UPDATE 1-Innkeepers USA gets OK for more DIP financing

NEW YORK, Sept 1 (Reuters) - U.S. hotel owner Innkeepers USA Trust (INKPQ.PK) may obtain supplemental bankruptcy financing from an affiliate of Lehman ALI Inc, a bankruptcy judge ruled on Wednesday.

The judge's decision overruled the objections of special servicer Trimont Real Estate Advisors Inc, which opposed the additional financing saying that Innkeepers did not need "that kind of leverage."

Lehman ALI, a unit of Lehman Brothers Holdings Inc LEHMQ.PK can provide as much as $17.5 million in financing to help fund hotel improvements and pay expenses, said U.S. Bankruptcy Judge Shelley Chapman at a New York hearing. Innkeepers' portfolio includes some Residence Inn and Hampton Inn hotels.

"We think this is a reasonable facility...(which will) enhance all of the hotels," said Kirkland & Ellis attorney Anup Sathy, who represents Innkeepers.

Innkeepers filed for bankruptcy in July, citing crippling debt that hurt its ability to maintain and upgrade its properties. The company owns and operates a portfolio of about 72 upscale and mid-priced hotels under recognized brands such as Marriott (MAR.N), Hilton and Hyatt. About half of its properties operate as Marriott's Residence Inn hotels.

Lehman ALI is not operating under bankruptcy protection, though its parent Lehman Brothers Holdings filed for bankruptcy in 2008.

Private equity company Apollo Investment Corp (AINV.O) bought the Palm Beach, Florida, hotel owner at the height of the real estate market in 2007.

Apollo Investment Corp is managed by an affiliate of the private equity firm Apollo Global Management LLC. Apollo Investment Corp has already written down its original investment in Innkeepers by 99 percent, according to securities filings.

The case is In re Innkeepers USA Trust, U.S. Bankruptcy Court, Southern District of New York, No. 10-13800. (Additional reporting by Jonathan Stempel) (Reporting by Chelsea Emery, editing by Dave Zimmerman)