Private equity firm, Cerberus Capital Management, and Chatham Lodging Trust have won an auction to acquire hotels owned by bankrupt, Innkeepers USA Trust, TheWall Street Journal reports. The duo will pay $1.1 billion for 64 of the chain’s hotels, out of which 45 are linked to a mortgage serviced by Midland Loan Services, while19 hotels have a mortgage held by a Lehman Brothers’ subsidiary.
The Cerberus-Chatham offer out-bid a $970.7 million offer made by an affiliate of Lehman and Five Mile Capital Partners. Chatham also won the bidding for five additional properties with a bid of over $190 million. It out-bid Hersha Hospitality Trust, a real-estate investment trust.
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