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| Jeffrey H. Fisher |
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, announced that
it completed the previously announced acquisition of a 52-hotel, 6,976-room
portfolio from Inland American (Inland).
The combined total purchase price was approximately $1.1
billion, before deal costs and funding of escrows.
Chatham acquired four hotels as part of the sale of the
52-hotel portfolio for a purchase price of $106.7 million, or approximately
$186k per room, before deal costs. The
four hotels are comprised of the following:
· 179-room
Hilton Garden Inn Burlington, Mass.
· 176-room
Courtyard by Marriott Dallas (Addison), Texas
· 120-room
Residence Inn by Marriott West University Houston, Texas
· 100-room
Courtyard by Marriott West University Houston, Texas
“These top-tier branded hotels expand our presence in some
of the country’s best hotel markets and match our strategy of targeting
specific high growth markets based on growing corporate demand tied to the
technology, medical and oil and gas industries,” said Jeffrey H. Fisher,
Chatham’s chief executive officer and president.
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| Hilton Garden Inn, Burlington, MA |
“Given our confidence in the health of the hotel industry,
we will continue to be net buyers of high-quality hotels.”
The remaining 48 upscale extended-stay hotels and
premium-branded, select-service hotels were purchased by a joint venture
comprised of NorthStar Realty Finance Corp (NYSE: NRF), a diversified
commercial real estate company that is organized as a REIT, and Chatham for a
purchase price of $964 million before deal costs and funding of escrows, or
$151k per room.
NorthStar owns a 90 percent ownership interest in the joint
venture, and Chatham owns a 10 percent interest. Chatham acquired its 10
percent equity interest in the joint venture for approximately $28 million.
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| Courtyard by Marriott, Dallas, TX |
Chatham financed the investments with available cash and
borrowings under its revolving credit facility of $69 million.
In late
September, Chatham issued 6.9 million common shares, generating net proceeds of
approximately $144.6 million, which was used at the time to repay any
borrowings outstanding on its revolving credit facility.
All four of the Chatham wholly-owned hotels and 34 of the 48
hotels owned by the joint venture will be managed by Island Hospitality
Management, a hotel management company that currently is 90 percent owned by
Fisher.
For a complete copy of the company’s news
release, please contact:
Chris Daly
Daly Gray Public Relations
(Media)
(703) 435-6293
Dennis Craven
Chatham Lodging Trust
(Company)
(561) 227-1386
