
brought before the meeting was made in accordance with the procedures set forth
in this Section 13 and, if any proposed nomination or business is not in
compliance with this Section 13, to declare that such defective nomination or
proposal be disregarded.

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     Section 14. INFORMAL ACTION BY SHAREHOLDERS. Any action required or
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permitted to be taken at a meeting of shareholders may be taken without a
meeting if a consent in writing, setting forth such action, is signed by each
shareholder entitled to vote on the matter and any other shareholder entitled to
notice of a meeting of shareholders (but not to vote thereat) has waived in
writing any right to dissent from such action, and such consent and waiver are
filed with the minutes of proceedings of the shareholders.

     Section 15. VOTING BY BALLOT. Voting on any question or in any election may
                 ----------------
be viva voce unless the presiding officer shall order or any shareholder shall
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demand that voting be by ballot.

                                  ARTICLE III
                                   TRUSTEES

     Section 1.  GENERAL POWERS; QUALIFICATIONS; TRUSTEES HOLDING OVER. The
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business and affairs of the Trust shall be managed under the direction of its
Board of Trustees. A Trustee shall be an individual at least 21 years of age who
is not under legal disability. Unless otherwise agreed between the Trust and the
Trustee, each individual Trustee, may engage in other business activities of the
type conducted by the Trust and is not required to present to the Trust any
investment opportunities presented to them even though the investment
opportunities may be within the scope of the Trust's investment policies. In
case of failure to elect Trustees at an annual meeting of the shareholders, the
Trustees holding over shall continue to direct the management of the business
and affairs of the Trust until their successors are elected and qualify.

     Section 2.  ANNUAL AND REGULAR MEETINGS. An annual meeting of the Trustees
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shall be held immediately after and at the same place as the annual meeting of
shareholders, no notice other than this Bylaw being necessary. The Trustees may
provide, by resolution, the time and place, either within or without the State
of Maryland, for the holding of regular meetings of the Trustees without other
notice than such resolution.

     Section 3.  SPECIAL MEETINGS. Special meetings of the Trustees may be
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called by or at the request of the chairman of the board or the president or by
a majority of the Trustees then in office. The person or persons authorized to
call special meetings of the Trustees may fix any place, either within or
without the State of Maryland, as the place for holding any special meeting of
the Trustees called by them.

     Section 4.  NOTICE. Notice of any special meeting shall be given by written
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notice delivered personally, telegraphed, faxed or mailed to each Trustee at his
business or residence address. Personally delivered, faxed or telegraphed
notices shall be given at least two days prior to the meeting. Notice by mail
shall be given at least five days prior to the meeting. Telephone notice shall
be given at least 24 hours prior to the meeting. If mailed, such notice shall be
deemed to be given when deposited in the United States mail properly addressed,
with postage thereon prepaid. If given by telegram or fax, such notice shall be
deemed to be given when the telegram is delivered to the telegraph company or
when the fax is sent with confirmation. Telephone notice shall be deemed given
when the Trustee is personally given such notice in a telephone call to which he
is a party. Neither the business to be

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transacted at, nor the purpose of, any annual, regular or special meeting of the
Trustees need be stated in the notice, unless specifically required by statute
or these Bylaws.

     Section 5.  QUORUM. A majority of the entire Board of Trustees shall
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constitute a quorum for transaction of business at any meeting of the Trustees,
provided that, if less than a majority of such Trustees are present at said
meeting, a majority of the Trustees present may adjourn the meeting from time to
time without further notice, and provided further that if, pursuant to the
Declaration of Trust or these Bylaws, the vote of a majority of a particular
group of Trustees is required for action, a quorum must also include a majority
of such group.

     The Trustees present at a meeting which has been duly called and convened
may continue to transact business until adjournment, notwithstanding the
withdrawal of enough Trustees to leave less than a quorum.

     Section 6.  VOTING. The action of the majority of the Trustees present at a
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meeting at which a quorum is present shall be the action of the Trustees, unless
the concurrence of a greater proportion is required for such action by
applicable statute.

     Section 7.  TELEPHONE MEETINGS. Trustees may participate in a meeting by
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means of a conference telephone or similar communications equipment if all
persons participating in the meeting can hear each other at the same time.
Participation in a meeting by these means shall constitute presence in person at
the meeting.

     Section 8.  INFORMAL ACTION BY TRUSTEES. Any action required or permitted
                 ---------------------------
to be taken at any meeting of the Trustees may be taken without a meeting, if a
consent in writing to such action is signed by each Trustee and such written
consent is filed with the minutes of proceedings of the Trustees.

     Section 9.  VACANCIES. If for any reason any or all the Trustees cease to
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be Trustees, such event shall not terminate the Trust or affect these Bylaws or
the powers of the remaining Trustees hereunder (even if fewer than two Trustees
remain). Any vacancy (including a vacancy created by an increase in the number
of Trustees) shall be filled, at any regular meeting or at any special meeting
called for that purpose, by a majority of the Trustees. Any individual so
elected as Trustee shall hold office for the unexpired term of the Trustee he is
replacing.

     Section 10. COMPENSATION. Trustees shall not receive any stated salary for
                 ------------
their services as Trustees. Trustees may be reimbursed for expenses of
attendance, if any, at each annual, regular or special meeting of the Trustees
or of any committee thereof; and for their expenses, if any, in connection with
each property visit and any other service or activity performed or engaged in as
Trustees; but nothing herein contained shall be construed to preclude any
Trustees from serving the Trust in any other capacity and receiving compensation
therefor.

     Section 11. REMOVAL OF TRUSTEES. The shareholders may, at any time, remove
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any Trustee in the manner provided in the Declaration of Trust.

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     Section 12. LOSS OF DEPOSITS. No Trustee shall be liable for any loss which
                 ----------------
may occur by reason of the failure of the bank, trust company, savings and loan
association, or other institution with whom moneys or shares have been
deposited.

     Section 13. SURETY BONDS. Unless required by law, no Trustee shall be
                 ------------
obligated to give any bond or surety or other security for the performance of
any of his duties.

