"This is a great addition to our portfolio, further enhances its quality and geographic distribution," commented Dennis Craven, Chatham's chief operating officer. "Given the current disconnect in public pricing of our common stock, we will use debt and other sources to fund acquisitions over the near term. Our balance sheet is in great shape and we are comfortable adding leverage, as well as potentially recycling capital out of existing assets into hotels in higher growth markets."
The Residence Inn Fort Lauderdale Intracoastal/Il Lugano opened in 2008 as the Il Lugano Hotel and Residences and was converted to a Residence Inn in 2014. The stunning 14-story building is located on the eastern edge of the Intracoastal Waterway at Oakland Park Blvd., in Fort Lauderdale and includes 105 oversized rooms ranging from 550 to over 850 square feet, all with views of the Intracoastal Waterway and/or the Atlantic Ocean. Other hotel amenities include the Coastal View Restaurant, intracoastal waterfront meeting room, 177-space parking garage and waterfront deck with docks that can be expanded for added food and beverage operations. The building includes independently owned condominiums that are not a component of the hotel's operations.
For the discerning traveler, the hotel provides excellent access to some of the more exclusive beaches and restaurants as compared to hotels along the Fort Lauderdale strip. The market continues to experience significant growth in tourism, and the hotel will benefit from the almost $2.5 billion expansion and renovation of the Fort Lauderdale International Airport currently underway which will attract more travelers from the United States, Central America and South America.
Chatham funded the Fort Lauderdale Intracoastal purchase with available cash and borrowings on its revolving credit facility. The hotel will be managed by Island Hospitality Management, a leading hotel management company which is 51 percent owned by Fisher.