Innkeepers-Cerberus agreement is closed for $1 billion

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Published on 22/10/11 - Updated on 17/03/22

After months of conflict and negociations, Innkeepers USA Trust has agreed to sell 64 U.S. hotels to Cerberus Capital Management and Chatham Lodging Trust for $1 billion.

The sale price remains about $120 million less than the original selling price from June.The settlement will keep the case out of court.Cerberus and Chatham then terminated the deal in August, stating a "material adverse event" clause as the reason.Cerberus blamed the weakening U.S. economy as the decisive factor to invoke the clause. In retaliation, Innkeepers sued, saying the deal was terminated as a negotiating tactic to obtain a lower price on the properties.

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