     Section 14. RELIANCE. Each Trustee, officer, employee and agent of the
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Trust shall, in the performance of his duties with respect to the Trust, be
fully justified and protected with regard to any act or failure to act in
reliance in good faith upon the books of account or other records of the Trust,
upon an opinion of counsel or upon reports made to the Trust by any of its
officers or employees or by the adviser, accountants, appraisers or other
experts or consultants selected by the Trustees or officers of the Trust,
regardless of whether such counsel or expert may also be a Trustee.

     Section 15. NUMBER AND QUALIFICATIONS. The number of Trustees of the Trust
                 -------------------------
shall not be less than one (1) nor more than nine (9). The Trustees shall be
classified, with respect to the terms for which they severally hold office, into
separate classes, if and in the manner prescribed in the Trust's Declaration of
Trust. At any regular meeting or at any special meeting called for that purpose,
at least 80% of the members of the Board of Trustees shall establish, increase
or decrease the number of Trustees, provided that the number thereof shall never
be less than required by Maryland law and further provided that the tenure of
office of a Trustee shall not be affected by any decrease in the number of
Trustees. Trustees need not be shareholders of the Trust.

     Section 16. INTERESTED TRUSTEE TRANSACTIONS. Section 2-419 of the Maryland
                 -------------------------------
General Corporation Law (the "MGCL") shall be available for and apply to any
contract or other transaction between the Trust and any of its Trustees or
between the Trust and any other trust, corporation, firm or other entity in
which any of its Trustees is a trustee or director or has a material financial
interest.

                                  ARTICLE IV
                                  COMMITTEES

     Section 1.  NUMBER, TENURE AND QUALIFICATIONS. The Board of Trustees may
                 ---------------------------------
appoint from among its members an Executive Committee and other committees
comprised of two or more Trustees. The Board of Trustees may delegate to any
committee any of the powers of the Board of Trustees except the power to elect
Trustees, declare dividends or distributions on stock, recommend to the
shareholders any action which requires shareholder approval, amend or repeal
these Bylaws, approve any merger or share exchange which does not require
shareholder approval, or issue stock. However, if the Board of Trustees has
given general authorization for the issuance of stock, a committee of the Board
of Trustees, in accordance with a general formula or method specified by the
Board of Trustees by resolution or by adoption of a stock option plan, may fix
the terms of stock, subject to classification or reclassification, and the terms
on which any stock may be issued.

     Notice of committee meetings shall be given in the same manner as notice
for special meetings of the Board of Trustees.

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     One-third, but not less than two, of the members of any committee shall be
present in person at any meeting of such committee in order to constitute a
quorum for the transaction of business at such meeting, and the act of a
majority present shall be the act of such committee. The Board of Trustees may
designate a chairman of any committee, and such chairman or any two members of
any committee may fix the time and place of its meetings unless the Board shall
otherwise provide. In the absence or disqualification of any member of any such
committee, the members thereof present at any meeting and not disqualified from
voting, whether or not they constitute a quorum, may unanimously appoint another
Trustee to act at the meeting in the place of such absent or disqualified
members.

     Each committee shall keep minutes of its proceedings and shall report the
same to the Board of Trustees at the meeting next succeeding, and any action by
the committees shall be subject to revision and alteration by the Board of
Trustees, provided that no rights of third persons shall be affected by any such
revision or alteration.

     Subject to the provisions hereof, the Board of Trustees shall have the
power at any time to change the membership of any committee, to fill all
vacancies, to designate alternative members to replace any absent or
disqualified member, or to dissolve any such committee.

     Section 2. POWERS. The Trustees may delegate to committees appointed under
                ------
Section 1 of this Article any of the powers of the Trustees, except as
prohibited by law.

     Section 3. MEETINGS. In the absence of any member of any such committee,
                --------
the members thereof present at any meeting, whether or not they constitute a
quorum, may appoint another Trustee to act in the place of such absent member.

     Section 4. TELEPHONE MEETINGS. Members of a committee of the Trustees may
                ------------------
participate in a meeting by means of a conference telephone or similar
communications equipment if all persons participating in the meeting can hear
each other at the same time. Participation in a meeting by these means shall
constitute presence in person at the meeting.

     Section 5. INFORMAL ACTION BY COMMITTEES. Any action required or permitted
                -----------------------------
to be taken at any meeting of a committee of the Trustees may be taken without a
meeting, if a consent in writing to such action is signed by each member of the
committee and such written consent is filed with the minutes of proceedings of
such committee.

                                   ARTICLE V
                                   OFFICERS

     Section 1. GENERAL PROVISIONS. The officers of the Trust may consist of a
                ------------------
chairman of the board, a vice chairman of the board, a chief executive officer,
a president, one or more vice presidents, a treasurer, one or more assistant
treasurers, a secretary, and one or more assistant secretaries. In addition, the
Trustees may from time to time appoint such other officers with such powers and
duties as they shall deem necessary or desirable. The officers of the Trust
shall be elected

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annually by the Trustees at the first meeting of the Trustees held after each
annual meeting of shareholders. If the election of officers shall not be held at
such meeting, such election shall be held as soon thereafter as may be
convenient. Each officer shall hold office until his successor is elected and
qualifies or until his death, resignation or removal in the manner hereinafter
provided. Any two or more offices except president and vice president may be
held by the same person. In their discretion, the Trustees may leave unfilled
any office except that of president and secretary. Election of an officer or
agent shall not of itself create contract rights between the Trust and such
officer or agent.

     Section 2. REMOVAL AND RESIGNATION. Any officer or agent of the Trust may
                -----------------------
be removed by the Trustees if in their judgment the best interests of the Trust
would be served thereby, but such removal shall be without prejudice to the
contract rights, if any, of the person so removed. Any officer of the Trust may
resign at any time by giving written notice of his resignation to the Trustees,
the chairman of the board, the president or the secretary. Any resignation shall
take effect at any time subsequent to the time specified therein or, if the time
when it shall become effective is not specified therein, immediately upon its
receipt. The acceptance of a resignation shall not be necessary to make it
effective unless otherwise stated in the resignation. Such resignation shall be
without prejudice to the contract rights, if any, of the Trust.

