WEST PALM BEACH, Florida—Chatham Lodging Trust announced the closing of the sales of four hotels comprising 537 rooms for aggregate proceeds of approximately $80 million.
Including near-term capital expenditure requirements, the aggregate sales proceeds would equate to an approximate 2 and 6 percent capitalization rate on net operating income for 2021 and 2019, respectively. The four hotels comprise the following:
- 180-room Hilton Garden Inn, Burlington, Massachusetts
- 100-room Courtyard by Marriott Houston West University
- 120-room Residence Inn by Marriott Houston West University
- 137-room Homewood Suites by Hilton Dallas Market Center
“We want to recycle capital out of older assets into newer hotels with higher growth prospects. The sale of these four hotels is a giant step towards reducing the average age of our portfolio and providing ample liquidity for future growth,” highlighted Jeffrey H. Fisher, Chatham’s president and chief executive officer. “These are home-run transactions. We have emerged from the pandemic with a stronger balance sheet and have the capacity to make value-enhancing acquisitions and generate incremental distributable cash flow,” Fisher concluded.