PALM BEACH, Fla.—(BUSINESS WIRE)—June 2, 2003—Innkeepers USA Trust (NYSE: KPA), a hotel real estate investment trust (REIT) and a leading owner of upscale, extended-stay hotel properties throughout the U.S., today announced it has acquired the 203-room Quality Inn Beach Block Hotel in Atlantic City, N.J. for $8.6 million.
The 16-story building is within one block of Atlantic City`s Boardwalk and beaches and is a short walking distance to the Trump`s Taj Mahal, Resorts International and Bally`s casinos and the Atlantic City Convention Center. The hotel will undergo an extensive renovation and repositioning program and will be converted to the Courtyard by Marriott brand.
“Atlantic City is within a three-hour drive for about one-third of the U.S. population,” said Jeffrey H. Fisher, Innkeepers` chief executive officer and president. “We acquired this well-located property for approximately $42,000 a key. Following the conversion to a Courtyard by Marriott, it will be the only premium-branded, non-casino property in Atlantic City, which we believe will give us a strong competitive advantage.”
The hotel will close in late October following the peak summer season and undergo an approximate $8.4 million renovation, with a target opening as the Atlantic City Courtyard by Marriott in late 2004.
“We continue to seek growth opportunities both through acquisitions and selective new construction, such as our recently opened Residence Inn by Marriott in Saddle River, N.J.,” said David Bulger, chief financial officer, treasurer and executive vice president. “Innkeepers is low-levered and has the financial strength and flexibility to acquire attractively priced properties.”
Innkeepers USA Trust is a hotel real estate investment trust (REIT) and a leading owner of upscale, extended-stay hotel properties throughout the U.S. The company owns 68 hotels with a total of 8,399 suites or rooms in 23 states and focuses on acquiring and/or developing Residence Inns by Marriott and other upscale extended-stay hotels and the rebranding and repositioning of other hotel properties. For more information about Innkeepers USA Trust, visit the company`s web site at www.innkeepersusa.com.
Cautionary statements set forth in reports filed by the company from time to time with the Securities and Exchange Commission discuss important factors impacting, or that could impact, the company and its results or forecasted results. These factors include, without limitation, (i) risks that war, terrorism or similar activities, widespread health alerts, disruption in oil imports or changes in domestic or international political environments, have and may continue to negatively affect the travel industry and the company, and the negative effects of such events that may occur in the future cannot be fully anticipated, (ii) the relative strength and performance of businesses and industries that are important demand generators in the company`s key markets, (iii) international, national, regional and local economic conditions that will, among other things, affect demand for the company`s hotel rooms and the availability and terms of financing, (iv) the company`s ability to maintain its properties in competitive condition, (v) the company`s ability to acquire or develop additional properties and risks that potential acquisitions or developments may not perform in accordance with expectations, (vi) changes in travel patterns or the prevailing means of commerce, i.e., e-commerce, and (vii) the complex tax rules that the company must satisfy to qualify as a REIT, and other governmental regulation.