Saturday, November 2, 2013

Chatham Lodging Acquires Residence Inn in Downtown Bellevue, WA

  
Residence Inn by Marriott Seattle Bellevue/Downtown Hotel, Bellevue, WA


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 231-room Residence Inn by Marriott Seattle Bellevue/Downtown for a net cash purchase price of $71.8 million, plus customary, pro-rated amounts and closing costs. 

Jeffrey H. Fisher
The purchase price represents a forward twelve month capitalization rate of approximately 7.8 percent on the hotel’s projected net operating income.  

Year to date through September 30, 2013, RevPAR at the Bellevue hotel is up 13% to $131.

The urban, mid-high rise hotel opened in 2008 and is situated along Interstate 405 (the area’s primary corridor), providing immediate access to downtown Bellevue’s 7.5 million square feet of Class “A” office space inventory, including the region’s high concentration of top-tier technology and telecommunications firms, such as Microsoft, Amazon, Expedia, T-Mobile and AT&T.

Peter Willis
The Bellevue market has undergone a major transformation over the past ten plus years into a premier, 24-hour, live-work-play environment.

“We are very excited to acquire one of the highest rated hotels in the Residence Inn by Marriott system, a superior quality property on an urban, infill site in one of the most desirable west coast corporate markets,” said Jeffrey H. Fisher, Chatham’s chief executive officer. 

“This hotel aligns perfectly with our strategy of acquiring coastal area hotels where demand is driven primarily by corporate travelers focused in the ever-growing technology, energy or medical sectors.”

“The Seattle/Bellevue market has been on our radar for some time given our deep understanding of the market and its growth prospects based on our many years of experience in the Seattle market, including the Bellevue market, through our ownership of four Residence Inns in the Innkeepers joint venture and Island Hospitality’s operation of the hotels,” says Peter Willis, Chatham’s chief investment officer.


“It is a competitive advantage for Chatham to be able to leverage Island’s knowledge of a market and diligently assess an acquisition. 

"We expect great returns from this hotel. We have a very active and deep pipeline of prospective targets and intend to use capacity on our balance sheet to acquire hotels that meet our strict underwriting criteria.”

The Residence Inn by Marriott Seattle Bellevue/Downtown is managed by Island Hospitality Management (IHM), which is 90 percent owned by Mr. Fisher. Chatham funded the purchase with available cash and borrowings on its secured revolving credit facility of $59 million.

 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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