PORTLAND, Maine—Chatham Lodging Trust, a hotel real estate investment trust (REIT) focused on upscale extended-stay hotels and premium branded select-service hotels, announced that it has acquired the recently opened Hampton Inn Portland Downtown – Waterfront Hotel in Portland, Maine for $28 million. The purchase price includes an adjacent land parcel which can be sold or used for future development of a hotel, office, retail, or residential units. The company funded the acquisition with borrowings under its secured revolving credit facility.
“This is a tremendous asset in the heart of a downtown New England market that fits in exactly with our strategy of acquiring premium branded, upscale extended-stay and select-service hotels in high demand markets,” said Jeffrey H. Fisher, Chatham’s chief executive officer. “The hotel is great for leisure travelers due to its location, and with its high quality Hampton brand affiliation, maintains a strong business traveler presence throughout the year. The hotel is performing strongly and continues to ramp up.”
The recently constructed 122-room hotel opened in August 2011. The ground floor of the hotel includes the separately-owned and operated Sebago Brewing Company. The hotel will be managed by Island Hospitality Management, a hotel management company 90 percent-owned by Fisher.
“We were able to source this deal privately and directly without the involvement of any third parties,” commented Peter Willis, chief investment officer. “Our network of contacts is extensive and we have an active pipeline.”