(Mark your calendars: RealShare HOTELS 2011, Sept. 15 at the Hilton New York, and don't forget RealShare New York takes place Oct. 12 at the Marriott Marquis.)
NEW YORK CITY-A joint venture of hotel REIT Chatham Lodging Trust and New York City-based Cerberus Capital Management decided to pull the plug on an agreement to acquire interests in the 64-hotel Innkeepers portfolio, a deal valued at $1.125 billion. The JV established the agreement on May 16 after winning over the Innkeepers USA Trust portfolio in a bankruptcy auction, making it one of the largest hotel transactions of the year-to-date, GlobeSt.com previously reported.
While Chatham could not be immediately reached for comment, both Chatham and Cerberus jointly determined to terminate the agreement “as a result of the occurrence of a condition, change or development that could reasonably be expected to have a material adverse effect on Innkeepers' business, assets, liabilities, operations, condition or prospects,” according to a joint statement from both companies.
However, Chatham's separate purchase of five Innkeepers hotels, which closed on July 14, was not affected by this decision. GlobeSt.com reported that Chatham was the winning bidder and purchased the Residence Inn Mission Valley, Residence Inn Anaheim, Doubletree Washington, DC, Residence Inn Tyson’s Corner, and Homewood Suites San Antonio for $195 million.
Be sure to check GlobeSt.com tomorrow for a news analysis about this agreement.
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.
