“Excluding the sold hotels, our comparable portfolio RevPAR increases to $135 from $133. Importantly, we do not have to invest over $4 million renovating these hotels. We will continue to opportunistically sell assets when we believe we can re-deploy those proceeds into high-quality hotel investments that earn higher yields in higher growth markets, thus enhancing our net asset value,” Fisher says.

Chatham sold the hotels at an approximate 6% net operating income capitalization rate (after an assumed annual capital reserve of 4% of total hotel revenues).

The company estimates that the hotels would have contributed approximately $1 million of EBITDA in 2019. Net proceeds from the sale will be utilized to reduce borrowings on Chatham's unsecured credit facility.

Chatham Lodging owns interests in 135 hotels totaling 18,592 rooms/suites, comprised of 40 properties it wholly owns with an aggregate of 6,092 rooms/suites in 16 states and the District of Columbia. The firm also has a minority investment in two joint ventures that own 95 hotels with an aggregate of 12,500 rooms/suites.