Governor Morris hotel in Morristown, N.J.
for Approximately $35.1 million
|PALM BEACH, Fla. - May 13, 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 has acquired the newly renovated 224-room Westin Governor Morris
hotel in Morristown, N.J. for approximately $35.1 million. The acquisition
will be funded by borrowing on the company's unsecured line of credit.
Innkeepers Hospitality Management, Inc. will manage the property. Jeffrey H. Fisher, chief executive officer and president of Innkeepers USA Trust, owns Innkeepers Hospitality Management.
"This acquisition is an example of our prudent strategy to grow opportunistically and diversify," said Jeffrey H. Fisher, chief executive officer and president. Innkeepers' acquisition program targets high-quality assets in high-barrier, high-demand markets at attractive prices. "The Westin Morristown is an upper upscale, full-service property -- our first in this segment -- in a high-barrier market with strong corporate demand and little supply of comparable quality. The hotel is in top physical condition following a recently completed, multi-million dollar renovation that positions this property to assume a leadership role among its competitive set.
"In addition to the property's locational advantages, including its proximity to New York, we acquired this like-new asset at a price significantly below replacement cost," Fisher added. "While our primary acquisition target remains upscale extended stay, the economics of this deal were compelling, especially in today's competitive real estate market. We will continue to look for opportunistic acquisitions in alternative segments and brands in high-barrier locations, particularly hotels that are underperforming or ripe for repositioning."
The refurbishment created an additional 10,000 square feet of meeting, breakout and event space (for a total of 25,000 square feet), an elegant new signature restaurant and martini lounge, a new espresso bar and an expansive fitness center aside from the complete upgrading of the existing spaces, structure and mechanicals. The hotel also features all of Westin's branded signature amenities and services, such as the Westin Heavenly Bed, Westin Heavenly Bath, and a WestinWORKOUT Powered by Reebok fitness center, in addition to the enhanced amenities exclusive to the Westin Governor Morris.
Peter Willis, Innkeeper's vice president of business development, noted that the company continues to have an aggressive appetite for hotel acquisitions, including upscale extended stay and premium limited service brands, the core of the company's portfolio; selected full-service properties; and turn-around opportunities and hotels that are affiliated with, or have the potential to be converted to, the industry's top brands.
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 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:||The Landmark Westin Governor Morris Receiving Multi-Million Dollar Transformation; Sleek New Look from Designer Dayna Lee / May 2004|
|Amerimar Enterprises and Angelo, Gordon Purchase The Westin Morristown; Will Revitalize Property with $15.2 Million Renovation / January 2004|