WEST PALM BEACH, Fla., May 16, 2022 —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 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
| 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.
