KPA Innkeepers Usa Tr

Innkeepers USA Trust (NYSE: KPA), 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 acquired the newly renovated 224-room Westin Governor Morris hotel in Morristown, N.J. for approximately $35.1 million. The acquisition will be funded by borrowing on the company's unsecured line of credit. Innkeepers Hospitality Management, Inc. will manage the property. Jeffrey H. Fisher, chief executive officer and president of Innkeepers USA Trust, owns Innkeepers Hospitality Management. "This acquisition is an example of our prudent strategy to grow opportunistically and diversify," said Jeffrey H. Fisher, chief executive officer and president. Innkeepers' acquisition program targets high-quality assets in high-barrier, high-demand markets at attractive prices. "The Westin Morristown is an upper upscale, full-service property -- our first in this segment -- in a high-barrier market with strong corporate demand and little supply of comparable quality. The hotel is in top physical condition following a recently completed, multi-million dollar renovation that positions this property to assume a leadership role among its competitive set. "In addition to the property's locational advantages, including its proximity to New York, we acquired this like-new asset at a price significantly below replacement cost," Fisher added. "While our primary acquisition target remains upscale extended stay, the economics of this deal were compelling, especially in today's competitive real estate market. We will continue to look for opportunistic acquisitions in alternative segments and brands in high-barrier locations, particularly hotels that are underperforming or ripe for repositioning." The refurbishment created an additional 10,000 square feet of meeting, breakout and event space (for a total of 25,000 square feet), an elegant new signature restaurant and martini lounge, a new espresso bar and an expansive fitness center aside from the complete upgrading of the existing spaces, structure and mechanicals. The hotel also features all of Westin's branded signature amenities and services, such as the Westin Heavenly Bed, Westin Heavenly Bath, and a WestinWORKOUT Powered by Reebok fitness center, in addition to the enhanced amenities exclusive to the Westin Governor Morris. Peter Willis, Innkeeper's vice president of business development, noted that the company continues to have an aggressive appetite for hotel acquisitions, including upscale extended stay and premium limited service brands, the core of the company's portfolio; selected full-service properties; and turn-around opportunities and hotels that are affiliated with, or have the potential to be converted to, the industry's top brands. Innkeepers USA Trust is a hotel real estate investment trust (REIT) and a leading owner of upscale extended-stay hotel properties throughout the United States. The company owns 68 hotels with a total of 8,521 suites or rooms in 20 states and Washington, D.C., and focuses on acquiring and/or developing upscale and upscale extended-stay hotels with premium brands 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 SEC discuss important factors impacting, or that could impact, the company and its results or forecasted results. These factors include, without limitation, (i) direct exposure to the operational risks of the hotel business (including decreasing hotel revenues and increasing hotel expenses) under the company's new taxable REIT subsidiary structure, (ii) risk 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, (iii) risk that the performance and prospects of businesses and industries that are important hotel demand generators in the company's key markets decline (e.g., technology, automotive, aerospace), (iv) risk that 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, (v) risk that the company's ability to maintain its properties in competitive condition becomes prohibitively expensive, (vi) 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, (vii) changes in travel patterns or the prevailing means of commerce (i.e., e-commerce), (viii) the complex tax rules that the company must satisfy to qualify as a REIT, and (ix) 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 taxes or dividends, compliance with the Americans with Disabilities Act, workers compensation law changes, the Sarbanes-Oxley law, etc.).