Innkeepers Sues Cerberus, Chatham for Breach of Commitment

Innkeepers USA Trust, an operator of Residence Inns, Marriott hotels and Hampton Inns, sued Cerberus Capital Management LP and Chatham Lodging Trust, saying its agreement to sell 64 hotels to Cerberus and Chatham can’t be called off due to market conditions or a change in its business.

The operator of 71 hotels, expected to exit bankruptcy in July, will go back to court to resolve the dispute. The lawsuit, filed in Manhattan bankruptcy court today, says there has been no change in Innkeepers business since a binding agreement was signed May 16.