Chatham Buys Residence Inn in GasLamp District
Mystery solved. Us meddling kids finally discovered the answer to our originally reported mystery as to what hotel Chatham Lodging Trust was buying. The firm announced today that it's acquiring the Residence Inn San Diego Downtown in the Gaslamp Quarter. The 240-room full-service hotel is being picked up for $90M, or $375k/room.
Chatham CEO Jeffrey Fisher says the Residence Inn was a key buy in San Diego, "just a block away from the San Diego Convention Center, one of the most popular convention markets in the country given San Diego's beautiful year-round climate." Including the income stream from the restaurant rents, the purchase price puts the buy at a 7.6% cap rate, the company reports. The purchase was funded by Chatham's recent $120M share offering, and will be managed by Island Hospitality Management (51% owned by Jeffrey).
