Chatham Lodging Trust To Buy Hotel

SAN DIEGO-Palm Beach, FL-based Chatham Lodging Trust, a hotel real estate investment trust focused on upscale extended-stay hotels and premium-branded select-service hotels, has signed a contract to acquire an upscale extended-stay hotel in north San Diego, in an all-cash transaction for $32 million. The property marks the 13^th hotel either acquired or under contract to purchase by Chatham in the past four months since its April 21, 2010 initial public offering.  Completion of the hotel acquisition is subject to satisfactory completion of due diligence and other customary closing conditions, according to a company statement. Upon consummation of the transaction, the hotel will be managed by Island Hospitality Management, which is 90%-owned by Jeffrey Fisher, Chatham’s CEO.

Fisher points out that the property fits the REIT’s model of a “great location, in a market with multiple demand generators and superb visibility and accessibility.” He adds that “We believe that the San Diego market also has among the highest barriers to new competition in the country.”