MIAMI—Chatham Lodging Trust just acquired the recently re-opened 194-room Hyatt Place Cherry Creek for $32 million. That translates to about $165,000 per key.

But that's just the beginning for the hotel REIT focused on investing in upscale, extended-stay hotels and premium-brand, select service hotels. The company also committed to acquiring a $1.1 billion hotel portfolio from Inland American Real Estate Trust through a joint venture with Northstar Realty.

And here's another twist. At the same time, Chatham is negotiating with NorthStar to acquire four hotels with 575 rooms out of the portfolio prior to or in connection with the closing. The portfolio transactions are expected to close in the fourth quarter of 2014.

"We are excited about expanding our relationship with Northstar through the joint acquisition of another billion dollar portfolio of quality, extended-stay and limited-service hotels,” says Jeffrey H. Fisher, Chatham's president and CEO. “The joint venture allows Chatham to leverage its investment dollars into a high yielding off-balance sheet investment and if we can acquire four hotels outright for Chatham, the relationship works very well for all parties and their shareholders.”

The joint venture will be a 90/10 joint venture between NorthStar and Chatham. Island Hospitality, which is 90% owned by Fisher, is expected to manage 38 of the 52 hotels. Marriott International will manage the other 14 hotels in the portfolio. Chatham will invest about $29 million for its 10%  interest in the joint venture.

The portfolio includes 52 upscale extended-stay and select-service hotels with 6,976 rooms. Sixty-three percent are affiliated with Marriott. Thirty-two percent are affiliated with Hilton. The hotels are located across 21 states, including Texas, New Jersey, New York and North Carolina.