Palm Beach-based Chatham Lodging Trust has closed on the purchase of five Innkeepers hotels in California, Vermont, Texas and Washingon for $195 million, GlobeSt.com reported, paying about $255,000 per room for 764 rooms in the portfolio.
The five hotels will continue to be managed by Island Hospitality Management, a hotel management company 90 percent owned by Jeff Fisher, Chatham’s president and CEO.
“When you know these assets as well as we do–having owned these hotels in our prior life at Innkeepers — and since Jeff’s management company, Island Hospitality or its predecessor Innkeeepers Hospitality, has managed these hotels for a long time, it is much better to buy those assets than the unknown,” Dennis Craven, CFO of Chatham, told GlobeSt.com.
Chatham financed the purchase through the assumption of five individual mortgage loans, secured by the hotels, totaling $134.2 million, with a weighted average interest rate of 6 percent. [GlobeSt.com]