Report: Innkeepers eyes possible sale to Five Mile

AP News
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Posted: Sep 16, 2011 6:02 PM
Report: Innkeepers eyes possible sale to Five Mile

The Wall Street Journal is reporting that Innkeepers USA is in talks with Five Mile Capital Partners LCC over a possible deal to buy the hotel operator for more than $1 billion.

The report published Friday cites people familiar with the matter the paper did not name. The people cautioned that the talks were fluid and could fall apart.

The discussions come a few weeks after Chatham Lodging Trust and Cerberus Capital Management LP decided to pull out of a $1.13 billion deal to buy 64 hotels owned by Innkeepers, citing an undisclosed condition, change or development that might have a material adverse impact on the hotel operator.

Innkeepers did not immediately comment on the report.

A call to Five Mile Capital was not immediately returned.