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Innkeepers Completes Acquisition of 23 Hotel Leases

PALM BEACH, FL-The leases, being acquired from the REIT's main lessee, are the first of 60 hotel leases the company plans to acquire from Innkeepers Hospitality. Innkeepers USA Trust paid Innkeepers Hospitality about $3.8 million cash for the 23 leases.

By Melissa Bogdany | Updated on December 08, 2003

PALM BEACH, FL-Innkeepers USA Trust, a publicly traded hotel real estate investment trust based here, has completed its acquisition of the first 23 hotel leases from Innkeepers Hospitality, its main lessee. Innkeepers USA Trust paid Innkeepers Hospitality about $3.8 million in cash to acquire the 23 leases.

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.

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