TASHJIAN & PADIAN Gerald Padian Bradley M.

Rank 729 Seventh Avenue New York, New York 10019 Tel.: (212) 319-9800 Fax: (212) 319-9883 and David M. Neff (admitted pro hac vice) PERKINS COIE LLP 131 S. Dearborn, Street, Suite 1700 Chicago, Illinois 60603-5559 Phone: (312) 324-8400 Fax: (312) 324-9400 Attorneys for C-III Asset Management LLC UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK In re: Innkeepers USA Trust, et al., Debtors. ) ) ) ) ) ) ) Chapter 11 Case No. 10-13800 Jointly Administered

RESPONSE AND JOINDER OF C-III ASSET MANAGEMENT, LLC WITH OBJECTION BY MIDLAND LOAN SERVICES, INC. TO THE MOTION OF AD HOC COMMITTEE OF PREFERRED SHAREHOLDERS FOR ORDER DIRECTING APPOINTMENT OF STATUTORY COMMITTEE OF PREFERRED SHAREHOLDERS PURSUANT TO BANKRUPTCY CODE SECTION 1102(a)(2) C-III Asset Management LLC ("C-III") hereby responds to the Motion of Ad Hoc Committee of Preferred Shareholders for Order Directing the Appointment of Statutory Committee of Preferred Shareholders [Docket No. 435] (the Motion) and joins in the objection (the Midland Objection) filed by Midland Loan Services, Inc. (Midland) thereto and states as follows::

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1.

C-III is special servicer for Wells Fargo Bank, N.A., trustee for the registered

holders of Credit Suisse First Boston Mortgage Securities Corp., Commercial Mortgage PassThrough Certificates, Series 2007-C1, which is the holder of loans to certain of the Debtors (the Ontario Debtors) in the original principal amount of approximately $35.0 million, secured by a deed of trust on certain real property operated as a Hilton Hotel located in Ontario, California, and related collateral. 2. In the Motion, the Ad Hoc Committee seeks appointment of a statutory committee

of preferred shareholders pursuant to 11 U.S.C. 1102(a)(2). C-III opposes the Motion and joins in the Midland Objection. In addition, C-III objects to the use of its cash collateral for the purpose of paying professional fees and other expenses of the proposed preferred shareholders committee. WHEREFORE, for the reasons set forth herein and in the Midland Objection, C-III respectfully requests that the Court deny the relief requested in the Motion and grant such other and further relief as is just and proper. Dated: September 23, 2010 /s/ David M. Neff TASHJIAN & PADIAN Gerald Padian (NY Bar # 2257178) Bradley M. Rank 729 Seventh Avenue New York, New York 10019 Telephone: (212) 319-9800 Facsimile: (212) 319-9883 Email: gpadian@tashpad.com brank@tashpad.com

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David M. Neff (admitted pro hac vice) PERKINS COIE LLP 131 S. Dearborn, Street, Suite 1700 Chicago, Illinois 60603-5559 Phone: (312) 324-8400 Fax: (312) 324-9400 dneff@perkinscoie.com Attorneys for C-III Asset Management LLC

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CERTIFICATE OF SERVICE David M. Neff, an attorney, hereby certifies that on September 23, 2010 he caused a copy of the foregoing RESPONSE AND JOINDER OF C-III ASSET MANAGEMENT LLC WITH OBJECTION BY MIDLAND LOAN SERVICES, INC. TO THE MOTION OF AD HOC COMMITTEE OF PREFERRED SHAREHOLDERS FOR ORDER DIRECTING

APPOINTMENT OF STATUTORY COMMITTEE OF PREFERRED SHAREHOLDERS PURSUANT TO BANKRUPTCY CODE SECTION 1102(a)(2) to be filed via the Court's ECF system and served on the parties listed on the attached Service List as so indicated.

/s/ David M. Neff

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INNKEEPERS USA TRUST SERVICE LIST

Party Office of the U.S. Trustee Attn: Paul Kenan Schwartzberg 33 Whitehall Street, 21st Floor New York, NY 10004 Email/Fax/Method of Service Fax: 212-668-2255 Via U.S. Mail Party Innkeepers USA Trust c/o Jennifer Marines Paul Basta Kirkland & Ellis LLP 601 Lexington Avenue New York, NY 10022 Apollo Investment Corporation c/o Paul Weiss Rifkind Wharton & Garrison LLP Alan W. Kornberg, Andrew Ehrlich, Lauren Shumejda 1285 Avenue of the Americas New York, NY 10019-6064 LNR Partners, LLC c/o Bryan Cave LLP Michelle McMahon Lawrence P. Gottesman 1290 Avenue of the Americas New York, NY 10104 Email/Fax/Method of Service jennifer.marines@kirkland.com pbasta@kirkland.com patrick.bryan@kirkland.com Via ECF notification

