Chatham Lodging Trust Announces Fourth Quarter Results

 PALM BEACH, FL—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 results for the fourth quarter ended December 31, 2010.

Fourth Quarter 2010 Highlights

• ·            Reported pro forma revenue per available room (RevPAR) for the fourth quarter of $83.19, an increase of 3.5 percent from the comparable period in 2009, assuming the company owned all 13 of its hotels for the entire fourth quarter.

• Pro forma occupancy rose 2.7 percent to 73.1 percent and pro forma average daily rate (ADR) was up 0.7 percent to $113.76. Pro forma RevPAR reflects the adverse impact of rooms out of service at three hotels due to accelerated renovations

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• ·            Recorded gross operating profit (GOP) margins (hotel operating revenue less hotel operating expenses, before property taxes and insurance) of 40.2 percent for the fourth quarter, increasing 170 basis points over the fourth quarter 2009.
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• ·            Generated adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $3.4 million, adjusted funds from operations (FFO) of $2.2 million and adjusted FFO per diluted share of $0.24 based on shares outstanding in the fourth quarter.
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• ·            Trailing twelve month adjusted EBITDA yield of 9 percent and capitalization rate of 8 percent on 2010 net operating income for the 13 hotels owned at December 31, 2010.
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• ·            Declared a dividend of $0.175 per share.
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• ·            Invested $53 million to acquire two hotels comprising 269 rooms, bringing Chatham’s current hotel portfolio to 13 hotels and 1,650 rooms.
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• ·            Closed on $85 million secured revolving credit facility that can expand to $110 million.

“We continue to successfully execute our business plan, as evidenced by our acquisition pace and income yields, our conservative capital structure and healthy dividends, putting us well ahead of the expectations we set forth at the time of our IPO,” said Jeffrey H. Fisher (top right photo), Chatham’s chief executive officer and president.

 “We are very pleased with our results in 2010 with revenue and EBITDA exceeding our IPO expectations.  With the recent completion of our $74 million secondary offering, we are well positioned to deliver accretive acquisitions that will in turn drive incremental returns for our shareholders.”

Contact:

Dennis Craven (Company), Chief Financial Officer, (561) 227-1386,     

Jerry Daly or Carol McCune, Daly Gray (Media), (703) 435-6293