By Business Wire, October 03, 2013, 08:58:00 AM EDT
PALM BEACH, Fla.--(BUSINESS WIRE)--
Chatham Lodging Trust (NYSE:CLDT), a hotel real estate investment trust
(REIT) focused on investing in upscale, extended-stay hotels and premium
branded, select-service hotels, today announced that it has acquired the
180-room Hilton Garden Inn Denver Tech Center for a purchase price of
$27.9 million, plus customary pro-rated amounts and closing costs.
Converted to the Hilton Garden Inn brand in October 2008, the hotel is
ideally located in the heart of the Denver Tech Center at the junction
of Interstate 25 and Interstate 225. The Denver Tech Center spans 850
acres and contains more than 25 million square feet of office space,
almost half of which is comprised of Class A and Class B space. The
Denver Tech Center also is home to over 1,000 companies employing more
than 35,000 people, including such esteemed companies as Oracle, Newmont
Mining, EMC Corporation and IBM.
The first Hilton Garden Inn in Chatham's portfolio, the hotel features
3,600 square feet of meeting space capable of hosting events for up to
300 people. Additional amenities include a restaurant and bar, Starbucks
kiosk, indoor pool and a location adjacent to a light-rail station that
provides convenient transportation to downtown Denver. In 2014, the
hotel's lobby will be restyled with the brand's "Project Grow" design,
and the rooms will receive a soft-goods renovation.
"The Hilton brands continue to provide superior returns on investment,
and we are pleased to further our relationship with Hilton Worldwide
with the acquisition of our first Hilton Garden Inn hotel, sitting in
one of the best locations of the Denver Tech Center, a massive thriving
corporate business park," said Jeffrey H. Fisher, Chatham's chief
executive officer. "We have a deep understanding of the Tech Center
market through our ownership of a Residence Inn in the Innkeepers joint
venture and Island Hospitality's operation of the hotel. It is a great
advantage to be able to underwrite and diligence acquisitions across the
country through this teamwork, and we are confident we will be able to
drive enhanced returns out of the gate at this hotel. We continue to
find hotels that meet our strict underwriting criteria, exhibiting
strong growth characteristics and demand generators, as we build Chatham
into a premier lodging REIT."
The Hilton Garden Inn Denver Tech Center is managed by Island
Hospitality Management (IHM), which is 90 percent owned by Mr. Fisher.
Chatham funded the purchase with borrowings on its secured revolving
Chatham also announced the unveiling of the recently rebranded Residence
Inn Washington D.C./Foggy Bottom after an extensive $5.5 million
renovation. The 103-suite hotel, formerly a DoubleTree Guest Suites by
Hilton, is the only branded, upscale, extended-stay hotel in the
prestigious, historic Foggy Bottom neighborhood.
The renovation included an expanded lobby to accommodate the Residence
Inn's complimentary breakfast, evening social hours and mid-week
dinners, as well as an enlarged fitness center. The 700-square foot,
two-bay, guest suites (nearly double the size of most extended-stay
hotel rooms) were completely renovated, including new bathrooms, full
kitchens, new furnishings and soft goods.
"This is a great asset in a fantastic location and given the large
suites, is ideally flagged as a Residence Inn," highlighted Mr. Fisher.
"When we acquired the hotel out of the Innkeepers bankruptcy, we knew it
was a great piece of real estate, and we believed we could realize
incremental value by either repositioning the asset or selling the hotel
for alternative uses. With the Residence Inn brand, we expect this hotel
will command a much higher RevPAR premium and drive incremental value
and cash flow to our portfolio."
About Chatham Lodging Trust
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 owns interests in 74 hotels totaling
10,297 rooms/suites, comprised of 23 hotels it wholly owns with an
aggregate of 3,202 rooms/suites in 13 states and the District of
Columbia and holds a minority investment in two joint ventures that own
52 hotels with an aggregate of 7,095 rooms/suites. Additional
information about Chatham may be found at www.chathamlodgingtrust.com.
This press release may contain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995
about Chatham Lodging Trust, including statements regarding future
plans, strategies, performance, acquisitions, capital expenditures,
future operating results and the timing and composition of revenues,
among others, and statements containing words such as "expects,"
"believes" or "will," which indicate that those statements are
forward-looking.Except for historical information, the matters
discussed in this press release are forward-looking statements that are
subject to certain risks and uncertainties that could cause the actual
results or performance to differ materially from those discussed in such
statements.Additional risks are discussed in the company's
filings with the Securities and Exchange Commission.
Source: Chatham Lodging Trust