A joint venture formed by Cerberus Capital Management and Chatham Lodging Trust has been 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 USD1.125 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," says 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 (pictured), CEO of Chatham, says: "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."
