Chatham Lodging Trust acquires six Hilton-branded hotels for $92m

Chatham Lodging Trust has acquired a portfolio of six Hilton-branded hotels featuring 589 rooms for $92m, equating to astir $156,000 per room.

The properties comprise 2 Hampton Inn and Suites, 2 Home2 Suites, and 2 Homewood Suites by Hilton.

They are dispersed crossed Effingham (Illinois), Paducah (Kentucky), and Joplin (Missouri).

The locations were selected for their proximity to large transport routes and commercialized hubs. Over the past 18 months, Chatham sold six hotels with an mean property of 25 years for astir $100m. The recently acquired hotels person an mean property of 10 years.

Funding for this transaction came from disposable currency and borrowings connected Chatham’s revolving recognition facility.

Comparatively, the $92m portfolio posted gross per disposable country (RevPAR) of $116 and EBITDA margins of 42% successful 2025.

Chatham president and CEO Jeffrey Fisher said: “We are arrogant of the occupation we’ve done implicit the past fewer years repositioning the institution for growth. The operation of historically debased caller proviso growth, grounds amounts of caller investments successful technology, particularly with respect to AI, and reshoring manufacturing backmost into the US should effect successful strong, multi-year maturation for the lodging industry.

“Operationally, absorption disbursal pressures, peculiarly with respect to labour costs, are moderating. Furthermore, this accretive acquisition, which equates to an approximate 10% capitalisation complaint utilizing 2025 edifice nett operating income, volition supply further maturation successful escaped currency flow, giving america the assurance to boost our dividend by a steadfast 11% for 2026.”

The institution has besides announced an 11% summation successful its quarterly communal dividend to $0.10 per share.

Chatham’s committee of trustees has declared the quarterly communal arsenic good arsenic preferred dividends. The preferred dividend of $0.41406 per preferred stock and the communal dividend of $0.10 per stock volition beryllium paid connected 15 April 2026 to shareholders registered arsenic of 31 March 2026.

In August 2024, Chatham reported a nett income of $7.03m for Q2 2024, representing a 24.89% alteration from $9.36m successful the aforesaid play a twelvemonth earlier.

"Chatham Lodging Trust acquires six Hilton-branded hotels for $92m" was primitively created and published by Hotel Management Network, a GlobalData owned brand.

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