Innkeepers USA Trust Declares Quarterly Dividends

Business Wire, Dec 15, 1998

PALM BEACH, Fla.--(BUSINESS WIRE)--Dec. 14, 1998--Innkeepers USA Trust (NYSE:KPA), a hotel real estate investment trust (REIT), today announced that its Board of Trustees has declared regular quarterly cash dividends of $0.28 per common share and $0.53906 per cumulative convertible preferred share.

The common and cumulative convertible preferred dividends are payable January 26, 1999 to shareholders of record on December 24, 1998. Based on Friday's closing price, the common share annualized dividend yield is 10.4 percent based on the current annualized dividend of $1.12 per share.

"This is the 17th consecutive dividend that Innkeepers has paid since our IPO in September 1994," said Jeffrey H. Fisher, chairman and chief executive officer. "Over that period, we have increased the dividend five times, or a total of 45 percent. We remain very comfortable with our dividend for 1999. The fundamentals of the upscale, extended stay segment remain positive and our properties are well located in markets with high barriers to entry. Our balance sheet is strong, our debt-to-investment in hotels at cost is a low-levered 25 percent, and we have $190 million available under our line of credit."

Innkeepers USA Trust is a hotel real estate investment trust and the nation's leading REIT owner and acquirer of upscale, extended-stay hotel properties throughout the U.S. The company owns 63 hotels with a total of 7,639 suites or rooms in 23 states and focuses on acquiring Residence Inns and other upscale extended-stay hotels in markets with high barriers to entry and the rebranding and repositioning other hotel properties.

Certain matters within this press release are discussed using forward-looking language as specified in the 1995 Private Securities Litigation Reform Law, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. From time to time, these risks are discussed in the Company's filings with the Securities and Exchange Commission.