Chatham Lodging Trust Delivers Strong Third Quarter Results

PALM BEACH, FL—Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) focused on investing in premium branded upscale extended-stay hotels and select-service hotels,  announced results for the third quarter ended September 30, 2011.

2011 Third Quarter Highlights and Operating Results

• ·            Reported a 5.4 percent increase in revenue per available room (RevPAR) to $107.76 for the company’s 18 owned hotels as of September 30, 2011 compared to the 2010 third quarter. Occupancy increased 4.9 percent to 84.4 percent and average daily rate (ADR) rose 0.4 percent to $127.64.  RevPAR for the six recently renovated Homewood Suites hotels jumped 10.5 percent in the quarter. 

• ·            Generated adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $8.1 million, compared to $2.3 million in the same 2010 quarter.

• ·            Reported adjusted funds from operations (AFFO) above expectations of $4.5 million, or $0.33 per diluted share, compared to $1.9 million, or $0.21 per diluted share in 2010.

• ·            Reported a net loss of $(1.0 million), or $(0.07) per diluted share, in the 2011 third quarter, compared to a net loss of $(0.3) million, or $(0.03) per diluted share, in the comparable period in 2010. The net loss is attributable to $2.1 million of acquisition costs related to the Innkeepers acquisitions.

• ·            Recorded gross operating profit (GOP) margins (hotel operating revenue less hotel operating expenses, before property taxes and insurance) of 46.7 percent for the company’s 18-hotel portfolio, up 190 basis points over the 2010 third quarter for the same hotels, regardless of who owned the hotel for the comparable period.

• ·            Completed the acquisition of five hotels, comprising 764 rooms, for $195 million, or $255,000 per room.

• ·            Following the end of the quarter, completed a $37 million investment in a joint venture with Cerberus Capital Management LP in which Chatham acquired a 10.3 percent interest in 64 hotels from Innkeepers USA Trust for $1.02 billion.

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

Dennis Craven (Company)                                         Jerry Daly or Carol McCune

Chief Financial Officer                                                 Daly Gray (Media)

(561) 227-1386                                                               (703) 435-6293