Chatham Lodging Acquires Hotel in Greater Charleston, S.C.
November 16 2017 - 6:45AM
Business Wire
Chatham Lodging Trust (NYSE:CLDT), a hotel real estate
investment trust (REIT) focused on investing in upscale,
extended-stay hotels and premium-branded, select-service hotels,
today announced that it has acquired the 96-room Courtyard by
Marriott Charleston Summerville, S.C., for $20.2 million, or
approximately $210,000 per room.
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Summerville S.C. Courtyard Hotel. (Photo:
Business Wire)
“This is a high-quality hotel located in Nexton, an emerging
mixed-use community that sits in the heart of a rapidly expanding
area just outside of Charleston,” said Jeffrey H. Fisher, Chatham’s
chief executive officer and president. “This hotel, as well as the
adjacent, under-construction, 96-room Residence Inn by Marriott
which we also have under contract to acquire upon opening in the
2018 second quarter, is well-located within the Nexton community.
Nexton is projected to encompass approximately 10,000 homes, eight
million commercial square feet and a medical campus over the next
decade.
“Volvo is constructing its first American factory, a
state-of-the-art, 2.3-million-square-foot facility on nearly 3,000
acres very close to Nexton that will employ approximately 2,000
people and is projected to manufacture 100,000 cars per year. Our
hotels will be the nicest and closest hotels to the new factory.
This is a thriving area with a lot of upside,” Fisher highlighted.
“Other major companies, such as Daimler and Boeing, have
significant facilities in the area and have acquired additional
land to expand their operations.”
Opened in October 2014, the Courtyard Charleston Summerville’s
quality and design far exceed prototype standards due to the strict
building requirements within the Nexton community and will need
essentially no additional capital for at least four years.
South Carolina has been one of the fastest growing states in the
country over the last five years due to the relocation of major
corporations, as well as corporate investment and expansion. The
state has one of the highest migration rates in the country for
in-bound, college graduates under the age of 40. South Carolina’s
2016 population growth was double the national average. In the
greater Charleston area, corporate demand is well-diversified with
the area home to companies within the aerospace, automotive,
bioscience, marine and distribution industries. Additionally, the
area is home to over 250 technology companies employing more than
11,000 employees which has helped to support the region’s new
nickname, “Silicon Harbor.”
“Most people think of Charleston as a purely leisure market, and
it has been ranked the top tourist town by Conde Nast for the past
five years,” commented Dennis Craven, Chatham’s chief operating
officer. “However, South Carolina, and more specifically the
greater Charleston area, already has experienced significant
economic expansion and is going to see much more in the future.
This hotel, as well as the acquisition of the under-construction
adjacent hotel next year, are expected to realize higher top-line
growth in the future tied to corporate demand.”
Chatham funded the purchase through available cash from its
recently completed 5,000,000 share offering that raised
approximately $109 million dollars. The hotel will be managed by
Island Hospitality Management, which is 51 percent owned by Fisher.
Chatham estimates it acquired the property at a year one net
operating income capitalization rate of approximately eight
percent.
About Chatham Lodging Trust
Chatham Lodging Trust is a self-advised, publicly-traded real
estate investment trust focused primarily on investing in upscale
extended-stay hotels and premium-branded, select-service hotels.
The company owns interests in 135 hotels totaling 18,437
rooms/suites, comprised of 40 properties it wholly owns with an
aggregate of 5,939 rooms/suites in 16 states and the District of
Columbia and a minority investment in two joint ventures that own
95 hotels with an aggregate of 12,498 rooms/suites. Additional
information about Chatham may be found at www.chathamlodgingtrust.com.
This press release may contain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995 about Chatham Lodging Trust, including statements regarding
future plans, strategies, performance, acquisitions, capital
expenditures, future operating results and the timing and
composition of revenues, among others, and statements containing
words such as “expects,” “believes” or “will,” which indicate that
those statements are forward-looking. Except for historical
information, the matters discussed in this press release are
forward-looking statements that are subject to certain risks and
uncertainties that could cause the actual results or performance to
differ materially from those discussed in such statements.
Additional risks are discussed in the company’s filings with the
Securities and Exchange Commission.
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Chatham Lodging TrustDennis Craven, 561-227-1386Chief Operating
Officer
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