Chatham Lodging Signs Agreement to Acquire Upscale Extended-Stay Hotel in Pittsburgh

PALM BEACH, FL, Jan. 31, 2011—Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) focused on upscale extended-stay hotels and premium-branded select-service hotels, today announced that it has signed a contract to acquire an upscale extended-stay hotel in Pittsburgh, Pa. for $24.9 million. 

The acquisition will be funded in part through the assumption of an existing $7.3 million mortgage loan.  The hotel will be the 14th property acquired by Chatham since its initial public offering.

“Our disciplined approach to acquisitions remains focused on upscale extended-stay hotels and premium-branded select-service properties, either as multi-property portfolios or individual hotels, located in major markets with high barriers to entry near strong demand generators,” said Jeffrey H. Fisher (top right photo), Chatham's chief executive officer. 

“Pittsburgh is home to six Fortune 500 companies, the University of Pittsburgh, Carnegie Mellon University, the University of Pittsburgh Medical Center and Hillman Cancer Center, as well as three professional sports venues.”

Following completion of the acquisition, the hotel will be managed by Island Hospitality Management, a hotel management company 90 percent-owned by Fisher.  Completion of the acquisition is subject to lender approval and satisfactory completion of due diligence and other customary closing conditions.

Business Update

Chatham anticipates that it will report pro forma revenue per available room (RevPAR) for the fourth quarter 2010 of $83.27, up 3.5 percent compared to the same period of the prior year. 

As highlighted in our December 16th business update, the fourth quarter RevPAR reflects the adverse impact of rooms out of service at three hotels due to accelerated renovations, which are expected to continue through the first quarter of 2011. 

Pro forma RevPAR is calculated as if Chatham had owned all 13 of its hotels for the entire fourth quarter of both 2009 and 2010.  Pro forma RevPAR for the three months ended December 31, 2010 is based on Chatham’s internal reporting and has not yet been audited and, therefore, is subject to revision based on the audit.

Additional information about Chatham may be found at http://www.chathamlodgingtrust.com/

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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