The 219-suite Embassy Suites by Hilton in Springfield, Virginia has been sold for $68 million to Chatham Lodging Trust. The South Florida hotel REIT paid just over $310,500 per room key for the property located at 8100 Loisdale Rd. Opened in August 2013, the LEED-certified hotel features features 26 additional extended-stay suites with full kitchens. Chatham funded the purchase through available cash from its recently completed 5 million share offering that raised approximately $109 million. Chatham estimates it acquired the property at a year one net operating income capitalization rate of approximately 7.5 percent. The hotel will be managed by Island Hospitality Management.
“This is a superior-quality hotel that has been ranked the top hotel within the Embassy Suites brand each of the last two years,” said Jeffrey H. Fisher, Chatham’s chief executive officer and president. “Acquired in an off-market transaction, the Embassy Suites by Hilton Springfield has the best location among its competition with superior access to the primary demand generators in a market where new development is difficult and little new supply is on the horizon. It generates an approximate 10 percent RevPAR premium to our existing properties while lowering our portfolio’s average age and needs no capex for several years.”
