Hotel investment company Innkeepers USA Trust, owned by an affiliate of Apollo Investment Corporation, has filed for bankruptcy protection after room revenue fell and debt payments rose.
The company has stakes in 72 US hotels. It owes more than $1bn according to Chapter 11 documents filed in the Manhattan bankruptcy court. Marriott, the franchisor of 44 Inkeepers hotels, has agreed to wave claims to the properties in exchange for the chain improving 23 of its branded hotels. Innkeepers will use a $17m loan from Lehman to improve those properties. It also has a $50.7m loan from Five Mile Capital Partners, news wires reported.