Sale Enhances Portfolio Quality
WEST PALM BEACH, Fla.–(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 that it has sold
the 105-room Courtyard by Marriott Altoona, Pa., as well as the 86-suite
SpringHill Suites by Marriott Washington, Pa. for approximately $10
million. Inclusive of brand required improvements of over $4 million,
Chatham sold the hotels at an approximate six percent net operating
income capitalization rate (after an assumed annual capital reserve of
four percent of total hotel revenues).
“We acquired these smaller hotels as part of a portfolio purchase in
2010, and the hotels had a pretty good run for five years, but no longer
meet our long-term investment strategy,” highlighted Jeffrey H. Fisher,
Chatham’s chief executive officer and president. “These two non-core
hotels, in very small markets and with combined RevPAR of $65, do not
match the overall quality of our portfolio. 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.”
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.
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
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 and a minority investment in two
joint ventures that own 95 hotels with an aggregate of 12,500
rooms/suites. Additional information about Chatham may be found at www.chathamlodgingtrust.com.
This press release may contain “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995
about Chatham Lodging Trust, including statements regarding future
plans, strategies, performance, acquisitions, capital expenditures,
future operating results and the timing and composition of revenues,
among others, and statements containing words such as “expects,”
“believes” or “will,” which indicate that those statements are
forward-looking. Except for historical information, the matters
discussed in this press release are forward-looking statements that are
subject to certain risks and uncertainties that could cause the actual
results or performance to differ materially from those discussed in such
statements. Additional risks are discussed in the company’s
filings with the Securities and Exchange Commission.
Contacts
Chatham Lodging Trust
Dennis Craven, 561-227-1386
[email protected]
