Jeffrey H. Fisher, who has a controlling interest in and is president of Innkeepers Hospitality, says in a statement that the transaction has been structured to be economically neutral to Innkeepers Hospitality and Marriott. "Innkeepers Hospitality will pay a termination fee to Marriott over time and will enter into long-term franchise agreements," said Fisher, who is also president and CEO of Innkeepers USA Trust, a publicly traded hotel REIT and owner of upscale, extended-stay hotels.
"This completes our long-term strategy to consolidate the management of our hotels under a single umbrella," Fisher states.
The transaction will be implemented over several months and will enable the lessee and Innkeepers USA Trust to have more control over the assets and to benefit from a business travel and economic recovery. The deal also has other benefits, including economies of scale.
"We will continue to have a strong relationship with Marriott as a franchise partner and intend to leverage that relationship in a variety of ways going forward, including future acquisitions when market conditions allow," he says. Marriott is franchisor of 48 of the 67 hotels Innkeepers USA Trust owns.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
