PALM BEACH, FL—Chatham Lodging Trust, a hotel real estate investment trust (REIT) focused on investing in upscale, extended-stay hotels and premium-branded, select-service hotels, has completed the acquisition of the 105-room Residence Inn Fort Lauderdale Intracoastal/Il Lugano.
“This is a great addition to our portfolio, further enhances its quality and geographic distribution,” commented Dennis Craven, Chatham’s COO. “Given the current disconnect in public pricing of our common stock, we will use debt and other sources to fund acquisitions over the near term. Our balance sheet is in great shape and we are comfortable adding leverage, as well as potentially recycling capital out of existing assets into hotels in higher growth markets.”
The Residence Inn Fort Lauderdale Intracoastal/Il Lugano opened in 2008 as the Il Lugano Hotel and Residences and was converted to a Residence Inn in 2014. The 14-story building is located on the eastern edge of the Intracoastal Waterway at Oakland Park Blvd., and includes 105 oversized rooms ranging from 550 to more than 850 sq. ft., all with views of the Intracoastal Waterway and/or the Atlantic Ocean. Other hotel amenities include the Coastal View Restaurant, intracoastal waterfront meeting room, 177-space parking garage and waterfront deck with docks that can be expanded for added food and beverage operations. The building includes independently owned condominiums that are not a component of the hotel’s operations.
Chatham funded the Fort Lauderdale Intracoastal purchase with available cash and borrowings on its revolving credit facility. The hotel will be managed by Island Hospitality Management.