PALM BEACH, FL—Hotel REIT Chatham Lodging Trustsaid late Tuesday afternoon it had closed on its biggestacquisitions to date: the previously announced acquisition of a51-property, 6,848-key portfolio from Cerberus CapitalManagement. In two separate deals, Chatham entered a$958.5-million joint venture in which Northstar RealtyFinance bought out Cerberus' interest in 47 extended-stayand select-service hotels, while Chatham on its own paid $341.5million for a quartet of Residence Inn by Marriott properties inSilicon Valley.

As reported by GlobeSt.com on May 9, Northstar and Chathampaired up on an 89.7/10.3 JV, with Chatham maintaining itsminority interest in a portfolio concentrated mainly on the Eastand West coasts and mainly affiliated with Marriott or Hiltonbrands. Chatham and Cerberus paid $1.02 billion in October 2011 forthe Innkeepers portfolio, at the time a 64-assetportfolio, in a deal that allowed Innkeepers USA Trust to exitChapter 11 bankruptcy.

Chatham plans to redevelop and expand all four Silicon ValleyResidence Inn hotels to increase the room count by 36% from thepresent total of 751 keys to 1,023. The 272-room expansion wouldinclude a new lobby and public spaces in each location, with anestimated cost totaling $59 million or $217,000 per additionalroom. Island Hospitality will continue managingthe entire Innkeepers portfolio, as it did under theChatham/Cerberus JV.