Innkeepers USA Trust, a hotel real estate investment trust (REIT) and a leading owner of upscale, extended-stay hotel properties throughout the United States, today announced that it has signed definitive agreements to acquire three hotel assets, aggregating 378 rooms, from three unaffiliated sellers for an aggregate purchase price, including estimated closing and repositioning costs, of approximately $55 million. Innkeepers Hospitality Management, Inc., which is owned by Innkeepers’ chairman and chief executive officer, will manage the three hotels.
The nationally branded properties are located in downtown Washington, D.C., the Baltimore-Washington corridor and northern New Jersey. The Washington, D.C. acquisition is scheduled to close in December 2004, with closing on the Maryland and New Jersey hotels expected in the first quarter of 2005.
“We have been targeting the Baltimore-Washington corridor and northern New Jersey, both of which have a large number of diverse demand generators and high barriers to competition, and were able to acquire these three hotels at very attractive yields,” said Jeffrey H. Fisher, Innkeepers chief executive officer and president. “Since May of this year, we have announced seven acquisitions for a total acquisition and repositioning cost of approximately $125 million.” The company will evaluate various financing alternatives to fund the three acquisitions.
“As always, these acquisitions are subject to due diligence and customary closing conditions,” Fisher said. “We will be providing additional details as each transaction is completed.”