Cerberus and Chatham Lodging Trust Win Auction to Acquire Innkeepers Assets
NEW YORK and PALM BEACH, Fla., May 3, 2011 /PRNewswire/ -- Cerberus Capital Management, L.P. ("Cerberus") and Chatham Lodging Trust (NYSE: CLDT) announced today that a joint venture formed by Cerberus and Chatham was selected as the winning bidder in the bankruptcy court auction related to 64 Innkeepers USA Trust hotels. Under the terms of the winning bid, the newly-formed joint venture agreed to purchase the hotels for a total purchase price of approximately $1.125 billion, including the assumption of debt.
"We are pleased that our joint venture with Chatham Lodging Trust has been selected as the winning bidder for most of Innkeepers' hotels," said Tim Price, Managing Director and spokesperson at Cerberus. "Our ability to work with Innkeepers founder and former CEO Jeff Fisher, now CEO at Chatham, is great news for the company and for its employees. No one knows Innkeepers better than Jeff, and we are excited about the company's future prospects with a new capital structure in place."
Jeff Fisher, CEO of Chatham, said, "We are excited to acquire these premium-branded select-service hotels early in the recovery of the lodging industry. With a new capital structure in place, a committed partner in Cerberus and strong franchisor affiliation, our joint venture is well positioned to create value for our Shareholders and Cerberus."
Barclays Capital acted as financial advisor to Chatham.
Completion of the transaction is contingent upon satisfaction of certain conditions, including bankruptcy court approval.
About Cerberus Capital Management, L.P.
Established in 1992, Cerberus Capital Management, L.P., together with its affiliates, is one of the world's leading private investment firms, with approximately $23 billion under management. Through its team of investment and operations professionals, Cerberus specializes in providing both financial resources and operational expertise to help transform undervalued companies into industry leaders for long-term success and value creation. Cerberus is headquartered in New York City with affiliate and/or advisory offices in the US, Europe and Asia.
About Chatham Lodging Trust
Chatham Lodging Trust is a self-advised real estate investment trust that was organized to invest in upscale extended-stay hotels and premium-branded select-service hotels. The company currently owns 13 hotels with an aggregate of 1,650 rooms/suites in nine states and has one hotel comprising 174 rooms under contract to purchase. Additional information about Chatham may be found at www.chathamlodgingtrust.com.
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SOURCE Cerberus Capital Management, L.P.