Chatham Lodging Trust, a hotel real estate investment trust, sold the 27-year-old, 147-suite Homewood Suites by Hilton Billerica, Ma., for $17.4 million. Other terms and conditions were not disclosed.
An approximate $6 million renovation of the hotel was planned for 2025 but was not completed due to the pending sale. The hotel was projected to have the third lowest RevPAR in the portfolio and earn approximately $1 million of net operating income in 2025, thus equating to a capitalization rate of approximately 4 percent.
This sale marks the sixth hotel sold since December 2024, generating proceeds of approximately $100 million. Including near-term capital expenditures, the aggregate price equates to an approximate six percent capitalization rate.