San Diego Business Journal

Owner Refinances $80M in Loans on Hotels

Tuesday, February 12, 2013

Hotel investment firm Chatham Lodging Trust has refinanced approximately $80 million in mortgage loans on three of its properties, including Residence Inn San Diego Mission Valley.

A statement from Chatham, a Florida-based real estate investment trust, said the loan on the 192-room property, at 1865 Hotel Circle S., was among those assumed by the company with the acquisition of a five-hotel portfolio from Innkeepers USA Trust 18 months ago.

Also refinanced were a Residence Inn by Marriott in Tysons Corner, Va., and a Homewood Suites by Hilton in San Antonio. The three new 10-year loans, individually collateralized by the hotels, carry a fixed interest rate of approximately 4.6 percent, with principal and interest based on a 30-year amortization. The previous loans carried an average interest rate of approximately 6 percent, the statement said.

The publicly traded Chatham Lodging Trust owns 19 hotels in 11 states, and also holds a minority investment in a joint venture that owns 55 hotels. Its portfolio includes the 145-room Homewood Suites by Hilton Carlsbad.

— SDBJ Staff Report