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.