Chatham Lodging Raises 2013 Dividend 5%, Increases Dividend Frequency to Monthly

  Chatham Lodging Raises 2013 Dividend 5%, Increases Dividend Frequency to
  Monthly

                    Declares 2012 Fourth Quarter Dividend

Business Wire

PALM BEACH, Fla. -- December 04, 2012

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 its board of trustees has
declared a $0.20 common share dividend for the 2012 fourth quarter. The common
share dividend is payable January 25, 2013, to shareholders of record on
December 31, 2012.

Dividend Increase & Frequency

In addition, Chatham’s board voted to raise the dividend in 2013 by five
percent, to an annual rate of $0.84 per share, and to convert the company’s
current quarterly dividend to a monthly dividend of $0.07 per share beginning
in January 2013. “Our goal is to build a superior portfolio of investments
that will appreciate in value and generate an attractive and dependable
dividend over time for our investors,” said Jeffrey H. Fisher, Chatham’s chief
executive officer and president. “Since modern-day hotel REITs were launched
in the early 1990’s, shareholder returns have been driven predominantly by
dividends. We haven’t lost sight of that, and Chatham offers the right
platform to provide meaningful income to our shareholders.

“Our platform uses reasonable leverage and a healthy balance sheet to build a
portfolio of investments focused in select-service hotels, and with our
aggressive asset management, produces strong cash flow, industry-leading
operating margins and most importantly sustainable dividends,” Fisher noted.
“We have grown our annual dividend from $0.35 in 2010 to $0.78 in 2012 and at
least $0.84 in 2013, reflecting a 140 percent increase. Converting the
frequency of our dividends to monthly from quarterly accelerates our
shareholders’ returns and value.”

The planned schedule for Chatham’s 2013 monthly dividends will be a record
date of the last day of each month, to be paid on the last Friday of the
succeeding month. The January common stock dividend will be paid on February
22, 2013 to shareholders of record January 31, 2013. The company will evaluate
and adjust its dividend on a monthly basis.

“We have renovated most of our portfolio in the last two years and our
portfolio is in excellent competitive condition,” commented Dennis M. Craven,
Chatham’s chief financial officer. “As a result, we expect our properties to
generate excellent free cash flow which allows us to reward our shareholders
monthly with higher dividends. The change in payment schedule and increased
pay-out reflect our board’s positive outlook for Chatham and the hotel
industry.”

Additionally, the company announced that it expects to establish a direct
stock purchase plan and dividend reinvestment plan for its shareholders in
2013.

About Chatham Lodging Trust

Chatham Lodging Trust is a self-advised REIT that was organized to invest in
upscale extended-stay hotels and premium-branded, select-service hotels. The
company currently owns 18 hotels with an aggregate of 2,414 rooms/suites in 10
states and the District of Columbia and holds a minority investment in a joint
venture that owns 55 hotels with an aggregate of 7,282 rooms/suites.
Additional information about Chatham may be found at
www.chathamlodgingtrust.com.

This press release may contain “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995 about Chatham Lodging
Trust, including statements regarding future plans, strategies, performance,
acquisitions, capital expenditures, future operating results and the timing
and composition of revenues, among others, and statements containing words
such as “expects,” “believes” or “will,” which indicate that those statements
are forward-looking. Except for historical information, the matters discussed
in this press release are forward-looking statements that are subject to
certain risks and uncertainties that could cause the actual results or
performance to differ materially from those discussed in such statements.
Additional risks are discussed in the company’s filings with the Securities
and Exchange Commission.

Contact:

Daly Gray Public Relations
Jerry Daly (Media)
703-435-6293
jerry@dalygray.com
or
Chatham Lodging Trust
Dennis Craven (Company)
Chief Financial Officer
561-227-1386
dcraven@cl-trust.com
 
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