Behind the Deal: Chatham Lodging's Residence Inn Buy

Chatham Lodging Trust offered some tantalizing details about its acquisition of the Residence Inn San Diego Downtown-Gaslamp District in a recent SEC filing. The firm, of course, acquired the 240-suite hotel for $90M, or $375k/room, a deal we first reported here. Now the hotel REIT is reporting other details on the transaction: Namely, that it paid a 7.5% cap rate for the hotel that's within walking distance of the San Diego Convention Center and Petco Park. It also used a kitty of $120.8M in proceeds generated from a 4 million share public offering to buy the Gaslamp hotel. And finally, as Chatham was “transitioning management,” the firm reports that RevPAR jumped 3.5%.

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