Chatham Lodging Acquires Residence Inn in Bellevue, WA
Friday November 1st, 2013 - 11:16AM HE
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PALM BEACH, FL—Chatham Lodging Trust has acquired the 231-room Residence Inn by Marriott Seattle Bellevue/Downtown for a net cash purchase price of $71.8 million, plus customary, pro-rated amounts and closing costs.
The purchase price represents a forward 12 month capitalization rate of approximately 7.8% on the hotel’s projected net operating income. Year to date through September 30, 2013, RevPAR at the Bellevue hotel is up 13% to $131.
Jeffrey H. Fisher, Chatham’s CEO, said in a statement, “This hotel aligns perfectly with our strategy of acquiring coastal area hotels where demand is driven primarily by corporate travelers focused in the ever-growing technology, energy or medical sectors.”
The hotel opened in 2008 and is situated along Interstate 405, providing access to businesses such as Microsoft, Amazon, Expedia, T-Mobile and AT&T.
The hotel occupies an approximately seven-acre site and features a lobby with contemporary décor and custom furniture and artwork. Facilities include 3,076 sq. ft. of meeting space in three rooms, an indoor, heated swimming pool, a fitness center, three levels of covered and secured parking, Starbuck’s Café and a Microsoft game room.
The Residence Inn by Marriott Seattle Bellevue/Downtown is managed by Island Hospitality Management (IHM), which is 90% owned by Fisher.
Chatham funded the purchase with available cash and borrowings on its secured revolving credit facility of $59 million.
Tags: Chatham Lodging Trust • Marriott • Residence Inn • Bellevue • Seattle • Hospitality • Acquisitions • Ownership •
When you hear all the lodging industry projections for the months and years to come, much of the robust growth is forecast to be the result of the expected influx of travelers from China. In what could only be seen as good news for the industry, that expectation moved a little closer to reality when President Obama signed a visa waiver extension for Chinese travelers earlier this month.