Innkeepers USA Trust Announces 1998 Dividend Allocation for Income Tax Purposes

Business Wire, Jan 22, 1999

PALM BEACH, Fla.--(BUSINESS WIRE)--Jan. 22, 1999--Innkeepers USA Trust (NYSE: KPA), a hotel real estate investment trust (REIT), today announced that management has determined based upon available information the characterization of dividends declared in 1998 for income tax reporting purposes.

The dividends declared during 1998 are delineated below with the appropriate percentage representing ordinary income, return of capital and capital gain. -0-

 Dividend    Date of     Date of   Record    Ordinary  Return of Capital
 Per Share Declaration   Payment    Date     Income %  Capital %  Gain %
 --------- -----------   -------    ----     --------  ---------  ------

 $0.28      3/4/98      4/21/98    3/27/98     59.1%     40.9%      --

 $0.28      6/9/98      7/28/98    6/26/98    100.0%      --        --

 $0.28      9/16/98     10/27/98   9/25/98    100.0%      --        --

 $0.28     12/14/98     1/26/99   12/24/98     72.3%     24.6%     3.1%

On an annual basis, $1.06, or 94.3 percent, of the total declared dividends of $1.12 during 1998 is ordinary income, $0.05, or 4.9 percent, is a return of capital, and $0.01, or 0.8 percent, is a capital gain (unrecaptured section 1250 gain) in 1998.

Florida-based 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 65 hotels with a total of 7,935 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 of other hotel properties.