PALM BEACH, FL—Chatham Lodging Trust has announced that the Chatham/Cerberus joint venture is offering for sale the 51-hotel, 6,847-room Innkeepers portfolio. Eastdil Secured is exclusive advisor for the offering.
The portfolio is being offered unencumbered by management contracts and has a $950 million interest-only loan in place with a floating interest rate of LIBOR + 4.8% that is assumable subject to certain conditions.
The portfolio benefits from $171 million in capital expenditures since 2007 or approximately $25,000 per room. In 2013, it has had an estimated RevPAR growth of 5.5%, a RevPAR penetration index of 129 and estimated EBITDA of approximately $101 million.
“Having owned or operated the portfolio for quite some time, we know these hotels very well, its results are very strong, and with industry experts projecting attractive growth in the future, we would expect the portfolio to continue to produce great results,” said Jeffrey H. Fisher, Chatham’s chief executive officer. “The joint venture has already returned 92% of our original capital investment, so if a sale occurs, the potential value that may accrue to Chatham because of our promote interest could be meaningful.”