     Section 3. VACANCIES. A vacancy in any office may be filled by the Trustees
                ---------
for the balance of the term.

     Section 4. CHIEF EXECUTIVE OFFICER. The Trustees may designate a chief
                -----------------------
executive officer from among the elected officers. The chief executive officer
shall have responsibility for implementation of the policies of the Trust, as
determined by the Trustees, and for the administration of the business affairs
of the Trust. In the absence of both the chairman and vice chairman of the
board, the chief executive officer shall preside over the meetings of the
Trustees and of the shareholders at which he shall be present.

     Section 5. CHIEF OPERATING OFFICER. The Trustees may designate a chief
                -----------------------
operating officer from among the elected officers. Said officer will have the
responsibilities and duties as set forth by the Trustees or the chief executive
officer.

     Section 6. CHIEF FINANCIAL OFFICER. The Trustees may designate a chief
                -----------------------
financial officer from among the elected officers. Said officer will have the
responsibilities and duties as set forth by the Trustees or the chief executive
officer.

     Section 7. CHAIRMAN AND VICE CHAIRMAN OF THE BOARD. The chairman of the
                ---------------------------------------
board shall preside over the meetings of the Trustees and of the shareholders at
which he shall be present and shall in general oversee all of the business and
affairs of the Trust. In the absence of the chairman of the board, the vice
chairman of the board shall preside at such meetings at which he shall be
present. The chairman and the vice chairman of the board may execute any deed,
mortgage, bond, contract or other instrument, except in cases where the
execution thereof shall be expressly delegated by the Trustees or by these
Bylaws to some other officer or agent of the Trust or shall be required by law
to be otherwise executed. The chairman of the board and the vice chairman of the
board shall perform such other duties as may be assigned to him or them by the
Trustees.

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     Section 8.  PRESIDENT. In the absence of the chairman, the vice chairman of
                 ---------
the board and the chief executive officer, the president shall preside over the
meetings of the Trustees and of the shareholders at which he shall be present.
In the absence of a designation of a chief executive officer by the Trustees,
the president shall be the chief executive officer and shall be ex officio a
member of all committees that may, from time to time, be constituted by the
Trustees. The president may execute any deed, mortgage, bond, contract or other
instrument, except in cases where the execution thereof shall be expressly
delegated by the Trustees or by these Bylaws to some other officer or agent of
the Trust or shall be required by law to be otherwise executed; and in general
shall perform all duties incident to the office of president and such other
duties as may be prescribed by the Trustees from time to time.

     Section 9.  VICE PRESIDENTS. In the absence of the president or in the
                 ---------------
event of a vacancy in such office, the vice president (or in the event there be
more than one vice president, the vice presidents in the order designated at the
time of their election or, in the absence of any designation, then in the order
of their election) shall perform the duties of the president and when so acting
shall have all the powers of and be subject to all the restrictions upon the
president; and shall perform such other duties as from time to time may be
assigned to him by the president or by the Trustees. The Trustees may designate
one or more vice presidents as executive vice president or as vice president for
particular areas of responsibility.

     Section 10.  SECRETARY.  The secretary shall (a) keep the minutes of the
                  ---------
proceedings of the shareholders, the Trustees and committees of the Trustees in
one or more books provided for that purpose; (b) see that all notices are duly
given in accordance with the provisions of these Bylaws or as required by law;
(c) be custodian of the trust records and of the seal of the Trust; (d) keep a
register of the post office address of each shareholder which shall be furnished
to the secretary by such shareholder; (e) have general charge of the share
transfer books of the Trust; and (f) in general perform such other duties as
from time to time may be assigned to him by the chief executive officer, the
president or by the Trustees.

     Section 11.  TREASURER. The treasurer shall have the custody of the funds
                  ---------
and securities of the Trust and shall keep full and accurate accounts of
receipts and disbursements in books belonging to the Trust and shall deposit all
moneys and other valuable effects in the name and to the credit of the Trust in
such depositories as may be designated by the Trustees.

     He shall disburse the funds of the Trust as may be ordered by the Trustees,
taking proper vouchers for such disbursements, and shall render to the president
and Trustees, at the regular meetings of the Trustees or whenever they may
require it, an account of all his transactions as treasurer and of the financial
condition of the Trust.

     If required by the Trustees, he shall give the Trust a bond in such sum and
with such surety or sureties as shall be satisfactory to the Trustees for the
faithful performance of the duties of his office and for the restoration to the
Trust, in case of his death, resignation, retirement or removal from office, of
all books, papers, vouchers, moneys and other property of whatever kind in his
possession or under his control belonging to the Trust.

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     Section 12.  ASSISTANT SECRETARIES AND ASSISTANT TREASURERS.  The assistant
                  ----------------------------------------------
secretaries and assistant treasurers, in general, shall perform such duties as
shall be assigned to them by the secretary or treasurer, respectively, or by the
president or the Trustees.  The assistant treasurers shall, if required by the
Trustees, give bonds for the faithful performance of their duties in such sums
and with such surety or sureties as shall be satisfactory to the Trustees.

     Section 13.  SALARIES. The salaries of the officers shall be fixed from
                  --------
time to time by the Trustees and no officer shall be prevented from receiving
such salary by reason of the fact that he is also a Trustee.

                                  ARTICLE VI
                     CONTRACTS, LOANS, CHECKS AND DEPOSITS

     Section 1.  CONTRACTS.  The Trustees may authorize any officer or agent to
                 ---------
enter into any contract or to execute and deliver any instrument in the name of
and on behalf of the Trust and such authority may be general or confined to
specific instances.  Any agreement, deed, mortgage, lease or other document
executed by one or more of the Trustees or by an authorized person shall be
valid and binding upon the Trustees and upon the Trust when authorized or
ratified by action of the Trustees.

