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| SpringHill Suites by Marriott Savannah Downtown/Historic District, Savannah, GA |
SAVANNAH, GA and PALM BEACH, FL —Chatham Lodging Trust
(NYSE: CLDT), a hotel real estate investment trust (REIT) focused on investing
in upscale, extended-stay hotels and premium-branded, select-service hotels,
today announced that it has acquired the 160-room SpringHill Suites by
Marriott Savannah Downtown/Historic District for $39.8 million, plus
customary acquisition and closing costs.
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| Jeffrey H. Fisher |
Chatham funded the purchase with available cash and
borrowings on its secured revolving credit facility.
Following the acquisition, the company’s leverage ratio is 37
percent, calculated as net debt to hotel investment at cost.
Chatham currently has the capacity to make
incremental acquisitions in the range of $150-$200 million on its balance
sheet.
The purchase price represents a forward 12- month
capitalization rate of approximately 8.5 percent based on the hotel’s projected
net operating income.
Year-to-date through September 30, 2013, the hotel’s RevPAR
is up nearly 6 percent to $113.
The SpringHill Suites is the newest hotel within Savannah’s
landmark waterfront Downtown/Historic District.
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| Savannah Downtown Historic District |
Constructed under the strict guidelines of the Historic
District’s Preservation Plan and the Savannah Metropolitan Planning Commission,
the hotel blends in well with the neighborhood, which is characterized by
meticulously restored buildings.
The Historic District is considered the largest National
Historic Landmark District in the United States and is ranked as one of the Top
10 City Destinations in the United States attracting more than 50 million visitors in the past decade.
“Despite the current competitive transaction climate in the
lodging industry, we continue to source high quality acquisitions in off-market
transactions through our extensive industry relationships,” said Jeffrey H.
Fisher, Chatham’s chief executive officer.
”This hotel matches our strategy perfectly with its infill
location, recent construction in 2009, high barriers to new competition and
strong, growing demand.
“Similar to our downtown Portland, Maine Hampton Inn and
Suites, demand at this hotel is consistently strong for leisure travelers
year-round, due to its great location.
“The hotel also attracts the corporate traveler segment,
which seeks a premium-branded hotel in a great location within the beautiful
Historic District.”
For a complete copy of the company’s news release, please
contact:
Jerry Daly
Daly Gray Public Relations
(703) 435-6293
Dennis Craven
Chief Financial Officer
(561) 227-1386
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