Lehman’s hotel REIT files for bankruptcy

A major hotel real estate investment trust and subsidiary of Lehman
Brothers Holdings has filed for bankruptcy protection in New York,
after buckling under $1.42 billion in debt, according to the Wall
Street Journal. Innkeepers USA Trust currently owns more than 70 hotels
across 19 states, many of which ran under widely known brand names like
Marriott, Hyatt and Hilton. The Palm Beach, Fla.-based REIT aims to
eliminate around $700 million worth of debt through the bankruptcy,
experts say. The news comes on the heels of a rocky relationship with
one of its brands, Marriott, which threatened to remove its name from
23 hotels in the REIT due to a perceived lack of upkeep. Innkeepers and
Marriott ultimately struck a deal on June 25. [WSJ]