PALM BEACH, FL— Innkeepers USA Trust announced it has settled all litigation issues with Frederic Shaw, its former COO. Innkeepers USA Trust is a hotel real estate investment trust (REIT) and an owner of upscale, extended-stay hotels throughout the United States. The company owns 67 hotels with a total of 8,196 suites or rooms in 23 states. It was also announced that Innkeepers Hospitality, the REITs primary lessee and management company, has resolved all outstanding litigation issues with Shaw. Shaw was COO of Innkeepers USA Trust from 1997 through March 2000, and was a founding shareholder and president of Innkeepers Hospitality from its inception in 1994 through March 2000. Jeffrey Fisher, president of Innkeepers Hospitality and CEO/ president of Innkeepers USA Trust, said the company is “pleased that all issues related to Mr. Shaws departure from Innkeepers USA Trust and Innkeepers Hospitality have been amicably resolved.” According to the settlement agreements with Innkeepers USA Trust and Innkeepers Hospitality, Shaw will receive all payments due under his respective employment contracts, including the value of restricted shares, and reimbursement of a portion of incurred litigation costs. Fisher also will buy Shaws equity interest in Innkeepers Hospitality. Innkeepers USA Trust said its payments due under the settlement are approximately $3 million.
