Chatham Lodging Trust sells two Pennsylvania hotels for $10M

Chatham Lodging Trust sold the Courtyard by Marriott Altoona along with the SpringHill Suites by Marriott Pittsburgh Washington, both of which are located in Pennsylvania, for $10 million. Photo credit: Chatham Lodging Trust

Chatham Lodging Trust sold two western Pennsylvania hotels, the 105-room Courtyard by Marriott Altoona and the 86-key SpringHill Suites by Marriott Pittsburgh Washington, for $10 million. Inclusive of brand required improvements of more than $4 million, the real estate investment trust sold the properties at around 6 percent net operating income capitalization rate (after an assumed annual capital reserve of 4 percent of total hotel revenues).

“We acquired these smaller hotels as part of a portfolio purchase in 2010, and the hotels had a pretty good run for five years, but no longer meet our long-term investment strategy,” Jeffrey H. Fisher, Chatham’s CEO and president, said in a statement. “These two non-core hotels, in very small markets and with combined [revenue per available room] of $65, do not match the overall quality of our portfolio. Excluding the sold hotels, our comparable portfolio RevPAR increases to $135 from $133.”

Chatham Lodging Trust estimated the hotels would have contributed around $1 million of earnings before interest, taxes, depreciation and amortization in 2019. The company will use net proceeds from the sale to reduce borrowings on its unsecured credit facility.

Virtual Event


Survival in these times is highly dependent on a hotel's ability to quickly adapt and pivot their business to meet the current needs of travelers and the surrounding community. Join us for Optimization Part 2 – a FREE virtual event – as we bring together top players in the industry to discuss alternative uses when occupancy is down, ways to boost F&B revenue, how to help your staff adjust to new challenges and more, in a series of panels focused on how you can regain profitability during this crisis.

Suggested Articles

The project encompassed a real-time, two-way integration between Infor HMS and Glowing’s Digital Engagement Cloud at Mandarin Oriental hotels.

Two upcoming hotels (and one historic property) in sunshine destinations have announced new leaders for their F&B programming.

Many hotel owners will find themselves in the uncomfortable and unfamiliar position of deciding on a course of action for negotiating with their lende