Innkeepers USA Trust Amends Dividend Reinvestment and Share Purchase Plan

Business Wire, March 8, 1999

PALM BEACH, Fla.--(BUSINESS WIRE)--March 8, 1999--Innkeepers USA Trust (NYSE: KPA), a hotel real estate investment trust (REIT), today announced that the company has amended its dividend reinvestment and share purchase plan (DRIP), effective March 1, 1999.

Under the old DRIP plan, shareholders reinvesting dividends purchased company-issued shares at a 4 percent discount. No optional share purchases were discounted.

Under the amended DRIP plan, shareholders reinvesting dividends still will be entitled to a 4 percent discount if the company issues new shares rather than the shares being acquired in the open market. In addition, shareholders making optional share purchases in excess of $3,000 on any investment date may receive up to a 3 percent discount when company-issued shares are purchased.

At the next investment date, Innkeepers plans to purchase all dividend reinvestment shares and optional purchase shares in the open market, so no discounts will be available.

"With our current share price, purchasing shares in the open market for our dividend reinvestment and optional share purchase plans makes the most economic sense for our shareholders," said David Bulger, chief financial officer. "If our share price rebounds to levels that better reflect our long-term value, Innkeepers will be able to again issue new shares and offer our shareholders a 4 percent discount on purchases made with reinvested dividends and up to a 3 percent discount on optional cash purchases of more than $3,000."

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.

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.