Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust, has paid a reported $195 million for five hotels totaling 764 rooms across the country, including a 192-room Residence Inn in Mission Valley.
The acquisition -- which works out to about $255,000 per room -- also includes a 200-room Residence Inn in Anaheim; a 121-room Residence Inn in Tysons Corner, Va.; a 146-room Homewood Suites on the Riverwalk in San Antonio; and the 105-room Doubletree Guest Suites in Washington, D.C.
"These top-tier branded hotels give us a strong presence in some of the country's prime hotel markets," said Jeffrey Fisher, Chatham CEO and president, in a statement.
Chatham funded the acquisition through the assumption of five individual mortgage loans, secured by the hotels, totaling $134.2 million, as well as available cash and borrowings under its senior secured revolving credit facility.
The five loans have a weighted average interest rate of 6.0 percent and mature in 2016.
These five hotels will continue to be managed by Island Hospitality Management, a hotel management company 90 percent owned by Fisher.
Chatham Lodging Trust is a self-advised REIT that was organized to invest in upscale extended-stay hotels and premium-branded, select-service hotels.
The company currently owns 18 hotels with an aggregate of 2,414 rooms/suites in 10 states and the District of Columbia, has one additional hotel comprising 174 rooms/suites under contract and holds a minority investment in a joint venture that plans to acquire 64 hotels in the third quarter of 2011.