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US: Real estate investment trust Chatham Lodging has bought six Hilton hotels, including four extended stay properties, totalling 589 keys for $92 million.
The $92 million acquisition cost works out to around $156,000 per room.
The portfolio consists of two Hampton Inn and Suites, two Home2 Suites, and two Homewood Suites by Hilton. The properties are located in Effingham, Illinois; Paducah, Kentucky; and Joplin, Missouri.
“We are proud of the job we’ve done over the past few years repositioning the company for growth,” said Jeffrey Fisher, president and CEO of Chatham Lodging Trust. “The combination of historically low new supply growth, record amounts of new investments in technology, especially with respect to AI, and reshoring manufacturing back into the US should result in strong, multi-year growth for the lodging industry.”
He continued: “Operationally, management expense pressures, particularly with respect to labour costs, are moderating. Furthermore, this accretive acquisition, which equates to an approximate 10 per cent capitalisation rate using 2025 hotel net operating income, will provide further growth in free cash flow, giving us the confidence to boost our dividend by a healthy 11 per cent for 2026.”
Highlights:
- Chatham Lodging Trust has acquired six Hilton-branded hotels, including four extended stay properties, totalling 589 rooms for $92 million, equating to approximately $156,000 per key.
- The portfolio consists of two Hampton Inn and Suites, two Home2 Suites and two Homewood Suites by Hilton.
- Properties are located in Effingham (Illinois), Paducah (Kentucky) and Joplin (Missouri).
- Chatham president and chief executive Jeffrey Fisher cited low new supply growth, AI technology investment and reshoring manufacturing as factors supporting multi-year lodging industry growth.
- Fisher stated the acquisition provides an approximate 10 per cent capitalisation rate based on 2025 net operating income and supports an 11 per cent dividend increase for 2026.
