Apollo Investment to Buy Innkeepers USA in $1.5 Billion Deal

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.

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