Chatham Lodging Buys 160-Key Spring Hill Suites in Savannah
- Dec 09, 2013
Marking its third acquisition this quarter, Chatham Lodging Trust has purchased SpringHill Suites by Marriott Savannah Downtown/Historic District. The REIT bought the 160-room hotel from its developer, North Point Hospitality Group, in an off-market transaction.
The six-story property at 150 Montgomery St. is a successful asset, and it shows in the numbers. RevPAR at the lodging destination increased approximately 6 percent year to date as of the close of the third quarter. And all signs appear to point to the asset’s ability to be a moneymaker over the long term.
“The Savannah hotel is less than five years old in an irreplaceable location with incredibly high barriers to new competition,” Dennis Craven, chief financial officer of Chatham, told Commercial Property Executive. “The city enjoys a great reputation for tourism, and with the expansion of its port facilities scheduled to open in 2015, we expect to see positive growth in the already strong business base.”
Chatham’s acquisition of SpringHill Suites Savannah, funded through cash on hand and borrowings under the company’s secured revolving credit facility, comes on the heels of two other purchases this fall. In October, the REIT snapped up the 231-room Residence Inn by Marriott Seattle Bellevue/Downtown in Bellevue, Wash., and the 180-room Hilton Garden Inn Denver Tech Center in Denver. And 2012 isn’t over yet.
“We have a strong appetite for acquisitions with a capacity to add up to $150-$200 million over the near term,” Craven added. “We are well along in negotiations, but are unable to predict with any reliable certainty when they might close.”