Chatham Lodging Trust, a hotel real estate investment trust, has signed a contract to acquire an upscale extended-stay hotel in north San Diego, California in an all-cash transaction for USD32m.

The property marks the 13th hotel either acquired or under contract to purchase by Chatham in the past four months since its 21 April 2010 initial public offering.

"This is our first acquisition on the West Coast, and Southern California is one of our key target markets," says Jeffrey H. Fisher, Chatham's chief executive officer. "We expect to fund the acquisition with our anticipated USD85m senior secured credit facility.

"The property fits our model of a great location, in a market with multiple demand generators and superb visibility and accessibility. We believe that the San Diego market also has among the highest barriers to new competition in the country."

Completion of the hotel acquisition is subject to satisfactory completion of due diligence and other customary closing conditions. Upon consummation of the transaction, the hotel will be managed by Island Hospitality Management, which is 90 per cent owned by Fisher.