     Section 2.  CHECKS AND DRAFTS.  All checks, drafts or other orders for the
                 -----------------
payment of money, notes or other evidences of indebtedness issued in the name of
the Trust shall be signed by such officer or officers, agent or agents of the
Trust in such manner as shall from time to time be determined by the Trustees.

     Section 3.  DEPOSITS. All funds of the Trust not otherwise employed shall
                 --------
be deposited from time to time to the credit of the Trust in such banks, trust
companies or other depositories as the Trustees may designate.

                                       11
<PAGE>

                                  ARTICLE VII
                                    SHARES

     Section 1.  CERTIFICATES. Each shareholder shall be entitled to a
                 ------------
certificate or certificates which shall represent and certify the number of
shares of each class of beneficial interests held by him in the Trust. Each
certificate shall be signed by the chief executive officer, the president or a
vice president and countersigned by the secretary or an assistant secretary or
the treasurer or an assistant treasurer and may be sealed with the seal, if any,
of the Trust. The signatures may be either manual or facsimile. Certificates
shall be consecutively numbered; and if the Trust shall, from time to time,
issue several classes of shares, each class may have its own number series. A
certificate is valid and may be issued whether or not an officer who signed it
is still an officer when it is issued. Each certificate representing shares
which are restricted as to their transferability or voting powers, which are
preferred or limited as to their dividends or as to their allocable portion of
the assets upon liquidation or which are redeemable at the option of the Trust,
shall have a statement of such restriction, limitation, preference or redemption
provision, or a summary thereof, plainly stated on the certificate. In lieu of
such statement or summary, the Trust may set forth upon the face or back of the
certificate a statement that the Trust will furnish to any shareholder, upon
request and without charge, a full statement of such information.

     Section 2.  TRANSFERS. Certificates shall be treated as negotiable, and
                 ---------
title thereto and to the shares they represent shall be transferred by delivery
thereof to the same extent as those of a Maryland stock corporation. No
transfers of shares of the Trust shall be made if (i) void ab initio pursuant to
                                                           -- ------
any provision of the Declaration of Trust or (ii) the Board of Trustees,
pursuant to any provision of the Declaration of Trust, shall have refused to
permit the transfer of such shares. Permitted transfers of shares of the Trust
shall be made on the share records of the Trust only upon the instruction of the
registered holder thereof, or by his attorney thereunto authorized by power of
attorney duly executed and filed with the Secretary or with a transfer agent or
transfer clerk, and upon surrender of the certificate or certificates, if
issued, for such shares properly endorsed or accompanied by a duly executed
share transfer power and the payment of all taxes thereon. Upon surrender to the
Trust or the transfer agent of the Trust of a certificate for shares duly
endorsed or accompanied by proper evidence of succession, assignment or
authority to transfer, as to any transfers not prohibited by any provision of
the Declaration of Trust or by action of the Board of Trustees thereunder, it
shall be the duty of the Trust to issue a new certificate to the person entitled
thereto, cancel the old certificate and record the transaction upon its books.

     Section 3.  REPLACEMENT CERTIFICATE. Any officer designated by the Trustees
                 -----------------------
may direct a new certificate to be issued in place of any certificate previously
issued by the Trust alleged to have been lost, stolen or destroyed upon the
making of an affidavit of that fact by the person claiming the certificate to be
lost, stolen or destroyed. When authorizing the issuance of a new certificate,
the officer designated by the Trustees may, in his discretion and as a condition
precedent to the issuance thereof, require the owner of such lost, stolen or
destroyed certificate or the owner's legal representative to advertise the same
in such manner as he shall require and/or to give bond, with sufficient surety,
to the Trust to indemnify it against any loss or claim which may arise as a
result of the issuance of a new certificate.

                                       12
<PAGE>

     Section 4.  CLOSING OF TRANSFER BOOKS OR FIXING OF RECORD DATE. The
                 --------------------------------------------------
Trustees may set, in advance, a record date for the purpose of determining
shareholders entitled to notice of or to vote at any meeting of shareholders or
determining shareholders entitled to receive payment of any dividend or the
allotment of any other rights, or in order to make a determination of
shareholders for any other purpose. Such date, in any case, shall not be prior
to the close of business on the day the record date is fixed and shall be not
more than 90 days and, in the case of a meeting of shareholders not less than
ten days, before the date on which the meeting or particular action requiring
such determination of shareholders of record is to be held or taken.

     In lieu of fixing a record date, the Trustees may provide that the share
transfer books shall be closed for a stated period but not longer than 20 days.
If the share transfer books are closed for the purpose of determining
shareholders entitled to notice of or to vote at a meeting of shareholders, such
books shall be closed for at least ten days before the date of such meeting.

     If no record date is fixed and the share transfer books are not closed for
the determination of shareholders, (a) the record date for the determination of
shareholders entitled to notice of or to vote at a meeting of shareholders shall
be at the close of business on the day on which the notice of meeting is mailed
or the 30th day before the meeting, whichever is the closer date to the meeting;
and (b) the record date for the determination of shareholders entitled to
receive payment of a dividend or an allotment of any other rights shall be the
close of business on the day on which the resolution of the Trustees, declaring
the dividend or allotment of rights, is adopted.

     When a determination of shareholders entitled to vote at any meeting of
shareholders has been made as provided in this section, such determination shall
apply to any adjournment thereof, except when (i) the determination has been
made through the closing of the transfer books and the stated period of closing
has expired or (ii) the meeting is adjourned to a date more than 120 days after
the record date fixed for the original meeting, in either of which case a new
record date shall be determined as set forth herein.

     Section 5.  STOCK LEDGER.  The Trust shall maintain at its principal office
                 ------------
or at the office of its counsel, accountants or transfer agent, an original or
duplicate share ledger containing the name and address of each shareholder and
the number of shares of each class held by such shareholder.

