Chatham Lodging Trust acquires five premium hotels

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Published on 09/05/11 - Updated on 17/03/22

Chatham Lodging Trust, a hotel real estate investment trust focused on investing in upscale extended-stay hotels and premium-branded select-service hotels, announced that it was the successful bidder in two separate and distinct bankruptcy court auctions resulting in aggregate investments by Chatham of over $230 million, doubling Chatham’s current investments.

A joint venture formed by Cerberus Capital Management and Chatham was selected as the winning bidder in the bankruptcy court auction related to 64 of Innkeepers USA Trust (the Sellers) hotels. Under the terms of the winning bid, Cerberus and Chatham will be the plan sponsors to acquire the hotels for a total purchase price of approximately $1.125 billion, including the assumption of debt through a plan of reorganization. Chatham will fund its investment in the joint venture with available cash and borrowings under Chatham’s secured revolving credit facility.In a separate transaction, Chatham was selected yesterday as the winning bidder in a bankruptcy court auction related to five additional hotels owned by affiliates of Innkeepers. Chatham has executed a purchase agreement with the Sellers to acquire the following five hotels, comprising 764 rooms, for $195 million, or $255,000 per room.In a separate transaction, Chatham was selected yesterday as the winning bidder in a bankruptcy court auction related to five additional hotels owned by affiliates of Innkeepers. Chatham has executed a purchase agreement with the Sellers to acquire the following five hotels, comprising 764 rooms, for $195 million, or $255,000 per room.

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