UPDATE 1-Creditor says Innkeepers may get $236 mln investment

* Midland Loan Services seeks to end exclusivity period

* Says alternative plan raises value of co by $125 mln

Aug 31 (Reuters) - Midland Loan Services Inc, a creditor of Innkeepers USA Trust (INKPQ.PK), said asset management firm Five Mile Capital Partners LLC has committed to invest $236.6 million in the bankrupt hotel chain.

Midland asked a U.S. bankruptcy court to terminate Innkeepers' exclusive right to file a reorganization plan and proposed filing an alternative plan based on Five Mile's commitment, according to court documents filed on Monday.

Midland said the rival plan raises the enterprise value of Innkeepers by about $125 million.

Innkeepers currently proposes to transfer 100 percent ownership to another creditor Lehman Brothers Holdings Inc LEHMQ.PK.

Lehman has agreed to sell a 50 percent stake in reorganized Innkeepers to Apollo Investment Corp (AINV.O) for at least $107.5 million.

"Terminating plan exclusivity would give these cases a legitimacy that the debtors (Innkeepers) lack and would allow creditors the chance to increase their returns," Midland said in the court filing.

Midland said that unlike the current reorganization plan, its plan is market-driven and open to higher and better offers.

Innkeepers had sought protection from creditors in July.

The case is In re Innkeepers USA Trust, U.S. Bankruptcy Court, Southern District of New York, No. 10-13800. (Reporting by Santosh Nadgir in Bangalore; Editing by Gopakumar Warrier)