Seeking Alpha

Chatham closes big hotel acquisition with NorthStar as partner

The previously announced deal for a 51-hotel, 6,848 room portfolio from a JV comprised of Cerberus Capital and Chatham had a combined purchase price of $1.3B, prior to a capital expenditure reserve credit to the buyer of $39.7M.

47 of the 51 hotels were purchased by a JV between Chatham Lodging (CLDT) and NorthStar Realty Finance (NRF +0.6%).

Also part of the seller's group, Chatham experienced a non-GAAP economic gain of about $80M, or more than $3 per share. Chatham expects to recognize $54M of this in Q2.

A conference call is planned for June 17 at 10 ET.

Source: Press release

Comments (2)
  • Pablomike
    , contributor
    Comments (3210) | Send Message
    Isn't this the same portfolio of hotels that AINV paid like $4B for and almost went under??
    11 Jun 2014, 12:18 PM Reply Like
  • ChrisForte
    , contributor
    Comments (151) | Send Message
    I wish someone could explain this in plain english...
    11 Jun 2014, 01:03 PM Reply Like
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