Chatham Lodging Announces Sale of Its Innkeepers Joint Venture Interest

Rhea-AI Summary

Chatham Lodging Trust (NYSE: CLDT) announced the sale of its 10.3% stake in the Innkeepers joint venture to Colony Capital for $2.8 million. This transaction concludes a profitable partnership that began in 2011, with Chatham originally investing $37 million. The overall return on investment from this venture exceeds $100 million, including $22.2 million in distributions received. Chatham operates properties primarily in the upscale, extended-stay hotel sector, managing 39 properties across 15 states and D.C.

Positive

• Total returns from Innkeepers investment exceed $100 million.
• Received $22.2 million in distributions since 2014.
• Successful exit from a long-term investment with Colony Capital.

Negative

• None.

Chatham Lodging Trust (NYSE: CLDT), a lodging real estate investment trust (REIT) that invests in upscale, extended-stay hotels and premium-branded, select-service hotels, announced the sale of its 10.3 percent interest in the Innkeepers joint venture with Colony Capital for $2.8 million.

“This sale culminates a very successful joint venture investment for Chatham since we partnered with Cerberus to buy the Innkeepers portfolio out of bankruptcy in 2011,” highlighted Jeffrey H. Fisher, Chatham’s president and chief executive officer. “Originally investing $37 million for our interest, this has proven to be a very profitable investment for Chatham and our shareholders. Alongside Cerberus, our investment returned profit of approximately $80 million by the time Cerberus sold its interest to Northstar Realty Finance (which ultimately merged with Colony) in 2014. Since then, we received distributions of $22.2 million, bringing total returns to over $100 million.”

About Chatham Lodging Trust

Chatham Lodging Trust is a self-advised, publicly-traded real estate investment trust focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns interests in 39 properties with an aggregate of 5,900 rooms/suites in 15 states and the District of Columbia. Additional information about Chatham may be found at chathamlodgingtrust.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210325005936/en/

FAQ

What was the recent sale announced by Chatham Lodging Trust (CLDT)?

Chatham Lodging Trust announced the sale of its 10.3% interest in the Innkeepers joint venture for $2.8 million.

How much did Chatham invest in the Innkeepers joint venture originally?

Chatham originally invested $37 million in the Innkeepers joint venture.

What were the total returns from the Innkeepers joint venture for CLDT?

The total returns from the Innkeepers investment exceed $100 million.

When did Chatham Lodging Trust enter the Innkeepers joint venture?

Chatham Lodging Trust partnered in the Innkeepers joint venture in 2011.