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| 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.
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| 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
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