Cerberus, Chatham Kill $1.1B Innkeepers' Hotel Deal

Law360, New York (August 22, 2011, 2:13 PM EDT) -- Investment firms Chatham Lodging Trust and Cerberus Capital Management LP have terminated a $1.1 billion agreement to buy 64 hotels from Innkeepers USA Inc., Chatham announced Monday, citing developments that could potentially hurt the bankrupt hotel chain.

The real-estate investment trust noted that the agreement, which was terminated Friday, allowed it and private investment firm Cerberus to back out in the event of a change that could have a material adverse effect on Innkeepers' business.

Innkeepers, which owns and operates hotels under brands such as Marriott,...
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