West Palm Beach, Fla., Dec 24 — Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) focused on investing in upscale, extended-stay hotels and premium-branded, select-service hotels, today announced the closing of the sale of the 27-year-old, 147-suite Homewood Suites by Hilton Billerica, Ma., for $17.4 million. An approximate $6 million renovation of the hotel was planned for 2025 but was not completed due to the pending sale. The hotel was projected to have the third lowest RevPAR in the portfolio and earn approximately $1 million of net operating income in 2025, thus equating to a capitalization rate of approximately 4 percent.
This sale marks the sixth hotel sold since December 2024, generating proceeds of approximately $100 million. Including near-term capital expenditures, the aggregate price equates to an approximate six percent capitalization rate.