CLDT · Chatham Lodging Trust

Chatham Lodging Trust completed the acquisition of a six-hotel portfolio (the "Midwest Hotel Portfolio") for $92.0 million on March 3, 2026. The portfolio consists of 589 rooms across three Hilton brands: Hampton Inn & Suites, Home2 Suites by Hilton, and Homewood Suites by Hilton, located in Missouri, Illinois, and Kentucky. The acquisition was funded using available cash and $90.0 million drawn on Chatham's unsecured revolving credit facility, which carried a variable interest rate of 5.74% at December 31, 2025. The audited combined financial statements of the acquired entities (Effingham Hospitality Partners LLC, et al.) for the year ended December 31, 2025 show total revenue of $25.3 million, operating income of $7.0 million, and net income of $5.8 million. Pro forma financial statements indicate that, had the acquisition occurred on January 1, 2025, Chatham's total revenue would have been $320.4 million and net income attributable to common shareholders would have been $7.3 million. The purchase price allocation is preliminary, with $92.5 million allocated to hotel properties (land, buildings, and FF&E). Management fees for the portfolio were reduced from 6% to 3% under the new management agreement with Island Hospitality Management, LLC. The acquisition is expected to be accretive to Chatham's portfolio and is part of its strategy to expand in the Midwest region.