Barclays Capital analysts have given a breakdown of Innkeeper’s USA Trust’s CMBS exposure in a report released today.

They reported that Innkeeper’s has $1.2 billion in CMBS exposure, spread out across seven different CMBS transactions. The highest exposure by dollar balance is in LBUBS 2007-C6 and LBUBS 2007-C7. 

Innkeeper’s USA Trust yesterday filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Manhattan.

The hotel investment company, which was bought by Apollo Investment about three years ago, cited an inability to service its debt as its primary reason for filing.

The bankruptcy filing, according to Barclays analysts, makes it seem that Inkeeper's is giving a 33% discount for the $825 pari passu structure securitized in LBUBS 2007-C6 and LBUBS 2007-C7, which has a total face amount that does not exceed $550 million.

There might be around a 27% discount for seven loans backed by the same of number of properties in other CMBS conduit deals, according to the filing. This number excludes Hilton Suites Anaheim mezzanine and amounts to about $150 million in face value for $206.4 million in securitized mortgages by current balance. 

The filing also implied the cancellation of the mezzanine debt and said that Lehman Brothers, as the lender, is entitled to receive 100% of the issued and outstanding shares of common stock from Innkeepers in full and final satisfaction of its secured mortgage claims, Barclays analysts reported.

Inkeeper's owes more than $1 billion, according to Chapter 11 documents. A prearranged plan supported by Marriott International will let Innkeeper’s retain its properties while it reorganizes. Marriott, the franchisor of 44 out of the 73 Inkeeper's hotels, will forbear on any claims to the properties and will maintain the branding in exchange for Innkeeper's improving 23 of the Marriott-branded hotels.

Innkeeper's is a REIT and a leading owner of upscale and extended-stay hotel properties throughout the U.S. Its 73 hotels have around 10,000 rooms in 19 states and the District of Columbia.

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