Chatham lodging trust acquires six Hilton hotels for US$92M in strategic portfolio upgrade

USA – Chatham Lodging Trust has acquired six Hilton-branded hotels comprising 589 rooms for US$92 million, representing approximately US$156,000 per room, in a strategic acquisition that upgrades the portfolio quality.

The portfolio includes two Homewood Suites, two Hampton Inn and Suites and two Home2 Suites by Hilton properties. Chatham funded the acquisition using available cash and borrowings on its revolving credit facility.

“This very strategic acquisition truly complements our existing portfolio for multiple reasons,” said Jeffrey Fisher, Chairman and CEO.

“First, the hotels are generally the highest quality properties in their respective markets with the average age of the portfolio only 10 years. Second, 66 percent of the portfolio’s rooms are extended-stay, an exact match to our existing portfolio, more than double our nearest peer, and as everyone knows, is our preferred segment,” he added.

For Chatham, the extended-stay emphasis proves significant, and the portfolio’s 66 percent extended-stay concentration aligns precisely with Chatham’s existing composition.

Additionally, the transaction highlights Chatham’s successful capital recycling initiative over the past 18 months.

During this period, REIT sold six hotels for approximately US$100 million, properties averaging 25 years in age with Revenue Per Available Room of US$101 and hotel EBITDA margins of 27%.

In comparison, the newly acquired portfolio averages 10 years in age, generated RevPAR of US$116 and delivered hotel EBITDA margins of 42% in 2025. The spread demonstrates how strategic disposition of older assets and reinvestment into newer properties can enhance portfolio performance and shareholder returns.

For hospitality operators and investors, Chatham’s strategy offers valuable lessons. The focus on younger assets, extended-stay concentration and disciplined capital allocation provides a blueprint for maximizing returns in competitive markets.

In addition, properties in regions benefiting from infrastructure and manufacturing investments often demonstrate greater resilience during economic fluctuations.

“We are enthusiastic about our future,” Jeffrey said, signaling confidence in the portfolio’s positioning despite broader economic uncertainties.

The transaction demonstrates how strategic recycling of capital from aging assets into newer, higher-margin properties can create sustained value while maintaining focus on operational segments with predictable performance characteristics.

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