Chatham Lodging Trust Announces Marketing of Joint Venture Hotel Portfolio

  

Jeffrey H. Fisher

PALM BEACH, FL —Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) focused on investing in upscale extended-stay hotels and premium branded select-service hotels, today announced that the Chatham/Cerberus joint venture is offering for sale the 51-hotel, 6,847 room Innkeepers portfolio. Eastdil Secured is exclusive advisor for the offering.

The offering represents a rare opportunity to own a highly-diversified portfolio of newly renovated hotels that are supported by superior locations, leading brands, strong property performance, substantial recent capital investment and compelling, long-term value enhancement opportunities.

The portfolio is being offered unencumbered by management contracts and has a $950 million interest-only loan in place with a floating interest rate of LIBOR + 4.8 percent that is assumable subject to certain conditions.

The portfolio benefits from $171 million in capital expenditures since 2007 or approximately $25,000 per room. Operating performance has been strong in 2013 with estimated RevPAR growth of 5.5 percent, a RevPAR penetration index of 129 and estimated EBITDA of approximately $101 million.

“Having owned or operated the portfolio for quite some time, we know these hotels very well, its results are very strong, and with industry experts projecting attractive growth in the future, we would expect the portfolio to continue to produce great results” said Jeffrey H. Fisher, Chatham’s chief executive officer.

 “The joint venture has already returned 92 percent of our original capital investment, so if a sale occurs, the potential value that may accrue to Chatham because of our promote interest could be meaningful.”

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

Jerry Daly, Carol McCune                                 

Daly Gray Public Relations                                  

(Media)                                                                 

(703) 435-6293                                                    

jerry@dalygray.com

Dennis Craven

Chief Financial Officer

(Company)                

(561) 227-1386              

dcraven@cl-trust.com

www.chathamlodgingtrust.com.