Although as a REIT we cannot operate our hotels, we will proactively manage our third-party hotel managers in seeking to maximize hotel operating performance.
Our asset management activities will seek to ensure that our third-party hotel managers effectively utilize franchise brands’ marketing programs, develop effective sales management policies and plans, operate properties efficiently, control costs, and develop operational initiatives for our hotels that increase guest satisfaction.
As part of our asset management activities, we will regularly review opportunities to reinvest in our hotels to maintain quality, increase long-term value and generate attractive returns on invested capital.
Our goal is to maximize the performance of our hotels through great collaboration with our operators.
Being flexible in our selection of hotel management companies increases the universe of potential acquisition opportunities. Island Hospitality is one of the best hotel operators of select service and extended-stay hotels in the industry and given the many markets where Island operates hotels, we use their expertise to help us underwrite and diligence potential hotel acquisitions.
Island Hospitality currently manages all but two of our hotels and manages all fifty-one hotels in our Innkeepers joint venture. Concord Hospitality manages the remaining two hotels.
Our management team, led by our chief executive officer, Jeffrey H. Fisher, has extensive experience acquiring, developing, financing, repositioning, managing and selling hotels.
Prior to forming Chatham Lodging Trust, Mr. Fisher served as chairman, chief executive officer and president of Innkeepers USA Trust, or Innkeepers, a New York Stock Exchange-listed hotel real estate investment trust, or REIT, from its inception in 1994 through its sale in June 2007.
Mr. Fisher successfully grew Innkeepers from a portfolio of seven hotels at the time of its initial public offering, or IPO, in 1994 to 74 hotels at the time of its sale and delivered strong returns for Innkeepers’ shareholders. Seven of the eight members of the board of trustees of Innkeepers at the time of its sale in June 2007 have agreed to serve as trustees of our company.
Disciplined acquisition of hotel properties: We intend to invest primarily in premium-branded upscale extended-stay, select-service and full-service hotels in the 25 largest metropolitan markets in the United States.
We focus on acquiring hotel properties at prices below replacement cost in markets that have strong demand generators and where we expect demand growth will outpace new supply. We also seek to acquire properties that we believe are under managed or undercapitalized. We currently do not intend to engage in new hotel development.
Opportunistic hotel repositioning: We intend to employ value-added strategies, such as re-branding, renovating, or changing management, when we believe such strategies will increase the operating results and values of the hotels we acquire.