Chatham, Cerberus Terminate Innkeepers Agreement

Chatham Lodging Trust

on Friday terminated their commitment and obligation to acquire interests in 64 hotels owned by Innkeepers USA Trust and its affiliates ("Innkeepers") in accordance with the terms and conditions of their May 16th agreement. Chatham and Cerberus jointly determined to terminate the agreement in accordance with the terms of the agreement as a result of the occurrence of a condition, change or development that could reasonably be expected to have a material adverse effect on Innkeepers' business, assets, liabilities (actual or contingent), operations, condition (financial or otherwise) or prospects.