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  • Writer's pictureRealFacts Editorial Team

Chatham Lodging Trust Invests $43M in Phoenix’s Home2 Suites by Hilton

Building under construction in Phoenix

Chatham Lodging Trust, a hotel real estate investment trust (REIT) based in Florida, has expanded its holdings by purchasing the newly opened Home2 Suites by Hilton Phoenix Downtown, according to Jenna Walters from Hotel Dive. This 148-room extended-stay hotel was acquired for $43.3 million, equating to about $293,000 per room.

This acquisition is Chatham’s first in over two years. CEO Jeffrey Fisher highlighted that the purchase was funded by the sale of their Denver Tech Center hotel earlier this year for $24 million. Fisher stated that this move aligns with the trust’s strategy to invest in modern, high-quality hotels located in vibrant areas with diverse visitor profiles.

Fisher expects the Home2 Suites in Phoenix to significantly boost Chatham’s revenue per available room (RevPAR) and operating margins, anticipating a stabilized RevPAR exceeding $150 and a net operating income yield over 9%. The hotel’s prime location, near the Footprint Center—home to the NBA’s Phoenix Suns and WNBA’s Phoenix Mercury—further strengthens its appeal. The Footprint Center attracts over 2 million visitors annually for sports and entertainment events, according to Visit Phoenix.

Phoenix’s hospitality market has seen growth due to rising population, talent influx, and significant real estate investments. Local infrastructure developments, especially following the $1.2 trillion infrastructure bill passed in 2021, have spurred demand for extended-stay accommodations.

West77 Partners’ chief development officer, Paul Duncan, and Joe Blewitt, senior vice president of hospitality at Jackson-Shaw, have both noted the burgeoning demand in Phoenix. They attribute this to large-scale projects like the $40 billion semiconductor manufacturing development by Taiwan’s TSMC, which is expected to require extended-stay lodging for its construction workforce.

Chatham’s latest acquisition not only diversifies its portfolio geographically but also broadens its market reach beyond business travelers. This strategic purchase positions the trust to capitalize on Phoenix’s growing market and infrastructure-driven demand.


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