Dealmaker: Chatham Lodging Trust Acquires South Florida Hotel for $31M

Chatham Lodging Trust, West Palm Beach, Fla., acquired the beachside 111-room Hilton Garden Inn Destin Miramar Beach in a $31 million off-market transaction.

Chatham funded the purchase using available cash and borrowing under its credit facility.

The hotel at 220 Scenic Gulf Drive in Miramar Beach, Fla., opened in 2020. within walking distance of the Gulf of Mexico and near the Santa Rosa Beach and Destin markets. Chatham estimated the property will generate an 8.0 percent to 8.5 percent stabilized net operating income yield.

Chatham CEO and President Jeffrey Fisher said the asset will represents the firm’s third-youngest hotel and generate a 2022 RevPAR premium nearly 50 percent above Chatham’s current portfolio. “The hotel diversifies Chatham’s portfolio by adding a predominantly leisure hotel and also expands our presence in the Sunbelt, which we believe will continue to benefit from population growth,” he said.

The Hilton Garden Inn Destin Miramar Beach has 27 guest rooms with views of the Gulf and a 900-square-foot meeting room. “Although the hotel will primarily serve leisure travelers, the property sits across the street from the Silver Sands Outlet stores and benefits from corporate demand,” Fisher said. “The Hilton Garden Inn also receives a strong amount of military demand related to Eglin Air Force Base, the country’s largest Air Force base.”