Innkeepers USA Trust Provides Business Update

PALM BEACH, FL – Innkeepers USA Trust (OTC: INKPP) announced that it did not make certain scheduled monthly interest payments on certain of its debt obligations and may not make future payments on certain of its debt and franchisor obligations.

As a result of the challenging economic conditions facing the hotel industry, Innkeepers’ board of trustees has determined it is in the best interest of Innkeepers’ stakeholders to take measures to preserve the company’s value, protect the company’s relationships with its franchisor partners, customers, vendors and employees and to maintain sufficient financial resources to continue normal daily operations.

 Accordingly, Innkeepers also announced that it had retained the services of financial and legal advisors to assist the company in an evaluation of financial alternatives, including a potential restructuring of the company’s balance sheet.

“Innkeepers has a long history as a leader in the branded extended-stay hotel segment,” commented Marc Beilinson, chief restructuring officer of Innkeepers. “It is our goal to preserve the company’s reputation as a leader in the industry and continue to serve our guests at each of our 73 hotels.”

Beilinson said that all hotels owned by Innkeepers are open and operating in the ordinary course of business and that all hotel and corporate employees will continue to be paid and receive benefits as usual.

The company will have no further comment at this time about this matter beyond what is contained in this press release.

Contact: Dennis Craven, CFO;  Mark Murphy, General Counsel; Innkeepers USA Trust,  Telephone: (561) 227-1302 Telephone: (561) 227-1336

Innkeepers USA Trust Provides Business Update

PALM BEACH, FL– Innkeepers USA Trust (OTC: INKPP) announced that in its continuing effort to enhance profitability, it is renegotiating its nonrecourse debt on a limited number of hotels.

In this regard, the company discontinued debt service on its Hilton hotel (top left photo)  in Ontario, Calif. and is in the process of seeking loan amendments that would share the hotel’s cash flow and adjust the hotel’s loan-to-value ratio.

 During this process, the company expects it will stipulate to the appointment of a receiver for the Ontario Hilton. In the event the parties do not agree on the terms of any amendments, the company may transfer ownership of the hotel to the lender in satisfaction of its obligation to the lender.

Innkeepers USA Trust is a real-estate investment trust (REIT) and a leading owner of upscale and extended-stay hotel properties throughout the United States. The company currently owns interests in 73 hotels with approximately 10,000 rooms in 19 states and the District of Columbia.

Contact:  Dennis Craven, CFO, Innkeepers USA Trust, Telephone: (561) 227-1302

Innkeepers USA Trust Suspends Payment of 4th Quarter 2009 Dividen on 8% Series C Cumulative Redeemable Preferred Shares

PALM BEACH, FL– Innkeepers USA Trust (OTC: INKPP) announced that it has suspended payment of its 2009 fourth quarter dividend on its 8% Series C Cumulative Redeemable Preferred Shares.

Innkeepers’ board of trustees will continue to review future quarterly dividends on the 8% Series C Cumulative Redeemable Preferred Shares based on financial and economic conditions and other appropriate factors.

A description of the 8% Series C Cumulative Redeemable Preferred Shares, is available in the Amended and Restated Declaration of Trust of Innkeepers USA Trust and the Articles Supplementary to the Declaration of Trust. Certain information regarding the 8% Series C Cumulative Redeemable Preferred Shares may be found on the company’s website at www.innkeepersusa.com.

Innkeepers USA Trust is a real estate investment trust (REIT) and a leading owner of upscale and extended-stay hotel properties throughout the United States. The company currently owns interests in 73 hotels with approximately 10,000 rooms in 19 states and the District of Columbia.

Contact: Dennis Craven, CFO, Innkeepers USA Trust, Telephone: (561) 227-1302

Innkeepers USA Trust suspends Payment of Third Quarter 2009 Dividend

PALM BEACH, FL, Sept. 1, 2009 – Innkeepers USA Trust (OTC: INKPP) today announced that it has suspended payment of its 2009 third quarter dividend on its 8% Series C Cumulative Redeemable Preferred Shares.
Innkeepers’ board of trustees will continue to review future quarterly dividends on the 8% Series C Cumulative Redeemable Preferred Shares based on financial and economic conditions and other appropriate factors.

A description of the 8% Series C Cumulative Redeemable Preferred Shares, is available in the Amended and Restated Declaration of Trust of Innkeepers USA Trust and the Articles Supplementary to the Declaration of Trust. Certain information regarding the 8% Series C Cumulative Redeemable Preferred Shares may be found on the company’s website at http://www.innkeepersusa.com/.

Innkeepers USA Trust is a real estate investment trust (REIT) and a leading owner of upscale and extended-stay hotel properties throughout the United States. The company currently owns interests in 74 hotels with approximately 10,100 rooms in 20 states and the District of Columbia.

Contact: Dennis Craven, CFOInnkeepers USA Trust, (561) 227-1302

Innkeepers USA Trust Suspends Payment of First Quarter Dividend on 8% Bond Series

PALM BEACH, FL – Innkeepers USA Trust (OTC: INKPP) has suspended payment of its 2009 first quarter dividend on its 8% Series C Cumulative Redeemable Preferred Shares.

Decisions regarding future quarterly dividends on the 8% Series C Cumulative Redeemable Preferred Shares will be made by Innkeepers’ board of trustees based on financial and economic conditions and other factors that the board deems appropriate.

A description of the 8% Series C Cumulative Redeemable Preferred Shares, is available in the Amended and Restated Declaration of Trust of Innkeepers USA Trust and the Articles Supplementary to the Declaration of Trust.

Certain information regarding the 8% Series C Cumulative Redeemable Preferred Shares may be found on the company’s website at http://www.innkeepersusa.com/.

Innkeepers USA Trust is a real estate investment trust (REIT) and a leading owner of upscale and extended-stay hotel properties throughout the United States. The company currently owns interests in 74 hotels with approximately 10,100 rooms in 20 states and the District of Columbia.
Contacts:

Patrick Daly,Daly Gray Public Relations, Tel (703) 435-6293. Fax (703) 435-6297. patrick@dalygray.com

Dennis Craven, Innkeepers USA Trust, (561) 227-1302.