SPRINGFIELD, VA–Chatham Lodging Trust has acquired the 219-suite Embassy Suites by Hilton here for $68 million, or $310,000 per suite. The hotel traded in an off-market transaction.
The West Palm Beach, FL-based REIT estimates the trade has a year one NOI cap rate of 7.5%. In addition, according to CEO Jeffrey H. Fisher, it generates approximately 10% RevPAR premium to its existing properties and needs no capex for several years.
Chatham funded the purchase through cash from its recently completed five-million share offering, which raised $109 million. With the Embassy Suites by Hilton acquisition, Chatham has invested 81% of the proceeds from the share offering.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
