Chatham Lodging Trust has closed on 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% capitalization rate on net operating income for 2021 and 2019, respectively. The four hotels comprise the following:
- 180-room Hilton Garden Inn Boston-Burlington in Burlington, MA (Year built: 1975; 2021 RevPAR: $31; 2019 RevPAR: $110)
- 100-room Courtyard by Marriott Houston West University (2004; $60; $94)
- 120-room Residence Inn by Marriott Houston West University (2004; $64; $85)
- 137-room Homewood Suites by Hilton Dallas Market Center (1998; $80; $97)
“We want to recycle capital out of older assets into newer hotels with higher growth prospects,” said Jeffrey H. Fisher, president/CEO, Chatham. “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. 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.”