Home Alts News NorthStar Realty Finance Corp Buys Majority Stake in 47 Hotels

NorthStar Realty Finance Corp Buys Majority Stake in 47 Hotels

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NorthStar Realty Finance Corp., sponsor to non-traded REITs, announced that it has entered into a $958.5 million deal with Chatham Lodging Trust and Cerberus Capital Management, LP. NorthStar will be buying a majority stake in 47 U.S. hotels as part of the deal.

The hotels operate under the Innkeepers brand and NorthStar will acquire Cerberus’s 89.7% interest in a joint venture, while Chatham keeps its 10.3% stake as well as exclusive ownership of an additional 4 properties in the portfolio. NorthStar is contributing approximately $213 million in equity for its stake. Chatham and Cerberus originally bought 64 Innkeeper hotels in October 2011, paying $1.02 billion for them.

The 47 hotels in the venture encompass a total of 6,100 rooms and are in top metropolitan areas with 83% of the hotels being associated with Marriott or Hilton brands.

NorthStar’s current non-traded REIT programs are NorthStar Real Estate Income II and NorthStar Healthcare Income.