GO
Loading...

Apollo Investment to Buy Innkeepers USA in $1.5 Billion Deal

Reuters
Monday, 16 Apr 2007 | 11:58 AM ET

Innkeepers USA Trust, a hotel real estate investment trust, said on Monday it has agreed to be acquired by an affiliate of Apollo Investmentfor $17.75 a share.

The price represents a premium of 8% over Innkeepers' closing price of $16.45 on Friday.

Including assumed debt, the deal is worth $1.5 billion, Innkeepers said.

"Innkeepers provides stable, long-term cash flow making it a valuable investment for AIC's shareholders," James Zelter, chief operating officer of Apollo, said in a statement.

Innkeepers, which owns 74 hotels, said it will pay its first-quarter common share dividend on April 24 and has agreed to suspend any further common share dividends.

The deal is expected to be completed in the second quarter.

  Price   Change %Change
AINV
---

Featured

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video