Apollo Investment To Buy Innkeepers USA Trust For $1.5 Billion

U.S. hotel REIT Innkeepers USA Trust agreed yesterday to a $800 million all-cash buyout offer from Apollo Investment Corp., valuing each of its shares at $17.75. Innkeepers, which is the owner of the Residence Inn, Hampton Inn and Summerfield Suites chains and owns 74 hotels nationwide, saw its shares jump more than 9% on the news from a closing price of $16.45 Friday to a close of $17.96 yesterday. Including debt, the deal is valued at $1.5 billion. Innkeepers will pay its first quarter dividend on April 24 after which it will suspend further dividend payments.

Sources: Press Release, Wall Street Journal, Bloomberg, BizJournal, TheStreet.com
Commentary: Investing in Real Estate: REITs and Your Home • LaSalle Hotel Properties Raises Dividend by 21%
Stocks/ETFs to watch: Innkeepers USA Trust (KPA), Apollo Investment Corp. (AINV). Competitors: FelCor Lodging Trust (FCH), Hospitality Properties Trust (HPT). ETFs: DJ Wilshire REIT (RWR), Vanguard REIT ETF (VNQ)

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