US: Chatham Lodging Trust REIT that invests in extended-stay and select-service hotels, has announced the sale of its 10.3 per cent interest in the Innkeepers joint venture with Colony Capital.
Jeffrey H. Fisher, Chatham’s president and CEO, said: “This sale culminates a very successful joint venture investment for Chatham since we partnered with Cerberus to buy the Innkeepers portfolio out of bankruptcy in 2011. Originally investing $37 million for our interest, this has proven to be a very profitable investment for Chatham and our shareholders. Alongside Cerberus, our investment returned profit of approximately $80 million by the time Cerberus sold its interest to Northstar Realty Finance (which ultimately merged with Colony) in 2014. Since then, we received distributions of $22.2 million, bringing total returns to over $100 million.”
Innkeepers USA Trust owned 73 extended stay hotels across the US when it filed for bankruptcy. Chatham Lodging Trust bought five if the properties out right at the time, as well as investing in the Cerberus JV.
