Chatham Lodging Trust completed the sale of its 27‑year‑old, 147‑suite Homewood Suites by Hilton in Billerica, Massachusetts, for $17.4 million on December 23, 2025. The transaction closed at a capitalization rate of roughly 4 %, a discount to the company’s typical 6 % rate for lower‑performing assets, and reflects the property’s third‑lowest RevPAR in the portfolio.
The sale is the sixth asset‑recycling transaction since the company began divesting older, under‑performing hotels in December 2024. Combined, the six sales have generated about $100 million in proceeds, allowing Chatham to reduce leverage from 23 % to 21 % of hotel investments at cost and to free capital for higher‑yielding opportunities and share repurchases.
Management cited the Billerica property’s weak performance and a planned $6 million renovation that was deferred as key reasons for the sale. The hotel’s RevPAR lagged behind the portfolio average, and the deferred renovation would have required additional capital that the company preferred to allocate elsewhere.
The $17.4 million proceeds will be redeployed into higher‑yielding assets and share buybacks, reinforcing the company’s focus on upscale, extended‑stay hotels. The transaction also improves the company’s balance sheet, with leverage now at 21 % and a stronger cash position to support future acquisitions.
The sale coincided with a Q3 2025 earnings miss, in which the company reported earnings per share of $0.03 versus analysts’ estimate of $0.04 and revenue of $78.41 million versus $79.68 million. The earnings shortfall, driven by weaker RevPAR and higher operating costs, contributed to a 0.78 % decline in the company’s stock price and a 2.02 % drop on the day of the sale announcement.
In a statement, Chatham’s management emphasized disciplined capital deployment and confidence in the portfolio’s long‑term prospects. The company reiterated its commitment to optimizing its asset mix and maintaining a strong balance sheet, signaling that the sale is part of a broader strategy to enhance shareholder value.
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