Chatham Lodging Trust, a hotel real estate investment trust, has sold four hotels with a total of 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 are:
- 180-room Hilton Garden Inn, Burlington, Mass., which was built in 1975. It had 2021 revenue per available room of $31 and 2019 RevPAR of $110. Its CAPEX (2022-2023) is ~$7 million.
- 100-room Courtyard by Marriott Houston West University, which was built in 2004. It had 2021 RevPAR of $60 and 2019 RevPAR of $94. Its CAPEX (2022-2023) is ~$4 million.
- 120-room Residence Inn by Marriott Houston West University, which was built in 2004. It had 2021 RevPAR of $64 and 2019 RevPAR of $85. Its CAPEX (2022-2023) is less than $1 million.
- 137-room Homewood Suites by Hilton Dallas Market Center, which was built in 1998. It had 2021 RevPAR of $80 and 2019 RevPAR of $97. Its CAPEX (2022-2023) is less than $1 million.
“We want to recycle capital out of older assets into newer hotels with higher growth prospects," Chatham President and CEO Jeffrey Fisher said in a statement. "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. 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."