     Section 6.  FRACTIONAL SHARES; ISSUANCE OF UNITS.  The Trustees may issue
                 ------------------------------------
fractional shares or provide for the issuance of scrip, all on such terms and
under such conditions as they may determine.  Notwithstanding any other
provision of the Declaration of Trust or these Bylaws, the Trustees may issue
units consisting of different securities of the Trust.  Any security issued in a
unit shall have the same characteristics as any identical securities issued by
the Trust, except that the Trustees may provide that for a specified period
securities of the Trust issued in such unit may be transferred on the books of
the Trust only in such unit.

                                       13
<PAGE>

                                 ARTICLE VIII
                                 DISTRIBUTIONS

     Section 1.  AUTHORIZATION.  Dividends and other distributions upon the
                 -------------
shares of the Trust may be authorized and declared by the Trustees, subject to
the provisions of law and the Declaration of Trust. Dividends may be paid in
cash, property or shares of the Trust, subject to the provisions of law and the
Declaration of Trust.

                                  ARTICLE IX
                                     SEAL

     Section 1.  SEAL.  The Trustees may authorize the adoption of a seal by the
                 ----
Trust.  The seal shall have inscribed thereon the name of the Trust and the year
of its formation.  The Trustees may authorize one or more duplicate seals and
provide for the custody thereof.

     Section 2.  AFFIXING SEAL. Whenever the Trust is required to place its seal
                 -------------
to a document, it shall be sufficient to meet the requirements of any law, rule
or regulation relating to a seal to place the word "(SEAL)" adjacent to the
signature of the person authorized to execute the document on behalf of the
Trust.

                                  ARTICLE X
                   INDEMNIFICATION AND ADVANCES FOR EXPENSES

     To the maximum extent permitted by Maryland law in effect from time to
time, the Trust, without requiring a preliminary determination of the ultimate
entitlement to indemnification, shall indemnify (a) any Trustee, officer or
shareholder or any former Trustee, officer or shareholder (including among the
foregoing, for all purposes of this Article X and without limitation, any
individual who, while a Trustee, officer or shareholder and at the express
request of the Trust, serves or has served another corporation, partnership,
joint venture, trust, employee benefit plan or any other enterprise as a
director, officer, shareholder, partner or trustee of such corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise)
who has been successful, on the merits or otherwise, in the defense of a
proceeding to which he was made a party by reason of service in such capacity,
against reasonable expenses incurred by him in connection with the proceeding,
(b) any Trustee or officer or any former Trustee or officer against any claim or
liability to which he may become subject by reason of such status unless it is
established that (i) his act or omission was material to the matter giving rise
to the proceeding and was committed in bad faith or was the result of active and
deliberate dishonesty, (ii) he actually received an improper personal benefit in
money, property or services or (iii) in the case of a criminal proceeding, he
had reasonable cause to believe that his act or omission was unlawful and (c)
each shareholder or former shareholder against any claim or liability to which
he may become subject by reason of such status. In addition, the Trust shall pay
or reimburse, in

                                       14
<PAGE>

advance of final disposition of a proceeding, reasonable expenses incurred by a
Trustee, officer or shareholder or former Trustee, officer or shareholder made a
party to a proceeding by reason such status, provided that, in the case of a
Trustee or officer, the Trust shall have received (i) a written affirmation by
the Trustee or officer of his good faith belief that he has met the applicable
standard of conduct necessary for indemnification by the Trust as authorized by
these Bylaws and (ii) a written undertaking by or on its behalf to repay the
amount paid or reimbursed by the Trust if it shall ultimately be determined that
the applicable standard of conduct was not met. The Trust may, with the approval
of its Trustees, provide such indemnification or payment or reimbursement of
expenses to any Trustee, officer or shareholder or any former Trustee, officer
or shareholder who served a predecessor of the Trust and to any employee or
agent of the Trust or a predecessor of the Trust. Neither the amendment nor
repeal of this Article, nor the adoption or amendment of any other provision of
the Declaration of Trust or these Bylaws inconsistent with this Article, shall
apply to or affect in any respect the applicability of this Article with respect
to any act or failure to act which occurred prior to such amendment, repeal or
adoption.

     Any indemnification or payment or reimbursement of the expenses permitted
by these Bylaws shall be furnished in accordance with the procedures provided
for indemnification or payment or reimbursement of expenses, as the case may be,
under Section 2-418 of the MGCL for directors of Maryland corporations. The
Trust may provide to Trustees, officers and shareholders such other and further
indemnification or payment or reimbursement of expenses, as the case may be, to
the fullest extent permitted by the MGCL, as in effect from time to time, for
directors of Maryland corporations.

                                  ARTICLE XI
                               WAIVER OF NOTICE

     Whenever any notice is required to be given pursuant to the Declaration of
Trust or Bylaws or pursuant to applicable law, a waiver thereof in writing,
signed by the person or persons entitled to such notice, whether before or after
the time stated therein, shall be deemed equivalent to the giving of such
notice.  Neither the business to be transacted at nor the purpose of any meeting
need be set forth in the waiver of notice, unless specifically required by
statute.  The attendance of any person at any meeting shall constitute a waiver
of notice of such meeting, except where such person attends a meeting for the
express purpose of objecting to the transaction of any business on the ground
that the meeting is not lawfully called or convened.

                                 ARTICLE XII
                              AMENDMENT OF BYLAWS

     The Trustees shall have the exclusive power to adopt, alter or repeal any
provision of these Bylaws and to make new Bylaws.

                                       15
<PAGE>

                                 ARTICLE XIII
                                 MISCELLANEOUS

     All references to the Declaration of Trust shall include any amendments
thereto.

                                       16<PAGE>

                                                                    EXHIBIT 10.7

                         LIMITED PARTNERSHIP AGREEMENT
                                      OF
                      E & P FINANCING LIMITED PARTNERSHIP

     THIS LIMITED PARTNERSHIP AGREEMENT (this "Agreement") of E & P FINANCING
LIMITED PARTNERSHIP (the "Partnership"), is made and entered into as of the
_____ day of ____________, 1999, by and between E & P REIT TRUST, a Maryland
real estate investment trust, (the "General Partner"), and Supertel Hospitality,
Inc., a Delaware corporation, (the "Limited Partner") (collectively, the
"Partners" and individually, a "Partner").

