Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) that invests in upscale, extended-stay hotels and premium-branded, select-service hotels — announced Friday it has bought the SpringHill Suites by Marriott in downtown Savannah.
The Palm Beach, Fla.-based company said the purchase price for the 160-room hotel at 150 Montgomery St. was $39.8 million plus acquisition and closing costs.
Chatham’s announcement said it funded the purchase with available cash and borrowings on its secured revolving credit facility and still has the capacity to make additional acquisitions in the range of $150-$200 million.
“Despite the current competitive transaction climate in the lodging industry, we continue to source high quality acquisitions in off-market transactions through our extensive industry relationships,” said Jeffrey H. Fisher, Chatham’s chief executive officer. “This hotel matches our strategy perfectly with its infill location, recent construction in 2009, high barriers to new competition and strong, growing demand.”
Fisher said demand is consistently strong for leisure travelers and it also attracts corporate travelers.
Peter Willis, Chatham’s chief investment officer, said the firm, since December 2012, has acquired seven hotels in desirable locations with an average of less than four years for about $260 million.
“These are top-quality assets with excellent operating fundamentals and significant upside potential,” Willis said. “We have a very active and deep pipeline of prospective targets and intend to use capacity on our balance sheet to continue to acquire hotels that meet our strict underwriting criteria.”
For more information, go to www.chathamlodgingtrust.com.
