Innkeepers USA To Buy Sheraton Hotel

Biz Journals:

Innkeepers USA Trust said it will buy the 155-room Sheraton Rockville in Maryland from Starwood Hotels & Resorts Worldwide for $23.3 million.The Palm Beach-based hotel real estate investment trust (NYSE: KPA) on Monday entered into an agreement for the hotel, which is still under construction and is expected to open in October. The deal works out to $150,000 per key and is expected to close by the fourth quarter. The acquisition will be funded with borrowings under Innkeepers’ unsecured line of credit, and the hotel will fly the Sheraton flag under a long-term franchise agreement.

This is the first time Innkeepers has acquired a hotel from Starwood.