Chatham Lodging Trust Announces Exercise of Underwriters’ Overallotment Option to Purchase Additional Shares

PALM BEACH, FL—Chatham Lodging Trust (the Company) announced the full exercise of the underwriters’ overallotment option to purchase an additional 1,125,000 of the Company’s common shares of beneficial interest at the initial public offering (IPO) price of $20.00 per share, less the underwriting discount.

The overallotment option was exercised in connection with the Company’s IPO of 7,500,000 common shares, which priced on April 15, 2010.

Total proceeds from the IPO, including the overallotment option, are $160.4 million after deducting the full amount of the underwriting discount, including that portion of the underwriting discount that the underwriters have agreed to defer until the Company has used a specified portion of the offering proceeds to acquire hotel properties. The purchase of the shares pursuant to the IPO, including the shares purchased pursuant to the exercise of the overallotment option, is expected to close on April 21, 2010.

The Company will contribute the net proceeds of the offering to its operating partnership, which will use $73.5 million of the net proceeds to purchase six Homewood Suites by Hilton® hotels. The Company’s operating partnership will use the remaining net proceeds to invest in hotel properties in accordance with the Company’s investment strategy and for general business purposes.

Barclays Capital and FBR Capital Markets are acting as the joint book-running managers for the offering. Morgan Keegan & Company, Inc. and Stifel Nicolaus are acting as senior co-managers and Credit Agricole CIB and JMP Securities are acting as co-managers.

A copy of the prospectus can be obtained by contacting Barclays Capital, c/o Broadridge, Integrated Distribution Services, 1155 Long Island Ave., Edgewood, N.Y. 11717, telephone (888) 603-5847 or by e-mail at barclaysprospectus@broadridge.com, or FBR Capital Markets, Prospectus Department, 1001 18th Street, North, Arlington, Va. 22209 or by e-mail at prospectuses@fbr.com.

The prospectus may also be obtained by contacting any of the other underwriters listed above.

Contact:  (Media) Jerry Daly, Carol McCune, Daly Gray Public Relations, (703) 435-6293


Chatham Lodging Trust Acquires Six Hotels from RLJ Development for $73.5 Million

PALM BEACH, Fla., April 26, 2010—Chatham Lodging Trust (NYSE: CLDT ) today announced that it has acquired in an all-cash transaction six Homewood Suites by Hilton® hotels from RLJ Development, LLC for $73.5 million, or approximately $90,406 per suite.

The six hotels are the first properties to be acquired by Chatham since it completed its initial public offering on April 21, 2010. The hotels will continue to be managed by Hilton Worldwide.

“These hotels are typical of the type of properties we seek to acquire—upscale extended-stay hotels and premium-branded select-service properties that are located in major markets with high barriers to entry near strong demand generators for both business and leisure guests,” said Jeffrey H. Fisher, Chatham chief executive officer.

“We intend to invest approximately $11 million over the next two years at these hotels to upgrade guest rooms and common areas to enhance the guest experience and to meet brand requirements.”

The six hotels are:
· Homewood Suites by Hilton® Boston – (bottom right photo) Billerica/Bedford/Burlington; Billerica, Mass.; 147 suites.
· Homewood Suites by Hilton® Hartford – Farmington; Farmington, Conn.; 121 suites. (bottom left photo)
· Homewood Suites by Hilton® Minneapolis – Mall of America; Bloomington, Minn., 144 suites.
 Homewood Suites by Hilton® Dallas – Market Center; Dallas, Texas; 137 suites.
· Homewood Suites by Hilton® Orlando – Maitland; Maitland, Fla.; 143 suites.
· Homewood Suites by Hilton®Nashville – Brentwood; Brentwood, Tenn.; 121 suites.

Contact:
 (Media), Jerry Daly, Carol McCune, Daly Gray Public Relations, jerry@dalygray.com, (703) 435-6293
Peter Willis,  (Acquisitions), Chief Investment Officer, pwillis@cl-trust.com, (561) 227-1387