PALM BEACH, FL—Locally-based Chatham LodgingTrust and NorthStar Realty Finance Corp.of New York City report the closing of their previously announced deal to purchasea 52-hotel, 6,976-room portfolio from InlandAmerican.


NorthStar owns a 90% ownership interest in the joint venture,and Chatham owns a 10% interest. Chatham acquired its 10% equityinterest in the joint venture for approximately $28 million. Thetransaction breaks down to the Northstar-Chatham joint ventureacquiring 48 upscale extended-stay hotels and premium-branded,select-service hotels from Inland and Chatham purchasing fourhotels as part of the sale of the 52-hotel portfolio for a purchaseprice of $106.7 million, or approximately $186,000 per room, beforedeal costs. The four hotels purchased by Chatham are: the 179-roomHilton Garden Inn Burlington,Burlington, MA; the 176-room Courtyard by MarriottDallas (Addison), TX; the 120-room Residence Innby Marriott Houston West University Houston, TX; and the100-room Courtyard by Marriott Houston WestUniversity, Houston, TX.


“These top-tier branded hotels expand our presence in some ofthe country's best hotel markets and match our strategy oftargeting specific high growth markets based on growing corporatedemand tied to the technology, medical and oil and gas industries,”says Jeffrey H. Fisher, Chatham's chief executiveofficer and president. “Given our confidence in the health of thehotel industry, we will continue to be net buyers of high-qualityhotels.”


Chatham financed the investments with available cash andborrowings under its revolving credit facility of $69 million. Inlate September, Chatham issued 6.9 million common shares,generating net proceeds of approximately $144.6 million, which wasused at the time to repay any borrowings outstanding on itsrevolving credit facility.


All four of the Chatham wholly-owned hotels and 34 of the 48hotels owned by the joint venture will be managed by IslandHospitality Management, a hotel management company thatcurrently is 90% owned by Fisher.

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John Jordan

John Jordan is a veteran journalist with 36 years of print and digital media experience.