San Diego Business Journal

Hotel Circle Property Part of Florida REIT's Big Buy

Monday, July 18, 2011

Florida-based Chatham Lodging Trust, a hotel real estate investment trust, has acquired five U.S. hotels for a total of $195 million, including the 192-room Residence Inn by Marriott San Diego in Mission Valley. The hotel is at 1865 Hotel Circle South.

The purchase is the second made recently in San Diego County by Chatham, which last fall acquired the 145-room Homewood Suites by Hilton in Carlsbad for $32 million.

A July 14 statement by Chatham said the five hotels, totaling 764 rooms, are properties acquired from Innkeepers USA Trust, another Florida-based REIT. The others are Residence Inn properties in Garden Grove and Tysons Corner, Va.; a Doubletree by Hilton in Washington, D.C.; and a Homewood Suites in San Antonio.

“These top-tier branded hotels give us a strong presence in some of the country’s prime hotel markets,” said Jeffrey H. Fisher, Chatham’s chief executive officer and president. Fisher said four of the five hotels have recently been renovated.

Chatham funded the acquisition through the assumption of five individual mortgage loans, secured by the hotels, totaling $134.2 million, as well as available cash and borrowings under its senior secured revolving credit facility.

The acquired hotels will continue to be managed by Island Hospitality Management, which is 90 percent owned by Fisher, the statement said.

— Lou Hirsh