Chatham Lodging Trust Locks in Attractive Financing; Proceeds Free Up Capacity on Company’s Line of Credit for Acquisitions

  

Dennis M. Craven

 PALM BEACH, FL —Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) that owns wholly or through its joint venture approximately $1.5 billion of premium-branded, upscale, extended-stay and select-service hotels, announced that it has closed on a $20.0 million fixed-rate, first mortgage loan.

 The 10-year loan, which is secured by the 197-room Courtyard by Marriott Houston Medical Center hotel, was provided by Barclays Bank, plc.  The loan carries a fixed interest rate of 4.18 percent per annum, with principal and interest based on a 30-year amortization. 

Courtyard by Marriott Houston Medical Center

Proceeds from the loan will be used to repay outstanding borrowings under the company’s secured revolving credit facility.  The company now has $40 million available under its $115 million revolving credit facility.

“With long-term borrowing rates at historically low levels, we seek to take advantage of these market conditions using reasonable leverage to fund acquisitions, which enables us to lock in solid, long-term returns for our shareholders,” said Dennis Craven, Chatham’s chief financial officer.

 “This financing gives us considerable flexibility to respond quickly and opportunistically to acquisition opportunities.  It also further reduces the weighted average rate on our fixed-rate debt to a very attractive 5.05 percent and extends the weighted average maturity on our fixed-rate debt to 2021.”

For a complete copy of the company’s news release, please contact:

Dennis Craven (Company)

Chief Financial Officer                                                           

(561) 227-1386                                                                      

Jerry Daly or Chris Daly

Daly Gray (Media)

 (703) 435-6293

Jerry@dalygray.com