Of that total, an estimated $5 million will go to renovate the asset and rebrand it as a Courtyard by Marriott. Company officials say they will shut the hostelry down to complete the makeover. The identity of the seller was not disclosed, but public documents on file with the Borough of Montvale list the owner as Esplanade Montvale Management Corp.

"The property is ideally situated on the New Jersey-New York border, just 20 miles from New York City and within 30 minutes of all three metropolitan airports," says Jeffrey H. Fisher, Innkeepers USA's president and CEO. "The area continues to grow at a very healthy rate and is home to more than 300 businesses, including a large number of high-profile national corporate headquarters, which represent a steady source of business travel demand."

The property is also the only hotel within the borders of this Bergen County community. According to Fisher, the acquisition is being funded by borrowing on the company's unsecured line of credit. When it reopens, it will be managed by Innkeepers Hospitality Management Inc., which Fisher owns.

The three-story hostelry, which features fitness and business centers, a restaurant and lounge and 10,000 sf of function space, will get "a complete upgrade of all the current soft and hard goods," according to Fisher. The room count and meeting space are expected to stay the same after the renovation, although the company is "reviewing alternative uses of the banquet space, including securing a restaurant tenant."

The acquisition is Innkeepers USA's third since December, totaling about 340 rooms, with the other two located in the Baltimore-Washington corridor. The REIT now owns 71 properties totaling almost 9,000 rooms in 21 states and DC, including five others in the Garden State.

"The company continues to have an aggressive appetite for hotel acquisitions," says Peter M. Willis, vice president of business development. "That includes upscale extended-stay and premium limited service brands, the core of our portfolio, as well as full-service properties, turn-around opportunities and hotels that are affiliated with or have the potential to be converted to the industry's top brands."