Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust focused on upscale extended-stay hotels as well as select-service hotels, has completed the acquisition of the 145-suite Homewood Suites by Hilton in suburban San Diego for approximately $32 million. The acquisition was funded with financing under Chatham’s secured revolving credit facility. Palm Beach, Fla.-based Chatham has now acquired 13 hotels since its initial public offering (IPO) on April 21.
"This is Chatham’s first acquisition in California, a market we know very well and where we have extensive experience," said Chatham CEO Jeffrey Fisher in a press release. "We continue to seek other West Coast properties and have an active acquisition pipeline of premium-branded upscale extended-stay and select-service hotels in areas with high barriers to entry."
Located at 2223 Palomar Airport Road in Carlsbad, Calif., 35 miles north of downtown San Diego, the three-story Homewood Suites opened in 2008. The hotel features 145 suites with fully equipped kitchens and complimentary high speed Internet access. The hotel is convenient to the many leisure activities in the surrounding San Diego area, especially Legoland, as well as many commercial demand generators and the McClellan-Palomar Airport.
"Carlsbad, Calif., is considered the golf equipment capital of the United States and quite possibly the world," Fisher noted. "As the epicenter of the golf industry, more than 15 golf companies reside within a 50-mile stretch, including Acushnet, Callaway and TaylorMade."
Island Hospitality Management, a hotel management company that is 90% owned by Fisher, will manage the hotel.
Chatham’s stock price closed at $18.22 on Tuesday, Nov. 3, down from $19.84 on April 21, the date of the IPO