Innkeepers Concludes Successful Auction to Identify Plan Sponsors

NEW YORK--()--Innkeepers USA Trust and certain of its affiliates and subsidiaries (“Innkeepers” or the “Company”) today concluded a two-day auction that determined the sponsors of the Company’s Plan of Reorganization and yielded an increase in value of more than $145 million when compared to the stalking horse bid approved by the Bankruptcy Court.

The first successful proposal was submitted by a joint venture between the private-equity firm Cerberus Capital Management, L.P. and real estate investment trust Chatham Lodging. The joint venture agreed to acquire the Debtors’ interests in the portfolio of hotel properties that comprise the collateral for Innkeepers’ $825.4 million fixed rate mortgage pool loan and the $238 million floating rate mortgage pool loan. The final purchase price to be paid by the joint venture is $1.1 billion.

The second successful proposal was submitted by Chatham Lodging for the five properties (Residence Inn Mission Valley, Residence Inn Anaheim (Garden Grove), Doubletree Washington, DC, Residence Inn Tyson’s Corner, and Homewood Suites San Antonio) that serve as collateral for loan trusts serviced by LNR Partners LLC. The final purchase price is $195 million.

“The outcome of the auction represents a tremendous success for the Company and its stakeholders,” said Marc Beilinson, the Company’s Chief Restructuring Officer. Mr. Beilinson added, “The Debtors and their professionals worked tirelessly to foster and promote spirited bidding on the Company’s assets. The results achieved mark the successful conclusion of a robust marketing process that was commenced by the Company in September 2011. We look forward to closing these transactions and emerging from chapter 11.”

A hearing on Innkeepers’ disclosure statement will take place on May 10 and Innkeepers expects that a hearing on confirmation of their Plan of Reorganization will take place on June 23.

The chapter 11 cases are pending in the United States Bankruptcy Court for the Southern District of New York. For access to court documents and other general information about the chapter 11 cases, please visit www.omnimgt.com/innkeepers.

About Innkeepers USA Trust

Innkeepers USA Trust is a real estate investment trust and a leading owner of upscale and extended-stay hotel properties throughout the United States. The company currently owns interests in 71 hotels with approximately 10,000 rooms in 19 states and the District of Columbia.

Contacts

For Innkeepers:
AP Services, LLC
Michelle Campbell, 310-871-8436

Contacts

For Innkeepers:
AP Services, LLC
Michelle Campbell, 310-871-8436