SAN DIEGO—Chatham Lodging Trust, a hotel real estate investment trust, has completed the previously announced acquisition of the 240-room Residence Inn San Diego Downtown-Gaslamp Quarter for $90 million, or approximately $375,000 per room.

“Having invested approximately $500 million into new hotel investments in 2014, our outlook on the industry remains bullish, and we expect to continue acquiring hotels in 2015 that meet our strict underwriting criteria,” said Jeffrey Fisher, chief executive officer, Chatham Lodging Trust. “The Residence Inn is ideally located in the heart of the Gaslamp Quarter, just a block away from the San Diego Convention Center, one of the most popular convention markets in the country given San Diego's beautiful year-round climate. This high-quality, downtown, infill hotel in one of the best lodging markets in the country is an ideal addition to our expanding presence in California.”

The seller is San Deigo-based J Street Hospitality. Opened in 2009, the Residence Inn is within walking distance to the Petco Park and the Westfield Horton shopping complex. The hotel has 1,500 square feet of meeting space and offers the full range of Residence Inn amenities, including free breakfast and complimentary Wi-Fi. The property includes street-level retail space which presently incorporates two leased restaurants that cater to the pedestrian traffic within the popular Gaslamp Quarter. The property also includes a three-level, below-ground, 123-space structured parking garage. These varying sources of income were included in the $90 million purchase price and, including all income, Chatham estimates it acquired the property at a 7.6 % capitalization rate on 2015 projected net operating income. The hotel represents Chatham's second San Diego-area hotel, joining the Residence Inn San Diego Mission Valley.