Palm Beach, FL-based Innkeepers USA Trust is a REIT focused on upscale extended-stay hotel properties. Innkeepers Hospitality, also based in Palm Beach, is a hotel management company. The latter company has signed management contracts with the REIT to oversee operations of the 61 properties. Flint Creek Partners is a financial advisor and investment banker, focused on real estate companies.
"We've been working on this deal for three years," says chief financial officer Innkeepers USA Trust David Bulger. The REIT expects to recoup its investment from wholly-owned taxable REIT subsidiaries it has set up as part of the deal in about five years, he adds. "Our return on investment should approach 20% to 30% on an annual basis," he says.
For president and chief executive officer Jeffrey H. Fisher, the deal was not made any easier by his holding controlling interest in Innkeepers Hospitality. "It was difficult to sit on both sides of the fence," Fisher says.
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