Chatham Lodging Acquires SpringHill Suites in Savannah for $39M
Friday December 6th, 2013 - 10:02AM 0EBA
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SAVANNAH, GA—Chatham Lodging Trust has acquired the 160-room SpringHill Suites by Marriott Savannah Downtown/Historic District for $39.8 million, plus customary acquisition and closing costs.
Chatham funded the purchase with available cash and borrowings on its secured revolving credit facility. Following the acquisition, the company's leverage ratio is 37 percent, calculated as net best to hotel investment at cost. Chatham currently has the capacity to make incremental acquisitions in the range of $150-$200 million on its balance sheet.
“Despite the current competitive transaction climate in the lodging industry, we continue to source high quality acquisitions in off-market transactions through our extensive industry relationships,” stated Jeffrey H. Fisher, Chatham’s CEO. “This hotel matches our strategy perfectly with its infill location, recent construction in 2009, high barriers to new competition and strong, growing demand.”
The hotel was constructed under the guidelines of the Historic District’s Preservation Plan and the Savannah Metropolitan Planning Commission. The property is situated within a short walking distance of Savannah’s City Market and River Street within the Historic District. The property sits directly across the street from the Savannah Civic Center and is close to the Savannah College of Art and Design.
The 160-suite hotel features solid concrete construction, an underground parking garage and a brick/stucco exterior. The units feature separate living and sleeping areas. Amenities at the hotel include a heated outdoor pool, fitness center, 2,645 sq. ft. of meeting space and valet parking.
Tags: Marriott Savannah Downtown/Historic District • acquisition • Hospitality • Amenities • Brands • Acquisitions • Personnel •
For the past few years, the talk of The Lodging Conference in Phoenix had been focused on the economic recovery, solid industry projections and “cautious optimism.” With the word cautious no longer necessary, the economic outlook took a backseat this year to the seemingly unending parade of new lifestyle brands.