PALM BEACH, FL—Hotel REIT Chatham Lodging Trust said late Tuesday afternoon it had closed on its biggest acquisitions to date: the previously announced acquisition of a 51-property, 6,848-key portfolio from Cerberus Capital Management. In two separate deals, Chatham entered a $958.5-million joint venture in which Northstar Realty Finance bought out Cerberus' interest in 47 extended-stay and select-service hotels, while Chatham on its own paid $341.5 million for a quartet of Residence Inn by Marriott properties in Silicon Valley.

As reported by GlobeSt.com on May 9, Northstar and Chatham paired up on an 89.7/10.3 JV, with Chatham maintaining its minority interest in a portfolio concentrated mainly on the East and West coasts and mainly affiliated with Marriott or Hilton brands. Chatham and Cerberus paid $1.02 billion in October 2011 for the Innkeepers portfolio, at the time a 64-asset portfolio, in a deal that allowed Innkeepers USA Trust to exit Chapter 11 bankruptcy.

Chatham plans to redevelop and expand all four Silicon Valley Residence Inn hotels to increase the room count by 36% from the present total of 751 keys to 1,023. The 272-room expansion would include a new lobby and public spaces in each location, with an estimated cost totaling $59 million or $217,000 per additional room. Island Hospitality will continue managing the entire Innkeepers portfolio, as it did under the Chatham/Cerberus JV.