Wednesday, May 18, 2022

Chatham Lodging Trust Announces Sale of Four Hotels

Jeffrey H. Fisher


WEST 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 the closing of the sales of four hotels comprising 537 rooms for aggregate proceeds of approximately $80 million.

 Including near term capital expenditure requirements, the aggregate sales proceeds would equate to an approximate 2 and 6 percent capitalization rate on net operating income for 2021 and 2019, respectively. The four hotels comprise the following:

  • 180-room Hilton Garden Inn, Burlington, Massachusetts
  • 100-room Courtyard by Marriott Houston West University
  • 120-room Residence Inn by Marriott Houston West University
  • 137-room Homewood Suites by Hilton Dallas Market Center

  • 180-room Hilton Garden Inn, Burlington, MA



 

Burlington

 

CY West U

 

RI West U

 

HW Dallas

 

Year Built

1975

 

2004

 

2004

 

1998

 

2021 RevPAR

$31

 

$60

 

$64

 

$80

 

2019 RevPAR

$110

 

$94

 

$85

 

$97

 

CAPEX (2022-2023)

~$7mm

 

~$4mm

 

<$1mm

 

<$1mm

 

 

“We want to recycle capital out of older assets into newer hotels with higher growth prospects.  The sale of these four hotels is a giant step towards reducing the average age of our portfolio and providing ample liquidity for future growth,” highlighted Jeffrey H. Fisher, Chatham’s president and chief executive officer. 

“These are home-run transactions. We have emerged from the pandemic with a stronger balance sheet and have the capacity to make value-enhancing acquisitions and generate incremental distributable cash flow,” Fisher concluded.

Contacts:

Dennis Craven (Company)                                        

Chief Operating Office

(561) 227-1386    


 Chris Daly (Media)

DG Public Relations

 (703) 864-5553

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