Innkeepers USA Announces Sale of Sunrise Suites in Tinton Falls, N.J.
April 13 2007 - 10:51AM
PR Newswire (US)
PALM BEACH, Fla., April 13 /PRNewswire-FirstCall/ -- Innkeepers USA
Trust (NYSE:KPA), a hotel real estate investment trust (REIT) and a
leading owner of upscale properties throughout the United States,
today announced that it has sold the 96-suite Sunrise Suites in
Tinton Falls, N.J. for $6.4 million, or $66,000 per key, to an
undisclosed buyer. The sales price represents a capitalization rate
of approximately 4.5 percent based upon the property's trailing 12
months net operating income. Proceeds from the sale will be used to
pay down a portion of the company's unsecured line of credit.
"After exploring several different alternatives for this
independent hotel, we determined it was in our best interests to
divest the hotel," said Jeffrey H. Fisher, Innkeepers chief
executive officer and president. "It was an excellent investment
for Innkeepers, generating a 14 percent annual return since we
acquired the property 10 years ago. As we previously announced
during our fourth quarter conference call and earnings release, we
will seek to selectively divest certain hotels from our portfolio
in 2007 as a continuation of our long-term strategy to transform
the overall quality of our portfolio by redeploying capital into
newer, more profitable assets with excellent long-term growth
potential." Innkeepers USA Trust owns 74 hotels with a total of
9,808 rooms or suites and one 355-room hotel in which it owns a 49
percent equity interest in 21 states and Washington, D.C., and
focuses on acquiring or developing premium- branded upscale
extended-stay and select-service hotels, the core of the company's
portfolio; selected full-service hotels; and turn-around
opportunities for hotels that operate under or can be converted to
the industry's leading brands. For more information about
Innkeepers USA Trust, visit the company's web site at
http://www.innkeepersusa.com/. Forward-Looking Statement Safe
Harbor This press release, and other publicly available information
on the company, includes forward-looking statements within the
meaning of federal securities law. These statements include terms
such as "should," "may," "believe" and "estimate," or assumptions,
estimates or forecasts about future hotel and company performance
and results, and the company's future need for capital. Such
statements should not be relied on because they involve risks that
could cause actual results to differ materially from the company's
expectations when such statements are made. Some of these risks are
set forth in reports filed from time to time with the SEC and
include, without limitation, (i) the company engages in a number of
related party transactions that create conflicts of interest, (ii)
the operational risks of the hotel business (including decreasing
hotel revenues and increasing hotel expenses), (iii) risks that
war, terrorism or similar activities, widespread health alerts,
disruption in oil imports or higher oil prices, or changes in
domestic or international political environments negatively affect
the travel industry and the company, (iv) risk of declines in the
performance and prospects of businesses and industries (e.g.,
technology, automotive, aerospace, pharmaceuticals) that are
important hotel demand generators in the company's key markets
(e.g. the Silicon Valley, CA, Northern NJ, Washington, DC, etc.),
(v) risk that poor, declining and/or uncertain international,
national, regional and/or local economic conditions will, among
other things, negatively affect demand for the company's hotel
rooms and the availability and terms of financing, (vi) risk that
the company's ability to maintain its properties in competitive
condition becomes prohibitively expensive, (vii) risk that pricing
in the hotel acquisition market becomes prohibitively expensive or
non- financeable and that potential acquisitions or developments do
not perform in accordance with expectations, (viii) risk that the
company may invest in hotels of a size or nature (e.g., upscale
full service or resort) different than those it has focused on
historically (e.g., upscale extended-stay, and mid-scale limited
service); (ix) risks that the company may be uninsured or
underinsured against property, casualty or other risks that may
negatively affect its properties, or business, including but not
limited to earthquakes or hurricanes; (x) risks related to an
increasing focus on development, including permitting risks,
increasing the proportion of company assets not producing revenue
at a given time and risks that projects cost more, take longer to
complete or do not perform as anticipated; (xi) changes in travel
patterns or the prevailing means of commerce (i.e., e-commerce) may
reduce demand for hotels in general or the company's hotels in
particular, (xii) the complex tax rules that the company must
satisfy to qualify as a REIT and the potentially severe
consequences of failing to satisfy such requirements, and (xiii)
governmental regulation that may increase the company's cost of
doing business or otherwise negatively effect its business or its
attractiveness as an investment and create risk of liability for
non-compliance (e.g., changes in laws affecting wages, taxes or
dividends, compliance with building codes, compliance with the
Americans with Disabilities Act, workers compensation law changes,
the Sarbanes-Oxley law, etc.). The company undertakes no obligation
to update any forward-looking statement to reflect actual results,
changes in the company's expectation, or for any other reason.
Contact: Dennis Craven (Company) Mark Murphy (Company) Chief
Financial Officer Acquisitions/Dispositions (561) 227-1302 (561)
227-1336 Jerry Daly or Carol McCune Daly Gray (Media) (703)
435-6293 DATASOURCE: Innkeepers USA Trust CONTACT: Dennis Craven,
Chief Financial Officer, +1-561-227-1302, or Mark Murphy,
Acquisitions and Dispositions, +1-561-227-1336, both of Innkeepers
USA Trust; or Media, Jerry Daly or Carol McCune, of Daly Gray,
+1-703-435-6293 Web site: http://www.innkeepersusa.com/
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