Chatham Lodging Acquires New Courtyard by Marriott Dallas Downtown
December 06 2018 - 6:45AM
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 the company has acquired the recently opened
167-room Courtyard by Marriott Downtown Dallas, Texas, for $49
million, or approximately $293,000 per room. The hotel opened in
September, 2018.
“This is a gorgeous, brand new, superior-quality hotel located
just two blocks from the Kay Bailey Hutchison Convention Center in
the heart of downtown Dallas,” said Jeffrey H. Fisher, Chatham’s
chief executive officer and president. “This is the first new build
hotel in downtown Dallas since 2011 and will carry a competitive
advantage over nearby select-service hotels which are entirely
adaptive re-use or conversion projects. The area has experienced a
revival since 2010, with over $5 billion of real estate investments
generating a 23 percent increase in downtown population, as well as
an increase in corporate office demand. This hotel expands our
Dallas presence and allows us to leverage our market knowledge and
Island Hospitality’s deep talent pool to generate strong
returns.”
The downtown Dallas market has enjoyed a 7.2 percent cumulative
average growth rate in RevPAR from 2009-2017 and a 5.8 percent
increase in room night demand growth for the same period, driven by
a strong mix of convention, corporate and leisure demand. The
Convention Center, the nations sixth largest, boasts over two
million square feet of space and generates more than one million
room nights of demand annually. The center’s booking pace is up
significantly looking ahead to the next five years. Downtown Dallas
is home to eight Fortune 1000 companies, including AT&T, Tenet
Healthcare, Jacobs Engineering, HollyFrontier, Builders
FirstSource, Neiman Marcus, Comerica and Primoris. There is
currently over 34 million square feet of office space in downtown
Dallas, including 24 million square feet of Class A office space.
The downtown area also boasts more than 135,000 employees, and
Dallas will continue to be a very attractive destination for
corporate relocations. Leisure demand comes from the vast venues
supporting the arts, music, sport and entertainment industries, as
well as museums and historic sites, such as the JFK Memorial Plaza,
which is one block from the hotel.
The Courtyard by Marriott Dallas Downtown is a superbly
constructed, 12-story tower consisting of guest room floors
situated on top of the lobby and parking garage. The hotel has
approximately 3,500 square feet of meeting space on the twelfth
floor that sits adjacent to a rooftop restaurant/bar that offers
stunning panoramic views of Dallas.
“We are very picky when assessing acquisition opportunities, and
this hotel fits our long-term growth strategy to acquire younger,
premium-branded, high-quality hotels in infill locations with
diverse demand generators. The top-floor meeting space and rooftop
restaurant/bar provide something unique to downtown Dallas and give
us a tremendous asset to generate incremental business from a
variety of sources,” Fisher highlighted. “Having owned hotels in
Dallas for a long time, the downtown area was forgotten for awhile,
but over the past six years, really has experienced a renaissance.
This hotel is well-positioned to benefit from the significant
growth that is expected to continue in downtown Dallas.”
Chatham funded the purchase using available cash, including $24
million of proceeds from equity issued under its share plans in
2018 and borrowings on its unsecured credit facility. The hotel
will be managed by Island Hospitality Management, which is 51
percent owned by Fisher.
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 137 hotels totaling 18,783
rooms/suites, comprised of 42 properties it wholly owns with an
aggregate of 6,283 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 12,500 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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Dennis Craven (Company)Chief Operating Officer(561) 227-1386
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