Chatham Lodging Trust bought the 219-suite Embassy Suites by Hilton in Springfield, Va., for $68 million in an off-market transaction.
To fund the acquisition, the company used proceeds from its recent share offering that raised roughly $109 million.
The deal for the 2013-opened property translates to roughly $310,000 per suite.
The company estimates a year one net operating income capitalization rate of roughly 7.5%, according to a release.
The hotel will be managed by Island Hospitality Management, which is 51% owned by Chatham President and CEO Jeffrey Fisher.