Chatham Lodging Trust Acquires 589-Room Hilton Portfolio for $92M
Chatham Lodging Trust acquired six Hilton-branded hotels totaling 589 rooms across Illinois, Kentucky and Missouri for $92 million, or roughly $156,000 per room. The assets posted 2025 RevPAR of $116 and 42% EBITDA margins and support an 11% dividend increase to $0.10 per share.
1. Acquisition Details
Chatham Lodging Trust purchased six Hilton-branded properties comprising 589 rooms—two Hampton Inn & Suites, two Home2 Suites and two Homewood Suites—located in Effingham, Illinois; Paducah, Kentucky; and Joplin, Missouri for $92 million, or approximately $156,000 per room.
2. Performance Metrics
The newly acquired hotels delivered a 2025 revenue per available room of $116 and achieved 42% EBITDA margins, reflecting an approximate 10% capitalization rate based on net operating income and an average property age of ten years versus the 25-year average of recently sold assets.
3. Financing and Dividend
The transaction was funded through available cash and borrowings under the revolving credit facility and is expected to boost free cash flow, supporting an 11% increase in the quarterly common dividend to $0.10 per share payable April 15, 2026 to holders of record March 31, 2026.