Innkeepers USA Trust Declares Quarterly Dividends

Business Wire, Sept 16, 1998

PALM BEACH, Fla.--(BUSINESS WIRE)--Sept. 16, 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 October 27, 1998 to shareholders of record on September 25, 1998. Based on Tuesday's closing price, the common share annualized dividend yield is 11.2 percent based on the current annualized dividend of $1.12 per share.

"Our balance sheet remains strong, with total debt outstanding of approximately $175 million and an extremely low 24 percent ratio of debt to total investment in hotels," said Jeffrey H. Fisher, chairman and chief executive officer. "Our strong balance sheet gives us excellent flexibility and the ability to respond to market conditions and opportunities as they arise."

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 64 hotels with a total of 7,684 suites or rooms in 24 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 of 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.

CONTACT: Innkeepers USA Trust

David Bulger, Chief Financial Officer

561/835-1800 x302

or

Financial Relations Board (Analyst Info)

Claire Koeneman, 312/640-6784

or

Daly Gray (Media)

Jerry Daly or Carol McCune, 609/383-1414