     NOW, THEREFORE, in consideration of the promises and mutual covenants and
agreements between the parties hereto, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereby agree as follows:

                                   ARTICLE I
                           FORMATION OF PARTNERSHIP
                           ------------------------

          1.1  Name.  The name of the Partnership shall be E & P Financing
               ----
Limited Partnership.

          1.2  Term.  The Partnership shall continue until December 31, 2050,
               ----
unless sooner terminated as hereinafter provided or by operation of law.

          1.3  Purpose.  The purpose and nature of the business to be conducted
               -------
by the Partnership is to own, operate, lease, or otherwise deal solely with the
Partnership Property.  The Limited Partner and the General Partner shall also be
empowered to do any and all acts and things necessary or prudent to ensure that
the Partnership will not be classified as a "publicly traded partnership" for
the purposes of Section 7704(a) of the Code.

          1.4  Specified Office.  The specified office and place of business of
               ----------------
the Partnership, and where the records of the Partnership shall be kept, shall
be 12301 Old Columbia Pike, Suite 300, Silver Spring, Maryland 20904.

          1.5  Registered Agent.  The initial registered agent shall be David E.
               ----------------
Raderman, Esquire, Gallagher Evelius & Jones, LLP, 218 North Charles Street,
Suite 400, Baltimore, Maryland 21201.

          1.6  Defined Terms.
               -------------

               "Property" or "Properties" means any hotel properties (plus any
personal property incidental thereto) as set forth in Exhibit A hereto.
<PAGE>

                                  ARTICLE II
                PERCENTAGE INTERESTS AND CAPITAL CONTRIBUTIONS
                ----------------------------------------------

          2.1  Percentage Interests and Initial Capital Contributions.  Each
               ------------------------------------------------------
Partner's address and percentage interest in the Partnership ("Percentage
Interest") are as follows:

                                                       Percentage
          Partner                                      Interest
          -------                                      --------

          Limited Partner:                             99%
          309 North 5/th/ Street
          P.O. Box 1448
          Norfolk, Nebraska 68702

          General Partner:                              1%
          309 North 5/th/ Street
          P.O. Box 1448
          Norfolk, Nebraska 68702

          The General Partner's initial contribution to the capital of the
Partnership shall be an undivided interest in one percent (1%) of the
Properties. The Limited Partner's initial contribution to the capital of the
Partnership shall be an undivided interest in ninety-nine percent (99%) of the
Properties.

          2.2  Additional Contributions.  As and when the Partnership shall
               ------------------------
require funds to meet the costs and expenses of all business activities with
respect to the Partnership, the General Partner shall contribute to the
Partnership such required funds as may be determined by the General Partner. The
Limited Partner shall have no obligation to contribute any funds pursuant to
this Section 2.2.

                                  ARTICLE III
                                  MANAGEMENT
                                  ----------

          3.1  Authority of the General Partner; Indemnification.  The overall
               -------------------------------------------------
management and control of the business and affairs of the Partnership shall be
vested in the General Partner.  Except as otherwise provided in this Agreement,
all decisions concerning the management of the business and affairs of the
Partnership and its assets shall be made exclusively by the General Partner, all
in accordance with the objects and purposes of the Partnership set forth in
Section 1.3.  The General Partner shall be authorized to execute documents and
take actions on behalf of the Partnership, which shall be binding on the
Partnership and on which third parties shall be entitled to rely.  The
Partnership shall indemnify each Partner for any costs and/or expenses incurred
in connection with actions taken in good faith on behalf of the Partnership.

                                       2
<PAGE>

                                  ARTICLE IV
                                 DISTRIBUTIONS
                                 -------------

          4.1  Definition of Net Cash Flow.  As used herein, the term "Net Cash
               ---------------------------
Flow" for any period shall mean the excess, if any, of (i) the cash receipts of
the Partnership (other than from a Terminating Capital Transaction (as
hereinafter defined)) and amounts withdrawn from reserves, over (ii)
disbursements of cash by the Partnership (other than distributions to Partners
and amounts paid with receipts from a Terminating Capital Transaction),
including the payment of operating expenses, debt-service on any mortgage or
deed of trust encumbering the Partnership's property, capital expenditures, and
such amounts as may be required by the Partnership (as reasonably determined by
the General Partner) to pay Partnership expenses and to maintain reserves and
working capital.

          4.2  Distribution of Net Cash Flow.  Net Cash Flow shall be
               -----------------------------
distributed on a quarterly basis (or, at the election of the General Partner on
a more frequent basis) among the Partners at such time or times as shall be
determined by the General Partner in accordance with their respective Percentage
Interests.

          4.3  Distribution of Proceeds from Terminating Capital Transaction.
               -------------------------------------------------------------

               (a)  Any net proceeds from the sale, exchange or other
disposition of all or substantially all of the assets of the Partnership, in
connection with a dissolution or termination of the Partnership (a "Terminating
Capital Transaction"), shall be distributed to the Partners who have positive
Capital Account balances (as hereinafter defined) in accordance with their
respective positive Capital Account balances. For purposes of the preceding
sentence, the Capital Account of each Partner shall be determined after all
adjustments made in accordance with Article V and Section 4.2 resulting from
Partnership operations and from all sales and dispositions of all or any part of
the Partnership's assets. Any distributions pursuant to this Section 4.3(a)
shall be made by the end of the Partnership's taxable year in which liquidation
occurs (or, if later, within 90 days after the date of the liquidation).

               (b)  If the General Partner has a negative balance in its Capital
Account following a liquidation of the Partnership, as determined after taking
into account all Capital Account adjustments in accordance with Article V and
Section 4.2 resulting from Partnership operations and from all sales and
dispositions of all or any part of the Partnership's assets, the General Partner
shall contribute to the Partnership an amount of cash equal to the negative
balance in its Capital Account and such cash shall be distributed by the
Partnership to creditors, if any, and then to the Limited Partner in accordance
with Section 4.3(a). Such contribution by the General Partner shall be made by
the end of the Partnership's taxable year in which the liquidation occurs (or,
if later, within 90 days after the date of the liquidation).

