Chatham Lodging Trust sold the 145-suite Homewood Suites by Hilton Carlsbad in California for $33 million, reflecting a roughly 6.5% net operating income capitalization rate.
The sale price translates into approximately $228,000 per suite.
According to President and CEO Jeffrey Fisher, the transaction is the first sale under the company's capital recycling initiative announced earlier in 2017.
The unnamed buyer took on a $20 million CMBS loan, bearing interest of 4.3%, in connection with the deal. Remaining $13 million in proceeds will be used trim Chatham's borrowings under its unsecured credit facility.
