NEW ROCHELLE, NEW YORK Chatham Lodging Trust has completed the acquisition of the Residence Inn by Marriott in New Rochelle, New York, an all-cash transaction worth US$21 million.
It is the 12th property acquired by the REIT since its April IPO. Chatham, which is focused on acquiring upscale extended-stay hotels and premium-branded select-service hotels, has one additional hotel under contract.
The purchase price on the 124-suite property amounts to approximately US$169,000 per key.
“With this acquisition, we have invested essentially all of the net proceeds from our IPO, which is well ahead of our announced strategy when we took the company public,” says CEO Jeffrey H. Fisher. “We expect to close on an US$85 million revolving credit facility shortly, which will give us the flexibility to continue our acquisition program, and we just declared our first dividend, so we are pleased with the company’s progress to date.”
The newly acquired hotel will be managed by Island Hospitality Management, a hotel management company that is 90% owned by Fisher.