                                       3
<PAGE>

                                   ARTICLE V
                     CAPITAL ACCOUNTS; PROFITS AND LOSSES
                     ------------------------------------

          5.1  Capital Accounts.  The General Partner, on behalf of the
               ----------------
Partnership, shall establish and maintain, or cause to be established and
maintained, a capital account ("Capital Account") for each Partner in accordance
with the rules described in Treasury Regulation Section 1.704-1(b)(2)(iv).

          5.2  Definition of Profit and Loss.  "Profit" and "Loss" and any items
               -----------------------------
of income, gain, expense, or loss referred to in this Agreement shall be
determined in accordance with federal income tax accounting principles, as
modified by Treasury Regulations Section 1.704-1(b)(2)(iv), except that Profit
and Loss shall not include items allocable pursuant to Section 5.4, 5.5 or 5.6.
All allocations of income, Profit, gain, Loss, and expense (and all items
contained therein) for federal income tax purposes shall be identical to all
allocations of such items set forth in this Article V, except as otherwise
required by Section 704(c) of the Internal Revenue Code of 1986, as amended (the
"Code"), and Treasury Regulations Section 1.704-1(b)(4).

          5.3  Allocation of Profit and Loss.  Except as otherwise provided in
               -----------------------------
this Article V, Profit and Loss of the Partnership shall be allocated among the
Partners in accordance with their respective Percentage Interests.

          5.4  Minimum Gain Chargeback.  Notwithstanding any provision to the
               -----------------------
contrary, (i) any expense of the Partnership that is a "nonrecourse deduction"
within the meaning of Treasury Regulations Section 1.704-2(b)(1) shall be
allocated in accordance with the Partners' respective Percentage Interests, (ii)
any expense of the Partnership that is a "partner nonrecourse deduction" within
the meaning of Treasury Regulations Sections 1.704-2(i)(2) shall be allocated in
accordance with Treasury Regulation Sections 1.704-2(i)(1), (iii) if there is a
net decrease in Partnership Minimum Gain (as hereinafter defined) within the
meaning of Treasury Regulations Section 1.704-2(f)(1) for any Partnership
taxable year, items of gain and income shall be allocated among the Partners in
accordance with Treasury Regulations Section 1.704-2(f) and the ordering rules
contained in Treasury Regulations Section 1.704-2(j), and (iv) if there is a net
decrease in Partner Nonrecourse Debt Minimum Gain (as hereinafter defined)
within the meaning of Treasury Regulations Section 1.704-2(i)(4) for any
Partnership taxable year, items of gain and income shall be allocated among the
Partners in accordance with Treasury Regulations Section 1.704-2(i)(4) and the
ordering rules contained in Treasury Regulations Section 1.704-2(j). A Partner's
"interest in partnership profits" for purposes of determining its share of the
nonrecourse liabilities of the Partnership within the meaning of Treasury
Regulations Section 1.752-3(a)(3) shall be such Partner's Percentage Interest,
"Partnership Minimum Gain" shall have the meaning set forth in Treasury
Regulations Section 1.704-2(d). A Partner's share of Partnership Minimum Gain
shall be determined in accordance with Treasury Regulations Section 1.704-
2(g)(1). "Partner Nonrecourse Debt Minimum Gain" shall have the meaning set
forth in Treasury Regulations Section 1.704-2(i). A Partner's share of Partner
Nonrecourse Debt Minimum Gain shall be determined in accordance with Treasury
Regulations Section 1.704-2(i)(5).

          5.5  Qualified Income Offset.  If the Limited Partner receives in any
               -----------------------
taxable year an

                                       4
<PAGE>

adjustment, allocation or distribution described in subparagraphs (4), (5), or
(6) of Treasury Regulations Section 1.704-1(b)(2)(ii)(d) that causes or
increases a negative balance in such Partner's Capital Account that exceeds the
sum of such Partner's shares of Partnership Minimum Gain and Partner Nonrecourse
Debt Minimum Gain, as determined in accordance with Treasury Regulations Section
1.704-2(g) and 1.704-2(i), such Partner shall be allocated specially for such
taxable year (and, if necessary, later taxable years) items of income and gain
in an amount and manner sufficient to eliminate such negative Capital Account
balance as quickly as possible as provided in Treasury Regulations Section
1.704-1(b)(2)(ii)(d). After the occurrence of an allocation of income or gain to
the Limited Partner in accordance with this Section 5.5, to the extent permitted
by Treasury Regulations Section 1.704-1(b) and Section 5.6 hereof, items of
expense or loss shall be allocated to such Partner in an amount necessary to
offset the income or gain previously allocated to such Partner under this
Section 5.5.

          5.6  Capital Account Deficits.  Loss shall not be allocated to the
               ------------------------
Limited Partner to the extent that such allocation would cause a deficit in such
Partner's Capital Account (after reduction to reflect items described in
Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6)) to exceed the
sum of such Partner's shares of Partnership Minimum Gain and Partner Nonrecourse
Debt Minimum Gain.  Any Loss in excess of that limitation shall be allocated to
the General Partner.  After the occurrence of an allocation of Loss to the
General Partner in accordance with this Section 5.6, to the extent permitted by
Treasury Regulations Section 1.704-1(b), Profit shall be allocated to such
Partner in an amount necessary to offset the Loss previously allocated to such
Partner under this Section 5.6.

                                  ARTICLE VI
                            TRANSFERS; TERMINATION
                            ----------------------

          6.1  Transfers.  A Partner may transfer, sell, assign, mortgage, grant
               ---------
a lien on, give or otherwise dispose of ("Transfer"), all or any part of its
interest in the Partnership ("Partnership Interest") to any person.

