San Diego mergers and acquisitions attorneys are following the news about Chatham Lodging Trust. Chatham is a hotel real estate investment trust (REIT) focused on upscale extended-stay hotels and premium-branded select-service hotels. They recently announced that they have signed a contract to acquire an upscale extended-stay hotel in north San Diego, in an all-cash transaction for $32 million. If the transaction is completed, this will be the 13th hotel either acquired or under contract to purchase by Chatham in the past four months since its April 21, 2010 initial public offering.

Jeffrey H. Fisher, Chatham’s chief executive officer, said, “This is our first…

acquisition on the West Coast, and Southern California is one of our key target markets. We expect to fund the acquisition with our anticipated $85 million senior secured credit facility.”

He added, “The property fits our model of a great location, in a market with multiple demand generators and superb visibility and accessibility. We believe that the San Diego market also has among the highest barriers to new competition in the country.

Fisher also said, “This transaction, like many of our others, is one that we sourced based on our long-standing relationships within the market. “It was not actively marketed, and we were able to acquire the hotel at what we believe is an attractive price.”

When the transaction is completed, the hotel will be managed by Island Hospitality Management, which is 90 percent-owned by Fisher. Completion of the hotel acquisition is subject to satisfactory completion of due diligence and other customary closing conditions.

• Source: San Diego Entertainer “San Diego Biz Watch” August 23, 2010