Company officials did indicate that the sale price represents acap rate of approximately 4.5% based on the property's trailing 12months net operating income, and that the proceeds will be used topay down part of the company's unsecured line of credit.

"After exploring several different alternatives for thisindependent hotel, we determined that it was in our best intereststo divest the property," says Jeffrey H. Fisher, president and CEOof Innkeepers. "It was an excellent investment, generating a 14%annual return since we acquired the property 10 years ago.

"As we had previously announced during our Q4 conference calland earnings release, we will seek to divest certain hotels fromour portfolio in 2007," says Fisher, whose company currently owns74 hotels with 9,808 rooms and a 49% interest in a 355-room hotel."It is a continuation of our long-term strategy to transform theoverall quality of our portfolio by redeploying capital into newer,more profitable assets with long-term growth potential."