Innkeepers USA Unable To Make Certain Debt Payments

PALM BEACH, FL—Innkeepers USA Trust announced that it failed to make certain scheduled monthly interest payments on certain of its debt obligations and may not make future payments in certain of its debt and franchisor obligations.

Due to challenging economic conditions, Innkeepers board of trustees has determined it is in the best interest of Innkeepers stakeholders to take measures to preserve the companys value, protect the companys relationships with its franchise partners, customers, vendors and employees and to maintain sufficient financial resources to continue normal daily operations.

Innkeepers has also retained the services of financial and legal advisors to assist the company in an evaluation of financial alternatives, including a potential restructuring of the companys balance sheet.