PALM BEACH, Fla.—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 three-year-old Courtyard by Marriott Houston Medical Center hotel in Houston, Texas for $34.75 million. The company funded the acquisition under its secured revolving credit facility.
The eight-story, 197-room hotel, including six suites, is adjacent to the world’s largest medical complex, the Texas Medical Center. More than 50 medical organizations, housed in 280 buildings comprising more than 45 million square feet of space on 1,300 acres, treat seven million-plus patients annually. The Texas Medical Center will continue its rampant growth as $7.1 billion of capital investment is planned through 2014.
“This is a beautiful, high quality hotel in Houston’s thriving Medical Center area which is forecast to be one of the nation’s top lodging markets in 2013,” said Jeffrey H. Fisher, Chatham’s chief executive officer. “This property matches up exactly with our strategy of acquiring premium–branded, upscale extended stay and select-service hotels in high demand markets that command high daily rates and revenue. The versatile hotel is perfectly suited for business, leisure and health-care segments. With our Hampton Inn Medical Center hotel right around the corner, we know the market very well and see significant opportunities to maximize revenue and cost efficiencies.”
The hotel, opened in February 2010, features Marriott’s new lobby concept, as well as three meeting rooms comprising approximately 2,000 square feet. Additional amenities include a Zen garden and multiple seating options inside and outside the building that allow guests to stay productive and relaxed. A well-appointed lobby theater area with media pods allow guests to watch personal 20-inch, flat-screen, high-definition televisions.
The hotel will be managed by Island Hospitality Management, a hotel management company 90 percent-owned by Fisher.
“We have invested more than $60 million in the last six weeks in two high quality, attractively-priced assets,” commented Peter Willis, chief investment officer. “Our relationships with other owners give us access to properties that others typically do not see. This property, for example, was purchased from an owner from whom we have acquired other top-quality hotels. We have an active pipeline aligned with our investment strategy, which allows us to be selective when making our final investment decisions.”