PITTSBURGH-Chatham Lodging Trust, a Palm Beach, FL-based REIT, reports it has completed its acquisition of the 178-room Hyatt Place Pittsburgh/North Shore here for $40 million.

The Pittsburgh Hyatt Place opened in December 2010 and is located in next door to PNC Park and Heinz Field.

“This is a stunning, high quality hotel in a fantastic location in downtown Pittsburgh and represents our first Hyatt branded hotel in the Chatham portfolio,” states Jeffrey H. Fisher, Chatham's chief executive officer. “We source the majority of our acquisitions privately, which improves pricing and enables us to pass on incremental value to our shareholders. This acquisition aligns perfectly with our strategy of acquiring premium–branded, upscale extended stay and select-service hotels in high demand markets that command high daily rates and revenue.”

He adds that the average daily rate at the Pittsburgh Hyatt Place is expected to be approximately $163 in 2013, well above the firm's current portfolio rate.

The Pittsburgh Hyatt Place is managed by Island Hospitality Management, which is 90% owned by Fisher. Chatham funded the purchase with borrowings on its secured revolving credit facility and a $24.2-million fixed rate, first-mortgage loan. The 10-year loan was provided by Barclays Bank, plc. The loan carries a fixed interest rate of 4.65 percent per annum, with principal and interest based on a 30-year amortization.