PALM BEACH, Fla., June 2, 2003�Innkeepers USA Trust (NYSE: KPA), a hotel real estate investment trust (REIT) and a leading owner of upscale, extended-stay hotel properties throughout the U.S., today announced it has acquired the 203-room Quality Inn Beach Block Hotel in Atlantic City, N.J. for $8.6 million. The 16-story building is within one block of Atlantic City�s Boardwalk and beaches and is a short walking distance to the Trump�s Taj Mahal, Resorts International and Bally�s casinos and the Atlantic City Convention Center.  The hotel will undergo an extensive renovation and repositioning program and will be converted to the Courtyard by Marriott brand.

The Quality Inn Beach Block 119 N South Carolina Ave Atlantic City, New Jersey

The hotel will close in late October following the peak summer season and undergo an approximate $8.4 million renovation, with a target opening as the Atlantic City Courtyard by Marriott in late 2004. 

�We continue to seek growth opportunities both through acquisitions and selective new construction, such as our recently opened Residence Inn by Marriott in Saddle River, N.J.,� said David Bulger, chief financial officer, treasurer and executive vice president.  �Innkeepers is low-levered and has the financial strength and flexibility to acquire attractively priced properties.�

Innkeepers USA Trust is a hotel real estate investment trust (REIT) and a leading owner of upscale, extended-stay hotel properties throughout the U.S.  The company owns 68 hotels with a total of 8,399 suites or rooms in 23 states and focuses on acquiring and/or developing Residence Inns by Marriott and other upscale extended-stay hotels and the rebranding and repositioning of other hotel properties. 

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