Chatham Lodging Trust has acquired a portfolio of six Hilton-branded hotels featuring 589 rooms for $92m, equating to approximately $156,000 per room.
The properties comprise two Hampton Inn and Suites, two Home2 Suites, and two Homewood Suites by Hilton.
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They are spread across Effingham (Illinois), Paducah (Kentucky), and Joplin (Missouri).
The locations were selected for their proximity to major transport routes and commercial hubs. Over the last 18 months, Chatham sold six hotels with an average age of 25 years for around $100m. The newly acquired hotels have an average age of ten years.
Funding for this transaction came from available cash and borrowings on Chatham’s revolving credit facility.
Comparatively, the $92m portfolio posted revenue per available room (RevPAR) of $116 and EBITDA margins of 42% in 2025.
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By GlobalDataChatham president and CEO Jeffrey Fisher said: “We are proud of the job we’ve done over the past few years repositioning the company for growth. The combination of historically low new supply growth, record amounts of new investments in technology, especially with respect to AI, and reshoring manufacturing back into the US should result in strong, multi-year growth for the lodging industry.
“Operationally, management expense pressures, particularly with respect to labour costs, are moderating. Furthermore, this accretive acquisition, which equates to an approximate 10% capitalisation rate using 2025 hotel net operating income, will provide further growth in free cash flow, giving us the confidence to boost our dividend by a healthy 11% for 2026.”
The company has also announced an 11% increase in its quarterly common dividend to $0.10 per share.
Chatham’s board of trustees has declared the quarterly common as well as preferred dividends. The preferred dividend of $0.41406 per preferred share and the common dividend of $0.10 per share will be paid on 15 April 2026 to shareholders registered as of 31 March 2026.
In August 2024, Chatham reported a net income of $7.03m for Q2 2024, representing a 24.89% decrease from $9.36m in the same period a year earlier.
