Chatham Closes on $1.3B Hotel JV

PALM BEACH, FL—Hotel REIT Chatham Lodging Trust said late Tuesday afternoon it had closed on its biggest acquisitions to date: the previously announced acquisition of a 51-property, 6,848-key portfolio from Cerberus Capital Management. In two separate deals, Chatham entered a $958.5-million joint venture in which Northstar Realty Finance bought out Cerberus’ interest in 47 extended-stay and select-service hotels, while Chatham on its own paid $341.5 million for a quartet of Residence Inn by Marriott properties in Silicon Valley.

As reported by GlobeSt.com on May 9, Northstar and Chatham paired up on an 89.7/10.3 JV, with Chatham maintaining its minority interest in a portfolio concentrated mainly on the East and West coasts and mainly affiliated with Marriott or Hilton brands. Chatham and Cerberus paid $1.02 billion in October 2011 for the Innkeepers portfolio, at the time a 64-asset portfolio, in a deal that allowed Innkeepers USA Trust to exit Chapter 11 bankruptcy.