These leases are part of 60 the company said it would acquire from Innkeepers Hospitality in a move allowed by the REIT Modernization Act. Innkeepers USA Trust has agreed to pay a nearly $5.3 million cash consideration for all 60 leases. The company has formed wholly owned taxable REIT subsidiaries to acquire the leases.

At the time of the closing of the 23 leases, company taxable REIT subsidiaries entered into management agreements with an affiliate of Innkeepers Hospitality to manage the 23 hotels.

Under the acquisition agreement, Innkeepers Hospitality is paying off its liabilities, including its outstanding line of credit, and will sell all the Innkeepers USA Trust shares it owns. That figure, as of Nov. 1, was about 247,000 common shares and 20,500 Series A preferred shares. All of them were acquired in the open market.