Chatham Lodging Acquires Brand New Residence Inn Charleston Summerville, S.C.
August 28 2018 - 4:15PM
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 96-room Residence Inn by
Marriott Charleston Summerville, S.C., for $20.8 million, or
approximately $217,000 per room.
“This is a beautiful, brand new, superior-quality hotel located
in Nexton, a rapidly expanding area just outside of Charleston
which sits in the direct path of metro Charleston’s most energetic
growth,” said Jeffrey H. Fisher, Chatham’s chief executive officer
and president. “Including the Courtyard by Marriott Charleston
Summerville, this marks our second hotel in the heart of Nexton, a
thriving community which mixes a smart, vibrant blend of
businesses, schools, new homes, apartments, shops and eateries
connected to each other by trails, parks and nature, and connected
to the world through leading-edge technology.
“Volvo has completed construction of its first American factory,
a state-of-the-art, 2.3-million-square-foot facility on nearly
3,000 acres very close to Nexton that is expecting its first cars
to come off the production line in the next few months.
Additionally and importantly for continued economic expansion in
the area, Volvo has already announced plans to expand the facility
with a second production line with completion estimated in 2020,”
Fisher highlighted. “Our two hotels are the nicest and closest
hotels to the new factory and are best positioned to service
corporate guests given the mix of rooms and suites at our Courtyard
and Residence Inn hotels. Given the recent run-up in construction
costs, we already are acquiring this hotel below replacement cost,
and operationally, we are able to leverage our operating expenses
across two adjacent hotels which should generate higher than
underwritten returns.”
South Carolina has been one of the fastest growing states in the
country over the last five years due to the relocation of major
corporations, as well as corporate investment and expansion. The
state has one of the highest migration rates in the country for
in-bound, college graduates under the age of 40. In the greater
Charleston area, corporate demand is well-diversified with the area
home to companies within the aerospace, automotive, bioscience,
marine and distribution industries. Additionally, the region is
home to over 250 technology companies employing more than 11,000
employees. Specifically, Nexton is projected to encompass
approximately 10,000 homes, eight million commercial square feet
and a medical campus over the next decade. In addition to the
nearby Volvo facility, other major companies, such as Daimler and
Boeing, have significant facilities in the area and have acquired
additional land to expand their operations.
Chatham funded the purchase using available cash and borrowings
on its unsecured credit facility. The hotel will be managed by
Island Hospitality Management, which is 51 percent owned by Fisher.
Chatham estimates it acquired the property at a year two net
operating income capitalization rate of approximately eight
percent.
About Chatham Lodging Trust
Chatham Lodging Trust is a self-advised, publicly-traded real
estate investment trust focused primarily on investing in upscale,
extended-stay hotels and premium-branded, select-service hotels.
The company owns interests in 136 hotels totaling 18,616
rooms/suites, comprised of 41 properties it wholly owns with an
aggregate of 6,117 rooms/suites in 15 states and the District of
Columbia and a minority investment in two joint ventures that own
95 hotels with an aggregate of 12,499 rooms/suites. Additional
information about Chatham may be found
at 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.
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Chatham Lodging TrustDennis Craven, 561-227-1386Chief Operating
Officer
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