A joint venture between Cerberus Capital Management LP and Chatham Lodging Trust has won a bankruptcy auction for 64 hotels owned by Innkeepers USA Trust.
The winning bid, which topped bids from Lehman Brothers Holdings Inc. and Five Mile Capital Partners, is for US$1.125 billion, including assumed debt. Chatham will fund its investment in the joint venture with available cash and borrowings under its secured revolving credit facility.
“We are excited to acquire these premium-branded, select-service hotels early in the recovery of the lodging industry,” says Chatham CEO Jeffrey Fisher. “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.”
In a separate transaction yesterday, Chatham also acquired five more properties from Innkeepers for an additional US$195 million. That deal—for three Residence Inns, a DoubleTree and a Homewood Suites, will be funded through the assumption of debt and from borrowings under Chatham’s secured revolving credit facility.
The winning bid, which topped bids from Lehman Brothers Holdings Inc. and Five Mile Capital Partners, is for US$1.125 billion, including assumed debt. Chatham will fund its investment in the joint venture with available cash and borrowings under its secured revolving credit facility.
“We are excited to acquire these premium-branded, select-service hotels early in the recovery of the lodging industry,” says Chatham CEO Jeffrey Fisher. “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.”
In a separate transaction yesterday, Chatham also acquired five more properties from Innkeepers for an additional US$195 million. That deal—for three Residence Inns, a DoubleTree and a Homewood Suites, will be funded through the assumption of debt and from borrowings under Chatham’s secured revolving credit facility.