Jeffrey Fisher, chairman, president, and CEO of Chatham Lodging Trust (NYSE: CLDT), participated in a video interview at Nareit’s REITworld: 2018 Annual Conference in San Francisco.
Chatham Lodging recently expanded with the acquisition of a Residence Inn outside of Charleston, South Carolina. Fisher explained that one of the keynotes of the REIT’s entire target market strategy is to focus on upscale, extended-stay hotels located in markets that have unusually fast growth and demand generators. In the case of the Charleston property, a Volvo plant located several miles away “makes for a favorable hotel demand component,” he said.
In terms of investment opportunities heading into 2019, Fisher noted that the market seems “for the most part, pretty expensive,” although that doesn’t preclude the company from making a few deals, he said. In addition, the sale of one or two properties should generate some “interesting capital recycling opportunities,” he added.
Meanwhile, Fisher observed that all participants within the niche of upscale, extended-stay hotels are facing supply issues. However, “we think the niche…with our favorite brand, Residence Inn by Marriott, provides great opportunity for growth,” he observed.