Chatham Lodging Trust Sells Homewood Suites by Hilton Billerica for Seventeen Million Four Hundred Thousand Dollars, Refining US Portfolio

Published on December 24, 2025

In a key decision aimed at refining its portfolio, Chatham Lodging Trust, a real estate investment trust (REIT) focused on upscale and extended-stay hotels, has announced the sale of Homewood Suites by Hilton Billerica, located in Billerica, Massachusetts. The sale, valued at $17.4 million, marks an important step in the company’s ongoing strategy to optimize its hospitality holdings and focus on high-performing assets within its portfolio. This move also reflects a broader trend in the industry, where hotel operators are continually reassessing and repositioning their assets to align with market demand and evolving consumer preferences.

The Homewood Suites by Hilton Billerica, a 27-year-old property with 147 suites, was previously part of Chatham’s extended-stay hotel segment. However, the property was projected to underperform in the upcoming years, prompting Chatham to divest the asset. The hotel had planned renovations, including a $6 million renovation scheduled for 2025, but these were deferred due to the pending sale. Despite this, the hotel was expected to generate approximately $1 million in net operating income (NOI) for the year, with a capitalization rate of around 4 percent, lower than other assets in Chatham’s portfolio.

Ongoing Disposition Strategy to Optimize Portfolio

The sale of Homewood Suites by Hilton Billerica is the sixth hotel sold by Chatham Lodging Trust since December 2024, generating total proceeds of approximately $100 million. The company has been strategically divesting underperforming assets to reinvest in properties that better align with its long-term goals. When factoring in near-term capital expenditures, the aggregate price of these sales reflects an approximate 6 percent capitalization rate, further highlighting Chatham’s strategy of focusing on higher-performing assets that can deliver strong returns.

Chatham’s ongoing disposition strategy allows the company to maintain a balanced portfolio while responding to the dynamic nature of the hospitality market. By selling assets that do not meet performance expectations and reinvesting the proceeds, Chatham ensures that it remains competitive in a rapidly evolving sector.

Chatham Lodging Trust’s Focus on Upscale, Extended-Stay Hotels

Chatham Lodging Trust has established itself as a leader in the upscale extended-stay hotel segment, with a portfolio that includes 33 hotels across the United States. These properties total 5,021 rooms and suites and are spread across 15 states and the District of Columbia. The company specializes in premium-branded select-service hotels and has successfully capitalized on the growing demand for extended-stay accommodations, which cater to both business and leisure travelers seeking longer stays.

The sale of Homewood Suites by Hilton Billerica aligns with Chatham’s broader strategy to focus on high-performing properties that meet the evolving needs of the hospitality market. As part of this approach, Chatham continues to refine its portfolio by divesting underperforming assets while reinvesting in hotels that offer strong growth potential. The company’s long-term vision remains centered on maintaining a well-balanced mix of assets in the extended-stay and premium-branded hotel segments.

The Role of Extended-Stay Hotels in Today’s Travel Landscape

The demand for extended-stay accommodations has surged in recent years, driven by changing travel habits, including longer business trips and the growing trend of remote work. Travelers are seeking flexible, comfortable, and affordable options for longer stays, which has made extended-stay hotels a key part of the hospitality market. With more travelers choosing extended stays for work, leisure, or relocation, properties like Homewood Suites have become essential offerings for hotel brands that cater to these needs.

Chatham Lodging Trust has capitalized on this trend by focusing on properties that provide the amenities and flexibility that extended-stay travelers demand. This includes offering suites with kitchenettes, flexible meeting spaces, and access to fitness and wellness options. As more travelers seek longer stays, especially in business hubs or leisure destinations, extended-stay hotels will continue to play a critical role in meeting these needs.

Strategic Investment and Growth in the Hospitality Sector

Looking forward, Chatham Lodging Trust remains committed to strategically investing in high-performing hospitality assets across the United States. The company continues to focus on acquiring properties that complement its existing portfolio of extended-stay hotels and premium select-service hotels, seeking to expand in key growth markets. By targeting hotels in high-demand regions and up-and-coming urban neighborhoods, Chatham can continue to build a diversified portfolio that delivers sustainable returns.

The broader hospitality sector continues to evolve, with travelers seeking more diverse and personalized experiences. Hotels that can offer unique amenities, enhanced guest services, and a deeper connection to local culture will continue to thrive. As part of its long-term growth strategy, Chatham aims to align with these trends, positioning itself as a leader in the extended-stay and select-service hotel segments.

Sustainability and Operational Efficiency at Chatham Lodging Trust

As part of its commitment to sustainability and operational excellence, Chatham Lodging Trust continues to prioritize operational efficiency and sustainable practices in its portfolio. The company’s decision-making process regarding asset sales and acquisitions reflects its focus on maximizing long-term, sustainable returns while adhering to environmental and operational best practices. By maintaining a diversified and well-managed portfolio, Chatham ensures that it can meet the evolving demands of both the hospitality market and the growing emphasis on sustainability in the industry.

A Strategic Move for Future Growth

The sale of Homewood Suites by Hilton Billerica represents a strategic move for Chatham Lodging Trust, allowing the company to optimize its holdings and position itself for future growth. The funds generated from this transaction will be reinvested in properties that align with the company’s upscale and extended-stay hotel strategy, further enhancing its portfolio. With a clear focus on operational efficiency, sustainability, and long-term growth, Chatham is well-positioned to continue delivering value for its investors while meeting the needs of today’s evolving hospitality market.

Conclusion: A Bright Future for Chatham Lodging Trust

Chatham Lodging Trust’s commitment to refining its portfolio and strategically repositioning its assets ensures that it remains competitive in the ever-changing hospitality market. The sale of Homewood Suites by Hilton Billerica is part of this broader effort, allowing the company to release capital for reinvestment in higher-performing properties. With a continued focus on extended-stay hotels, premium-branded assets, and operational excellence, Chatham is poised for sustained success and growth in the hospitality industry.