Saturday, December 7, 2013

Chatham Lodging Acquires SpringHill Suites in Savannah, Georgia’s Downtown Waterfront Historic District

  
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. 

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. 

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  



No comments:

Post a Comment