CLDT - Chatham Lodging Trust acquires Beachside Hilton Garden Inn for $31M

Chatham Lodging Trust (NYSE:CLDT) acquired the beachside 111-room Hilton Garden Inn Destin Miramar Beach, Fla., in an off-market transaction for $31M, or ~$279K/room. The acquisition should generate an estimated stabilized NOI yield of 8.0% to 8.5%. "This hotel will generate strong cash flow from the outset, represent our third youngest hotel and generate a 2022 RevPAR premium of ~50% over our current portfolio. Additionally, the hotel diversifies further Chatham's portfolio by adding a predominantly leisure hotel and also expands our presence in the Sunbelt, which we believe will continue to benefit from population growth," CEO and president Jeffrey H. Fisher commented. The purchase was funded using available cash and borrowings under its credit facility. The hotel will be managed by Island Hospitality Management, which is owned by Fisher.

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Chatham Lodging Trust acquires Beachside Hilton Garden Inn for $31M