Apollo Investment Corporation Attn: Joseph D. Glatt 9 West 57th Street New York, New York 10019

jglatt@apollocapital.com Fax: 212-515-3443 Via U.S. Mail

akornberg@paulweiss.com aehrlich@paulweiss.com lshumejda@paulweiss.com Fax: 212-757-3990 Via U.S. Mail michelle.mcmahon@bryancave.com lawrence.gottesman@bryancave.com Fax: 212-541-4630 Via ECF notification

LNR Partners, Inc. c/o Duane Morris LLP Phillip K. Wang William Heuer Margery N. Reed One Market Plaza Spear Tower - Suite 2200 San Francisco, CA 94105-1127 Official Committee of Unsecured Creditors of Innkeepers Trust USA c/o Morrison & Foerster, LLP Lorenzo Marinuzzi Brett H. Miller Jordan A. Wishnew 1290 Avenue of the Americas New York, NY 10104-0050

pwang@duanemorris.com wheuer@duanemorris.com mreed@duanemorris.com Fax: 415-358-4725 Via ECF notification

lmarinuzzi@mofo.com bmiller@mofo.com Fax: 212-468-7900 Via ECF notification

Carrollton-Farmers Branch Independent School District c/o Andrea Sheehan Law Offices of Robert E. Luna 4411 N. Central Expressway Dallas, TX 75205

sheehan@txschoollaw.com Fax: 214-521-1738 Via ECF notification

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Party Lehman ALI Inc. c/o Dechert LLP Nicole B. Herther-Spiro Brian E. Greer 1095 Avenue of the Americas New York, NY 10036

Email/Fax/Method of Service brian.greer@dechert.com nicole.hertherspiro@dechert.com Fax: 212-698-3599 Via ECF notification

Party Ad Hoc Committee of Preferred Shareholders c/o Dewey & Leboeuf LLP Martin J. Bienenstock Timothy Q. Karcher Irena M. Goldstein 1301 Avenue of the Americas New York, NY 10019 Midland Loan Services, Inc. c/o Haynes and Boone, LLP John D. Penn 201 Main Street, Suite 2200 Fort Worth, TX 76102

Email/Fax/Method of Service mbienenstock@dl.com tkarcher@dl.com Fax: 212-259-6333 Via ECF notification

Midland Loan Services, Inc. c/o Haynes and Boone, LLP Lenard M. Parkins Mark Elmore 1221 Avenue of the Americas, 26th Fl. New York, NY 10020 Five Mile Capital Partners LLC c/o Kasowitz Benson Torres & Friedman LLP David M. Friedman Daniel A. Fliman Adam L. Shiff 1633 Broadway New York, NY 10019 Hilton Worldwide, Inc. c/o Kaufmann Gildin Robbins & Oppenheim LLP Bruce R. Alter 550 Mamaroneck Ave., Suite 510 Harrison, NY 10528 Bexar County c/o Linebarger Goggan Blair & Sampson, LLP Elizabeth Weller 2323 Bryan Street Suite 1600 Dallas, TX 75201

lenard.parkins@haynesboone.com Fax: 212- 884-8211 Via ECF notification

john.penn@haynesboone.com Fax: 817-348-2300 Via U.S. Mail

dfriedman@kasowitz.com dfliman@kasowitz.com ashiff@kasowitz.com Fax: 212-506-1800 Via ECF notification

Five Mile Capital II Pooling International LLC c/o Arnold & Porter LLP Anthony Boccanfuso Michael J. Canning 399 Park Avenue New York, NY 10022-4690

anthony.boccanfuso@aporter.com michael.canning@aporter.com Fax: 212-715-1399 Via ECF notification

info@altergoldlaw.com Fax: 914-670-0031 Via U.S. Mail

Best Western International c/o Michael G. Helms 2600 N. Central Avenue, Ste 940 Phoenix, AZ 85004

mghelms@mghlawfirm.com Fax: Via ECF notification

dallas.bankruptcy@publicans.com Fax: 469-221-5002 Via ECF notification

Hilton Worldwide, Inc. c/o Kaufmann Gildin Robbins & Oppenheim LLP David J. Kaufmann Kevin M. Shelley 777 Third Avenue, 24th Floor New York, New York 10017

dkaufmann@kaufmanngildin.com kshelley@kaufmanngildin.com Fax: 212-755-3174 Via ECF notification

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Party Oakland County Treasurer c/o Kilpatrick & Associates, P.C. Richardo I. Kilpatrick 903 North Opdyke Road, Suite C Auburn Hills, MI 48326

