In an off-market transaction, Chatham Lodging Trust has acquired two hotels comprising 269 rooms at the Domain in Austin, Texas, for $71.2 million, or approximately $265,000 per room. The acquired hotels include the 132-room Residence Inn Austin Domain, which opened in July 2016, and the 137-room TownePlace Suites Austin Domain, which opened in June 2021.
The hotels will be managed by Island Hospitality Management, which is owned by Fisher.
The Domain is a mixed-use development known as Austin’s “second downtown” with more than 4.2 million square feet of office space, 1.8 million square feet of retail space, plus another 2.8 million additional square feet of office space expected to be delivered over the next two years, and another 3.8 million square feet of office space planned. Companies with large offices located at the Domain include IBM, Amazon, Facebook, Indeed, Expedia/VRBO, and Trend Micro Companies. Apple is constructing a 2-million-square-foot office campus approximately 5 miles from the Austin acquisitions that will cost over $1 billion and eventually accommodate around 15,000 employees. For comparison purposes, Apple Park, Apple’s main campus in Cupertino, California, is approximately 2.8 million square feet.