Chesapeake Lodging Trust Increases Size and Reduces Borrowing Cost of Its Revolving Credit Facility

  Chesapeake Lodging Trust Increases Size and Reduces Borrowing Cost of Its
  Revolving Credit Facility

Business Wire

ANNAPOLIS, Md. -- October 25, 2012

Chesapeake Lodging Trust (NYSE:CHSP) (the “Trust”) announced today that it has
amended its credit agreement by (1) increasing the maximum size of the
facility, (2) lowering the interest rate spread over LIBOR charged on
outstanding borrowings, and (3) extending the initial term. The amended credit
agreement increases the maximum amount the Trust may borrow under the secured
revolving credit facility from $200.0 million to $250.0 million, and also
provides for the possibility of further future increases, up to a maximum of
$375.0 million, in accordance with the terms of the amended credit agreement.
The $50.0 million increase resulted from $25.0 million commitments provided by
two new banks, PNC Bank, N.A. and TD Bank, N.A. The actual amount that the
Trust can borrow under the secured revolving credit facility continues to be
based on the value of the Trust's hotels included in the borrowing base, as
defined in the amended credit agreement. The interest rate spread over LIBOR
for borrowings under the secured revolving credit facility was reduced by 100
basis points to LIBOR, plus 1.75% - 2.75% (the spread over LIBOR based on the
Trust’s consolidated leverage ratio). The initial term of the amended credit
agreement will now expire in April 2016, but the term may be extended for one
year subject to satisfaction of certain customary conditions. The amended
credit agreement effected no other significant changes to the financial
covenants, including the leverage and coverage ratios and minimum tangible net
worth requirement, or other business terms of the secured revolving credit
facility, as compared to those in effect prior to the amendment.

“We are very pleased to take advantage of the current low interest rate
environment and reduce our borrowing cost under our revolving credit facility
by 100 basis points, while at the same time extending the initial term by 18
months,” stated Douglas W. Vicari, Chesapeake Lodging Trust’s Executive Vice
President, Chief Financial Officer, and Treasurer. “The additional $50 million
of commitments obtained from PNC Bank and TD Bank will provide us greater
flexibility as we manage our capital structure through the current lodging
cycle.”

ABOUT CHESAPEAKE LODGING TRUST

Chesapeake Lodging Trust is a self-advised lodging real estate investment
trust (REIT) focused on investments primarily in upper-upscale hotels in major
business and convention markets and, on a selective basis, premium
select-service hotels in urban settings or unique locations in the United
States. The Trust owns 14 hotels with an aggregate of 4,500 rooms in six
states and the District of Columbia. Additional information can be found on
the Trust’s website at www.chesapeakelodgingtrust.com.

Contact:

Chesapeake Lodging Trust
Douglas W. Vicari, 410-972-4142