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| Dennis Craven |
PALM BEACH, FL, Jan. 4,
2016—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 a joint venture comprised of
affiliates of Cerberus Capital Management LP and Chatham sold its interests in
the Residence Inn by Marriott Torrance, Calif.
Chatham realized a gain on
the sale of approximately $3.6 million, subject to certain minor post-closing
settlements.
Following the transaction’s consummation, Chatham’s board of
trustees declared a special, one-time common dividend of $0.08 per share that
will be treated as received by shareholders for tax purposes in 2016, but will
be applied by Chatham against its 2015 taxable income. Chatham owned a five
percent interest in the joint venture.
“Since April 2013, we
invested $1.6 million into the partnership that acquired the Residence Inn
Torrance, Calif., re-developed the gatehouse into a state-of-the-art facility
and significantly enhanced occupancy and room rate. The sale generated a
sizable gain on our investment due to our promoted interest in the joint
venture,” highlighted Dennis Craven,
Chatham’s chief operating officer.
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| Residence Inn by Marriott Torrance CA |
“This was a highly
successful investment, realizing an internal rate of return of almost 100
percent and unlocking value for our shareholders through the monetization of
our minority investment.
“Our intention is to
pay-out 100 percent of our taxable income via dividends, and this special
dividend rewards our shareholders after another great investment.”
The special dividend is
payable January 29, 2016, to shareholders of record on January 15, 2016.
For a complete copy of the company’s news release,
please contact:
Patrick Daly
Account Executive
Daly Gray, Inc.
620 Herndon Parkway
Suite 115
Herndon, VA 20170
(703) 435-6293 (office)
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