Comprising 764 Total Rooms for $195 Million, or Approximately $255,000 per Room
Chatham Lodging Trust, a hotel real estate investment trust focused on investing in premium-branded, select-service hotels, announced that it has acquired the five Innkeepers hotels listed below, which comprise a total of 764 rooms, for a total purchase price of $195 million, or approximately $255,000 per room. The previously announced acquisition nearly doubles Chatham’s existing hotel investments.These five hotels will continue to be managed by Island Hospitality Management, a hotel management company that is 90-percent owned by Fisher.The hotels:-* Residence Inn Anaheim in Garden Grove, CA - 200 rooms -* Residence Inn San Diego in Mission Valley, CA - 192 rooms -* Residence Inn Tysons Corner, VA - 121 rooms -* Doubletree Guest Suites Washington, D.C. - 105 rooms -* Homewood Suites on the Riverwalk San Antonio, TX 146 roomsRoom total is 764.Chatham funded the acquisition through the assumption of five individual mortgage loans, secured by the hotels, totaling $134.2 million, as well as available cash and borrowings under its senior secured revolving credit facility. The five loans have a weighted average interest rate of 6.0 percent and mature in 2016. They will amortize based on a 30-year amortization period, other than the loan related to the hotel in Garden Grove, Calif., which will be interest-only for the first two years after closing. The five loans are pre-payable in whole at any time without prepayment premiums or defeasance.These five hotels will continue to be managed by Island Hospitality Management, a hotel management company that is 90-percent owned by Fisher.
