NEW YORK CITY — A joint venture between Cerberus Series Four Holdings and Chatham Lodging Trust (NYSC: CLDT) has reached an agreement with Innkeepers USA Trust and its affiliates to acquire 64 Innkeepers hotels for $1.02 billion.
This is the second agreement the companies have reached. The first agreement was reached in May, and then terminated in August due to “the occurrence of a condition, change or development that could reasonably be expected to have a material adverse effect on Innkeepers’ business, assets, liabilities (actual or contingent), operations, condition (financial or otherwise) or prospects,” according to a press release sent from Chatham on August 19.
The $1.02 billion sale price offers a $75 million increase in value to creditors compared to the baseline bid that was set for the May 2011 auction. The new agreement will still allow the company to exit from Chapter 11 as planned.
“Chatham and Cerberus are excited about owning this valuable portfolio and look forward to creating significant value for their shareholders and investors,” said Jeff Fisher, CEO of Chatham, in a statement.
Chatham’s share price closed at $10.90, down from $18.85 a year ago.
— Savannah Duncan