Upon completion of the acquisition, the Pittsburgh Hyatt Place will be managed by Island Hospitality Management, or IHM, which is 90% owned by Jeffrey H. Fisher, Chatham’s Chairman, President and Chief Executive Officer.
PALM BEACH, FLA. – Chatham Lodging Trust, a hotel real estate investment trust (REIT) focused on investing in upscale extended-stay hotels and premium branded select-service hotels, announced that it has entered into an agreement to purchase the 178-room Hyatt Place Pittsburgh/North Shore in Pittsburgh, Pennsylvania for a cash purchase price of $40 million, plus customary pro-rated amounts and closing costs.
The Pittsburgh Hyatt Place opened in December 2010 and is located in Pittsburgh’s North Shore neighborhood, next door to PNC Park (home of the Pittsburgh Pirates) and near such attractions as Heinz Field (home of the Pittsburgh Steelers), the Andy Warhol Museum, the Carnegie Science Center and the National Aviary. The Pittsburgh Hyatt Place is also proximate to Fortune 500 employers such as Alcoa, Del Monte Foods, PNC Financial, U.S. Steel and Heinz.
Upon completion of the acquisition, the Pittsburgh Hyatt Place will be managed by Island Hospitality Management, or IHM, which is 90% owned by Jeffrey H. Fisher, Chatham’s Chairman, President and Chief Executive Officer. Chatham expects that the acquisition of the Pittsburgh Hyatt Place will close by June 17, 2013. However, because the acquisition remains subject to customary closing requirements and conditions, Chatham can give no assurance that the acquisition will be consummated during that time period or at all. Chatham intends to fund the purchase with borrowings on its secured revolving credit facility and property specific debt. Chatham will update its guidance to reflect the Pittsburgh Hyatt Place acquisition in conjunction with its second quarter 2013 earnings announcement.
Additionally, Chatham announced that it anticipates its 2013 second quarter revenue per available room, or RevPAR, will be further impacted by renovations in connection with the Company’s rebranding of the former Doubletree Guest Suites hotel in Washington D.C. to a Residence Inn by Marriott, which Chatham expects to complete in the third quarter of 2013. Although its consolidated financial statements for the three months ended June 30, 2013 are not yet complete, Chatham currently anticipates reporting RevPAR and RevPAR growth over the second quarter 2012 as follows:
- RevPAR: $114-$115
- RevPAR growth, excluding the Washington D.C. hotel: 4.5-5.0%
- RevPAR growth: +2-3%
The company has estimated its anticipated RevPAR for the second quarter 2013 and RevPAR growth over the second quarter 2012 in good faith based on its internal reporting of its results to date. The company can provide no assurance that, upon completion of the quarter and completion of the accounting and financial reporting processes and finalizing the financial statements as of and for the three months ended June 30, 2013, the company will not report RevPAR for the second quarter 2013 materially different than as set forth above
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
