Chatham Lodging Trust Acquires Home2 Suites Phoenix Downtown Caribbean News Global

Chatham Lodging Trust acquires Home2 Suites by Hilton in downtown Phoenix, adding exposure to the booming Phoenix market.

Chatham Lodging Trust, a hotel real estate investment trust (REIT) specializing in upscale, extended-stay hotels and premium-branded, select-service hotels, has recently acquired the Home2 Suites by Hilton Phoenix Downtown for $43.3 million. This newly opened, 148-room hotel is located in the heart of Downtown Phoenix and includes the historic Fuller Paint Company Building, which houses unique public spaces and a signature food & beverage outlet. The acquisition is expected to produce a RevPAR exceeding $150 and generate a NOI yield of over 9 percent once stabilized.

Downtown Phoenix is a bustling area with diverse demand for hotels, driven by its urban core and attractions such as the Footprint Center, Chase Field, and the Convention Center. With 11.5 million square feet of office space, a growing Bioscience Core, retail spaces, museums, theatres, and expanding campuses for universities, Downtown Phoenix offers a vibrant and dynamic environment for travelers.

Chatham Lodging Trust's CEO and president, Jeffrey H. Fisher, expressed excitement about the acquisition, highlighting Phoenix's population growth, talent attraction, and real estate investment potential. The hotel is strategically located near major sports venues, entertainment centers, and the Convention Center, making it an attractive destination for both business and leisure travelers.

This acquisition aligns with Chatham's long-term growth strategy of acquiring premium-branded hotels in strategic locations with diverse demand generators. By selling the Denver Tech hotel and reinvesting in the Home2 Suites in Phoenix, Chatham aims to enhance its portfolio, increase RevPAR, and deliver value to shareholders.

Managed by Island Hospitality Management, the Home2 Suites by Hilton Phoenix Downtown is a valuable addition to Chatham's portfolio, offering a unique opportunity to capitalize on Phoenix's thriving lodging market and diverse visitor base. With a focus on upscale, extended-stay hotels and premium-branded, select-service hotels, Chatham continues to expand its presence in key markets across the United States.

Overall, this acquisition marks a significant milestone for Chatham Lodging Trust, positioning the company for continued growth and success in the dynamic hospitality industry. With a strategic focus on high-quality assets and strategic locations, Chatham remains committed to delivering value to its investors and stakeholders.

Share With Others