Cerberus Capital Management and Chatham Lodging Trust have won 64 hotels owned by Innkeepers USA Trust in a bankruptcy court auction.

The two companies will pay just over $1.1bn for the hotel chain’s assets, including assumption of debt.

Innkeepers filed for bankruptcy in July 2010, went into the auction having struck a deal with its creditor Five Mile Capital and Lehman Ali, a unit of Lehman Brothers Holdings.

Innkeepers, which owns and operates hotels under such brands as Hilton, Hyatt and Marriott, said when it filed for bankruptcy that its debt load had made it difficult to maintain and upgrade its properties.

In a separate deal, Chatham has also won a second auction of five hotels from Innkeepers for $195m.