Chatham Lodging Acquires Embassy Suites in Greater Washington, D.C. Metro Area
Opened in August 2013, the LEED-certified hotel features steel and concrete construction with a soaring lobby space. In addition to its typical all-suite orientation, the hotel features 26 additional extended-stay suites with full kitchens. The company has the opportunity to convert more suites to this extended-stay-suite format, which gives the hotel the benefits of achieving higher average room rate and length of stay and a distinct advantage for long-term extended-stay guests.
"The hotel is ideally located less than two miles from Fort Belvoir, the nation's fifth largest military base and the largest employer in Fairfax County with more than 51,000 military and civilian employees, and the National Geospatial-Intelligence Agency, which is home to 16,000 employees. Additionally, the Transportation Security Administration recently announced the relocation of its headquarters with some 4,000 employees to two miles from the hotel by August 2020, which will further bolster employment and training in the area. While demand is concentrated in government/military business, there is also substantial corporate demand as Fairfax County has the second-largest concentration of technology jobs of any major U.S. market and is home to eight Fortune 500 companies such as Booz Allen, Capital One, General Dynamics, Hilton and Northrup Grumman," Fisher concluded.
Chatham estimates it acquired the property at a year one net operating income capitalization rate of approximately 7½ percent. The hotel will be managed by Island Hospitality Management, which is 51 percent owned by Fisher.
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About Chatham Lodging Trust
Chatham Lodging Trust is a self-advised, publicly-traded real estate investment trust focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns interests in 136 hotels totaling 18,616 rooms/suites, comprised of 41 properties it wholly owns with an aggregate of 6,117 rooms/suites in 15 states and the District of Columbia and a minority investment in two joint ventures that own 95 hotels with an aggregate of 12,499 rooms/suites. Additional information about Chatham may be found at chathamlodgingtrust.com.