Innkeepers USA Completes Acquisition of Sheraton in Rockville, MD
PALM BEACH, FL, November 14, 2006. Innkeepers USA Trust (NYSE: KPA), a hotel real estate investment trust (REIT) and a leading owner of upscale properties throughout the United States, today announced that it has completed the acquisition of the 155-room Sheraton Rockville in Maryland from Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) for $23.3 million, or $150,000 per key, in a deal negotiated directly with Starwood. The acquisition was funded with borrowings under the company's unsecured line of credit, and the hotel will fly the Sheraton flag under a long-term franchise agreement.
Innkeepers Hospitality Management, which is owned by Jeffrey H. Fisher, chief executive officer of Innkeepers USA Trust, will manage the hotel under a long-term management agreement.
Situated 5.5 miles north of Washington, D.C.'s Capital Beltway, the five-story hotel is located in the master-planned, mixed-use development of King Farm, an award-winning community.
"As the only Starwood-branded hotel in the immediate market, the hotel will be well suited to meet the demands of the tenants of the more than 12 million square feet of office and research space within a three-mile radius of the hotel," said Jeffrey H. Fisher, Innkeepers chief executive officer and president. "In addition, the hotel should benefit from the continued expansion of Irvington Center office park, also part of King Farm. We also believe this hotel offers an added competitive advantage in that half the current supply is more than 10 years old. We will continue to execute our strategy of building long-term shareholder value with our acquisitions, conversions and developments as we transform the quality of our portfolio into newer, more profitable assets."
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
