Chatham Lodging Trust, a hotel real estate investment trust (REIT), has acquired the recently opened Home2 Suites by Hilton Phoenix Downtown in Arizona, US, for $43.3m.
This is projected to generate revenue per available room (RevPAR) of more than $150 upon stabilisation and an estimated net operating income (NOI) yield of over 9%.
The purchase was funded using proceeds from the sale of the Denver Tech hotel earlier in the first quarter, supplemented by available cash.
Home2 Suites by Hilton Phoenix Downtown will be managed by Island Hospitality Management, a company owned by Chatham Lodging Trust CEO Jeffrey H Fisher.
Fisher said: “This is Chatham’s first acquisition in more than two years and fits our long-term growth strategy to acquire younger, premium-branded, high-quality hotels in infill locations with diverse demand generators.
“The hotel further diversifies our portfolio by adding an underrepresented geographic area and increases our exposure to segments of travellers other than purely business transient.”
The six-storey hotel incorporates the Fuller Paint Company Building, which now contains the hotel's customised public spaces, including a food and beverage outlet.
This pet-friendly property offers 148 rooms and a range of amenities, including a business centre, swimming pool, fitness centre, lobby bar, and spa.
Earlier this year, Chatham Lodging Trust closed the $18m sale of the 180-room Hilton Garden Inn Denver Tech Centre.
Chatham Lodging Trust owns 39 hotels, encompassing 5,883 rooms and suites, spread across 17 states and the District of Columbia.
