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.