Additional Hotel Leases from Innkeepers Hospitality
|PALM BEACH, Fla., January 8, 2004 — Innkeepers USA Trust (NYSE: KPA),
a hotel real estate investment trust (REIT) and a leading owner of upscale,
extended-stay hotel properties throughout the United States, today announced
that it had completed the acquisition of 11 additional hotel leases from
its principal lessee, Innkeepers Hospitality. The 11 leases are among
the 60 hotel leases that the company previously announced it would acquire
from Innkeepers Hospitality as allowed by the REIT Modernization Act (RMA).
In early December, the company acquired the first 23 leases from Innkeepers
The company has paid Innkeepers Hospitality approximately $3.9 million of the total $5.25 million total in connection with the acquisition of the first 34 leases.
Simultaneously with the closing, taxable REIT subsidiaries of the company entered into management agreements with an Innkeepers Hospitality affiliate for the management of the 11 hotels. Innkeepers Hospitality is controlled by Jeffrey H. Fisher, who also is the chief executive officer, president and chairman of the board of trustees of Innkeepers USA Trust.
The company said that it currently expects to complete the acquisition of the remaining 26 leases held by Innkeepers Hospitality in the first quarter of 2004. The Innkeepers Hospitality affiliate that will manage the hotels must obtain additional management contracts with owners not affiliated with the company so as to qualify as an ‘eligible independent contractor,’ as defined by the RMA, with respect to the hotels covered by the remaining 26 leases.
Innkeepers USA Trust is a hotel real estate investment trust (REIT) and a leading owner of upscale, extended-stay hotel properties throughout the United States. The company owns 67 hotels with a total of 8,311 suites or rooms in 22 states and focuses on acquiring and/or developing Residence Inns by Marriott and other upscale extended-stay hotels and the rebranding and repositioning of other hotel properties.
Cautionary statements set forth in reports filed by the company from time to time with the Securities and Exchange Commission discuss important factors impacting, or that could impact, the company and its results or forecasted results.
Innkeepers USA Trust
CFO, Treasurer and EVP
(561) 835-1800 x302
|Also See:||Innkeepers Acquires Quality Inn Beach Block Hotel in Atlantic City, N.J. for $8.6 million; Will Convert to Courtyard by Marriott / June 2003|