Email/Fax/Method of Service ecf@kaalaw.com Fax: 248-377-0800 Via ECF notification

Party Bexar County c/o Linebarger Goggan Blair & Sampson, LLP David G. Aelvoet 711 Navarro, Suite 300 San Antonio, TX 78205 TriMont Real Estate Advisors, Inc. c/o Kilpatrick Stockton LLP Jonathan E. Polonsky 31 West 52nd Street, 14th Fl. New York, NY 10019

Email/Fax/Method of Service sanantonio.bankruptcy@publicans.com Fax: 210-225-6410 Via ECF notification

TriMont Real Estate Advisors, Inc. c/o Kilpatrick Stockton LLP Todd C. Meyers Rex R. Veal Mark A. Fink 1100 Peachtree Street, NE Atlanta, GA 30309-4530 Marriott International, Inc. c/o Sheppard Mullin Richter & Hampton LLP Carren B. Shulman Jane Qin 30 Rockefeller Plaza, Suite 2400 New York, NY 10112 Atlantic City Electric Company c/o McCarthy & White, PLLC William Douglas White 1751 Pinnacle Dr, Suite 1115 McLean, Virginia 22102

tmeyers@kilpatrickstockton.com rveal@kilpatrickstockton.com mfink@kilpatrickstockton.com Fax: 404-815-6555 Via ECF notification cshulman@sheppardmullin.com jqin@sheppardmullin.com Fax: 212-653-8701 Via ECF notification

Via U.S. Mail

Florida Power Corporation dba Progress Energy Florida c/o Meyer Suozzi English and Klein, P.C. Jil Mazer-Marino 990 Stewart Avenue, Suite 300 Garden City, NY 11530-9194 U.S. Foodservice, Inc. c/o Saul Ewing LLP Melissa W. Rand Jeffrey C. Hampton Centre Square West 1500 Market Street, 38th Floor Philadelphia, PA 19102 Appaloosa Investment L.P. I c/o Willkie Farr & Gallagher LLP Rachel C. Strickland 787 Seventh Avenue New York, NY 10019

jmazermarino@msek.com Fax: 516-741-6706 Via ECF notification

wdw@mccarthywhite.com Fax: 703-770-9266 Via ECF notification

mrand@saul.com jhampton@saul.com Fax: (215) 972-1848 Via ECF notification

Appaloosa Investment L.P. I c/o Sidley Austin LLP Lee S. Attanasio 787 Seventh Avenue New York, New York 10019

emcdonnell@sidley.com Fax: 212-839-5599 Via ECF notification

rstrickland@willkie.com Fax: 212-728-8111 Via ECF notification

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Party Rofar Realty Company, Inc. c/o Golenbock Eiseman Assor Bell & Peskoe LLP Jonathan L. Flaxer 437 Madison Avenue New York, NY 10022

Email/Fax/Method of Service jflaxer@golenbock.com Fax: 212.754.0330 Via ECF notification

Party C-III Asset Management CWCapital Asset Management c/o Tashjian & Padian Gerald Padian Bradley M. Rank 729 Seventh Avenue New York, New York 10019 Constellation New Energy c/o Jackson Walker LLP Heather M. Forrest 901 Main Street, Suite 6000 Dallas, TX 75202

Email/Fax/Method of Service gpadian@tashpad.com brand@tashpad.com Fax: 212-319-9883 Via ECF notification

Constellation New Energy c/o Jackson Walker LLP Bruce J. Razinsky D. Elaine Conway 1401 McKinney Street, Suite 1900 Houston, TX 77010 Iron Mountain Information Mgmt, Inc. c/o Bartlett Hackett Feinberg PC Frank F. McGinn 155 Federal Street, 9th Floor Boston, MA 02110

Via U.S. Mail

Via U.S. Mail

ffm@bostonbusinesslaw.com Fax: 617.422.0383 Via ECF notification

State of Michigan, Dept. of Treasury c/o Michael A. Cox, Attorney Gen. Juandisha Harris, Asst Atty Gen. Cadillac Place, Ste. 10-200 3030 W. Grant Blvd. Detroit, MI 48202 Gordon Food Service, Inc. c/o Joseph R. Sgroi

Via ECF notification

Kathleen Devlin, Creditor c/o Sandra Rachel Stanfield Regnier Taylor Curran & Eddy 100 Pearl Street, 10th Floor Hartford, CT 06103 Royal Cup, Inc. c/o Robert W. Tapscott Mindy Y. Kubs

sstanfield@rtcelaw.com Fax: 860.527.4343

jsgroi@honigman.com

Via ECF notification Via ECF notification rtapscott@maynardcooper.com mkubs@maynardcooper.com Via ECF notification

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