Innkeepers USA Trust Postpones Release of First Quarter Results and Conference Call
11 May 2005 - 2:07AM
Business Wire
Innkeepers USA Trust (NYSE: KPA), a hotel real estate investment
trust (REIT) and a leading owner of upscale extended-stay hotel
properties throughout the United States, today announced that it is
postponing release of its first quarter financial results and the
conference call to discuss first quarter results previously
scheduled for today, Tuesday, May 10, 2005. The company recently
became aware of a potential loss from misappropriation of receipts
on hotel accounts receivable by a hotel general manager at one of
the company's 68 hotels. An investigation is continuing with
respect to this matter; however, the company believes that it has
quantified the probable maximum potential loss and believes that
the potential misappropriation is limited to one hotel. Innkeepers
expects to record an approximately $430,000 charge against first
quarter 2005 earnings relating to the potential misappropriation of
receipts. The company and its auditors are confirming the company's
proposed accounting treatment and are reviewing the company's
internal controls as they relate to this issue. The company intends
to pursue a recovery of any loss relating to this issue under its
existing insurance policies, although there can be no assurance
that such recovery will be obtained. Innkeepers reaffirms its
previous earnings and RevPAR guidance provided in February 2005,
and said it currently expects to release first quarter 2005
earnings and reschedule the related conference call on or before
Monday, May 16, 2005. Innkeepers USA Trust owns 68 hotels with a
total of 8,521 suites or rooms in 20 states and Washington, D.C.,
and focuses on acquiring and/or developing upscale and upscale
extended-stay hotels with premium brands and the rebranding and
repositioning of other hotel properties. For more information about
Innkeepers USA Trust, visit the company's web site at
www.innkeepersusa.com. Cautionary statements set forth in reports
filed by the company from time to time with the SEC discuss
important factors impacting, or that could impact, the company and
its results or forecasted results. These factors include, without
limitation, (i) direct exposure to the operational risks of the
hotel business (including decreasing hotel revenues and increasing
hotel expenses) under the company's taxable REIT subsidiary
structure, (ii) risk that war, terrorism or similar activities,
widespread health alerts, disruption in oil imports or higher oil
prices or changes in domestic or international political
environments negatively affect the travel industry and the company,
(iii) risk that the performance and prospects of businesses and
industries that are important hotel demand generators in the
company's key markets decline (e.g., technology, automotive,
aerospace), (iv) risk that international, national, regional and/or
local economic conditions will, among other things, negatively
affect demand for the company's hotel rooms and the availability
and terms of financing, (v) risk that the company's ability to
maintain its properties in competitive condition becomes
prohibitively expensive, (vi) risk that pricing in the hotel
acquisition market becomes prohibitively expensive or
non-financeable and that potential acquisitions or developments do
not perform in accordance with expectations, (vii) changes in
travel patterns or the prevailing means of commerce (i.e.,
e-commerce), (viii) the complex tax rules that the company must
satisfy to qualify as a REIT, and (ix) governmental regulation that
may increase the company's cost of doing business or otherwise
negatively effect its business or its attractiveness as an
investment and create risk of liability for non-compliance (e.g.,
changes in laws affecting taxes or dividends, compliance with the
Americans with Disabilities Act, workers compensation law changes,
the Sarbanes-Oxley law, etc.).
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