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Innkeepers-Cerberus deal finally sealed for $1 billion

After a lawsuit and extensive negotiations, Innkeepers USA Trust has agreed to sell 64 hotels to Cerberus Capital Management and Chatham Lodging Trust for US$1 billion.

The sale price is about US$120 million less than what the parties originally agreed on in June. Cerberus and Chatham then terminated the deal in August, citing a “material adverse event” clause. Pre-trial documentation revealed that Cerberus cited the weakening U.S. economy as the determinant of the decision to invoke the clause. In response, Innkeepers sued, alleging the deal was terminated as a negotiating tactic for a lower price on the properties.

The settlement will keep the case out of court. The hotels are located in the U.S.

This Hampton Inn in Louisville, Kentucky was one of the properties involved in the purchase.
This Hampton Inn in Louisville, Kentucky was one of the properties involved in the purchase.
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