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| 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.
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| 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.
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| 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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