Chatham Lodging Trust (NYSE:CLDT), a real estate investment trust (REIT) focused on upscale extended-stay and select-service hotels, announced a major strategic expansion on Wednesday.
The company acquired six hotels totaling 589 rooms for $92 million, or approximately $156,000 per room.
The acquisition features a portfolio of Hilton-branded properties, including two Homewood Suites, two Hampton Inn & Suites, and two Home2 Suites by Hilton.
These hotels are located in high-growth industrial and distribution hubs in Joplin, Mo., Effingham, Ill., and Paducah, Ky.
The transaction is the culmination of an 18-month "recycling" initiative where Chatham sold six older, lower-margin properties for approximately $100 million.
By reinvesting those proceeds into this new portfolio, the company has significantly modernized its holdings.
Reflecting strong operational performance, the Board of Trustees declared a quarterly common dividend of $0.10 per share, an 11% increase.
This marks the second consecutive year of double-digit dividend growth for the REIT.