Innkeepers Completes Acquisition of Hotel Leases

PALM BEACH, FL-Innkeepers USA Trust, a locally based hotel REIT, has completed its acquisition of all 59 hotel leases from Innkeepers Hospitality, its main lessee, and six hotel leases from affiliates of Wyndham International Inc.Innkeepers USA Trust acquired the first 23 leases from Innkeepers Hospitality on Dec. 1, 2003, 11 more leases by Dec. 31, 24 more leases by Feb. 1, and the final hotel lease March 1. The company acquired one hotel lease from an affiliate of Wyndham International on March 1, 2003, and five other leases April 1, 2004.Company taxable REIT subsidiaries have entered into agreements with Innkeepers Hospitality Management Inc. to management all 65 hotels, which previously were managed by Innkeepers Hospitality Management affiliates.The Innkeepers Hospitality leases were acquired for about $5.5 million combined. Innkeepers ended the Wyndham leases with no cash consideration and entered into new leases, with the same financial terms as the existing leases, with Innkeepers’ taxable REIT subsidiaries.