Chatham Lodging Trust and NorthStar Realty Finance on Thursday said they have entered into a definitive agreement to acquire a US$1.1 billion hotel portfolio with 52 upscale extended-stay and select-service hotels from Inland American Real Estate Trust. The JV will be a 90/10 joint venture with Chatham investing approximately US$29 million for its 10% interest in the 7,000 room portfolio.
Island Hospitality, which is 90% owned by Chatham President and CEO Jeffrey Fisher, is expected to manage 38 of the 52 hotels (predominantly Marriotts and Hiltons), and Marriott International will manage the remaining 14 hotels in the portfolio.
Concurrently, Chatham is negotiating with NorthStar to acquire four hotels comprising 575 rooms out of the portfolio prior to or in connection with the closing set for Q4 2014.
Chatham also announced on Thursday that it has acquired the recently reopened 194-room Hyatt Place Denver/Cherry Creek for US$32 million, or approximately US$165,000 per key.
NorthStar said after this deal closes it will have an approximately US$3.2 billion hotel portfolio consisting of 159 hotels and over 20,000 rooms.