Release of 1st Qtr Results Until Issues Are Resolved
|PALM BEACH, Fla., May 10, 2005 — 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 is postponing release of its first quarter financial results and
the conference call to discuss first quarter results previously scheduled
for today, Tuesday, May 10, 2005.
The company recently became aware of a potential loss from misappropriation of receipts on hotel accounts receivable by a hotel general manager at one of the company’s 68 hotels.
An investigation is continuing with respect to this matter; however, the company believes that it has quantified the probable maximum potential loss and believes that the potential misappropriation is limited to one hotel. Innkeepers expects to record an approximately $430,000 charge against first quarter 2005 earnings relating to the potential misappropriation of receipts. The company and its auditors are confirming the company’s proposed accounting treatment and are reviewing the company’s internal controls as they relate to this issue.
The company intends to pursue a recovery of any loss relating to this issue under its existing insurance policies, although there can be no assurance that such recovery will be obtained. Innkeepers reaffirms its previous earnings and RevPAR guidance provided in February 2005, and said it currently expects to release first quarter 2005 earnings and reschedule the related conference call on or before Monday, May 16, 2005.
Innkeepers USA Trust owns 68 hotels with a total of 8,521 suites or rooms in 20 states and Washington, D.C., and focuses on acquiring and/or developing upscale and upscale extended-stay hotels with premium brands 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 SEC discuss important factors impacting, or that could impact, the company and its results or forecasted results.
Innkeepers USA Trust
|Also See:||Innkeepers USA Trust Acquires former Holiday Inn in Montvale, N.J.; Property Will Undergo $5 Million Renovation and Convert to Courtyard / February 2005|
|Innkeepers USA Trust Acquires the 105-suite Doubletree Guest Suites Hotel in downtown Washington, D.C., for $23 million / January 2005|