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