          6.2  Termination.
               -----------

               (a)  The Partnership shall terminate upon the first to occur of
any of the following events or dates:

                    (i)    in accordance with Section 1.2 above;

                    (ii)   by written agreement of the Partners;

                    (iii)  by the sale or other disposition of all or
                           substantially all of the assets of the Partnership;

                    (iv)   in the event of the retirement, resignation,
                           expulsion, bankruptcy, death, insanity, incompetence,
                           liquidation, termination or legal incapacity of the
                           General Partner, if hereof;

                                       5
<PAGE>

                           or

                    (v)    if for any reason there remains only one Partner.

               (b)  Upon termination of the Partnership under Section 6.2(a),
the Partnership shall discharge the obligations and pay the indebtedness of the
Partnership, or provide therefor, and distribute the balance, if any, of the
assets of the Partnership to the Partners as set forth in Section 4.3. After the
foregoing has been accomplished, it shall be deemed that the Partnership has
been liquidated and this Agreement shall terminate and no Partner shall have any
further rights or obligations hereunder. The liquidation of the Partnership and
the termination of the business and affairs of the Partnership shall be
conducted by the General Partner. During such period, the business and affairs
of the Partnership shall be conducted so as to maintain and preserve the assets
of the Partnership in a manner consistent with the liquidation of the
Partnership.

                                  ARTICLE VII
                        BOOKS, RECORDS, AND ACCOUNTING
                        ------------------------------

          7.1  Fiscal and Taxable Year.  The fiscal and taxable year of the
               -----------------------
Partnership shall be the calendar year.

          7.2  Method of Accounting.  The General Partner shall keep, or cause
               --------------------
to be kept, full and accurate records of all transactions of the Partnership in
accordance with a method of accounting that is (i) permissible under the Code
and (ii) agreed to by the Partners.

          7.3  Books and Records.  All books and records of the Partnership
               -----------------
shall, at all times be maintained at the principal office of the Partnership or
at such other place as shall be determined by the General Partner.

          7.4  Federal Tax Returns.  The General Partner shall prepare, or cause
               -------------------
to be prepared, at the expense of the Partnership, any federal information tax
return required by the Code, and any required state and local tax returns for
the Partnership for each taxable year of the Partnership.

          7.5  Tax Return Information.  The General Partner shall cause to be
               ----------------------
delivered to the Limited Partner such information as shall be necessary for the
preparation by the Limited Partner of its federal, state and local income and
other tax returns.

          7.6  Tax Matters Partner.  The General Partner shall be the Tax
               -------------------
Matters Partner of the Partnership within the meaning of Section 6231 of the
Code. All elections required or permitted to be made by the Partnership under
the Code shall be made by the General Partner in its sole discretion.

                                       6
<PAGE>

                                 ARTICLE VIII
                                    GENERAL
                                    -------

          8.1  Other Businesses.  The Partners shall have the right to engage in
               ----------------
other businesses and ventures of any nature which are allowed by their
respective organizational documents, including, without limitation, the
ownership, management, improvement and operation of other real estate and
neither the Partnership nor the other Partners shall have any right in such
independent ventures or to the income or profits derived therefrom.

          8.2  Notice.  All notices, instructions, requests, demands or other
               ------
communications that are required or permitted to be given hereunder shall be in
writing and shall be deemed to have been duly given when delivered by hand or
when deposited in the United States Mail, by registered or certified mail,
return receipt requested, postage prepaid to the addresses set forth in Article
II or at such different address as shall be specified by notice given in the
manner described herein.

          8.3  Applicable Law. This Agreement and the obligations of the parties
               --------------
hereunder shall be interpreted, construed and enforced in accordance with the
laws of the State of Maryland.

          8.4  Entire Agreement; Amendments.  This Agreement contains the entire
               ----------------------------
agreement among the parties hereto relative to the operation of the Partnership.
No variations, modifications or changes in this Agreement shall be binding upon
a party unless set forth in a document duly executed by or on behalf of such
party.

          8.5  Waiver.  No consent or waiver, expressed or implied, by any party
               ------
thereto of any breach or default by any other party hereto in the performance of
its obligations hereunder shall be deemed or construed to be a consent or waiver
to or of any other breach or default in the performance by such party of the
same or any other obligations of such party hereunder. Failure on the part of
any party to complain of any act or failure to act of another party or to
declare any other party in default, irrespective of how long such failure
continues, shall not constitute a waiver by such party of its rights hereunder.

          8.6  Severability.  If any provision of this Agreement or the
               ------------
application thereof to any person or circumstance shall be invalid or
unenforceable to any extent, the remainder of this Agreement and the application
of such provisions to other persons or circumstances shall not be affected
thereby and shall be enforced to the greatest extent permitted by law.

          8.7  Counterparts.  This Agreement may be executed in counterparts and
               ------------
as so executed shall constitute one Agreement.

          8.8  Captions.  Captions and headings contained in this Agreement are
               --------
inserted only as a matter of convenience and in no way define, limit, extend or
describe the scope of this Agreement or the intent of any provisions hereof.

          8.9  Waiver of Partition.  Each Partner hereby irrevocably waives any
               -------------------
right to partition the Property.

                                       7
<PAGE>

          8.10  Attorney Fees.  In the event of any litigation between the
                -------------
Partners arising out of this Agreement or relating to the Partnership, the
prevailing party shall be entitled to recover from the nonprevailing party its
reasonable attorneys fees and costs at the trial and all appellate levels.

          8.11  Binding Effect.  Except as otherwise provided in this Agreement,
                --------------
every covenant, term and provision of this Agreement shall be binding upon and
inure to the benefit of the Partners and their respective heirs, legatees, legal
representatives and permitted successors, transferees and assigns.

          IN WITNESS WHEREOF, this Limited Partnership Agreement is executed as
of date first set forth above.

                              GENERAL PARTNER:
                              ---------------

                              E & P REIT TRUST,
                              a Maryland real estate investment trust

                              By:_________________________________________
                                 Name:  _____________________
                                 Title: President

                              LIMITED PARTNER:
                              ---------------

                              SUPERTEL HOSPITALITY, INC., a
                              Delaware corporation

                              By:_________________________________________
                                 Name:  _____________________
                                 Title: President

                                       8

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