Sales Enhance Portfolio Quality, Provide Ample Liquidity for Growth
WEST PALM BEACH, Fla., May 16, 2022--(BUSINESS WIRE)--Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) focused on investing in upscale, extended-stay hotels and premium-branded, select-service hotels, today 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
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"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.
About Chatham Lodging Trust
Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns 39 hotels with 5,914 rooms/suites in 16 states and the District of Columbia. Additional information about Chatham may be found at chathamlodgingtrust.com.
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Dennis Craven (Company)
Chief Operating Officer