On Wednesday, Chatham Lodging Trust announced that the company has acquired the 111-room Hilton Garden Inn Destin Miramar Beach, Fla., in an off-market transaction for $31 million, or approximately $279,000 per room.
- Chatham Lodging Trust is a hotel real estate investment trust (REIT) focused on investing in upscale, extended-stay hotels and premium-branded, select-service hotels.
Opened in 2020, the hotel is within walking distance to the beach and is well-situated in relation to the Santa Rosa Beach and Destin markets.
“We emerged from the pandemic with a stronger balance sheet, as well as the capacity to make accretive acquisitions in terms of both earnings and asset value,” highlighted Jeffrey H. Fisher, Chatham’s chief executive officer and president. “This hotel will generate strong cash flow from the outset, represent our third youngest hotel and generate a 2022 RevPAR premium of approximately 50 percent over our current portfolio.”
According to Fisher, this acquisition further diversifies Chatham’s portfolio by adding a predominantly leisure hotel and also expands their presence in the Sunbelt, which the company believes will continue to benefit from population growth.
“Three out of every four travelers to the Destin area come from the Sunbelt, and many of Destin’s feeder markets, such as Atlanta, Dallas, Nashville and Houston, are experiencing strong population growth,” he added.
The Hilton Garden Inn Destin Miramar Beach features 27 rooms with Gulf-view balconies, an expansive public space that includes a state-of-the-art meeting room and/or event space, a modern fitness center and a bar that offers over 60 different whiskies and other premium spirits.
“Although the hotel will primarily serve leisure travelers, the property sits across the street from the Silver Sands Outlet stores and benefits from corporate demand,” he added. “The Hilton Garden Inn also receives a strong amount of military demand related to Eglin Air Force Base. We are excited to add this great hotel to our portfolio, and we will continue to recycle capital out of older assets into newer hotels with higher growth prospects.”
The hotel will be managed by Island Hospitality Management, which is owned by Fisher.