Chatham Lodging Signs Agreement to Acquire Hyatt Place Downtown Pittsburgh, Provides Business Update

  Chatham Lodging Signs Agreement to Acquire Hyatt Place Downtown Pittsburgh,
  Provides Business Update

Business Wire

PALM BEACH, Fla. -- June 11, 2013

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 it has entered into an
agreement to purchase the 178-room Hyatt Place^® Pittsburgh/North Shore in
Pittsburgh, Pennsylvania for a cash purchase price of $40 million, plus
customary pro-rated amounts and closing costs.

The Pittsburgh Hyatt Place opened in December 2010 and is located in
Pittsburgh’s North Shore neighborhood, next door to PNC Park (home of the
Pittsburgh Pirates) and near such attractions as Heinz Field (home of the
Pittsburgh Steelers), the Andy Warhol Museum, the Carnegie Science Center and
the National Aviary. The Pittsburgh Hyatt Place is also proximate to Fortune
500 employers such as Alcoa, Del Monte Foods, PNC Financial, U.S. Steel and
Heinz.

Upon completion of the acquisition, the Pittsburgh Hyatt Place will be managed
by Island Hospitality Management, or IHM, which is 90% owned by Jeffrey H.
Fisher, Chatham’s Chairman, President and Chief Executive Officer. Chatham
expects that the acquisition of the Pittsburgh Hyatt Place will close by June
17, 2013. However, because the acquisition remains subject to customary
closing requirements and conditions, Chatham can give no assurance that the
acquisition will be consummated during that time period or at all. Chatham
intends to fund the purchase with borrowings on its secured revolving credit
facility and property specific debt. Chatham will update its guidance to
reflect the Pittsburgh Hyatt Place acquisition in conjunction with its second
quarter 2013 earnings announcement.

Additionally, Chatham announced that it anticipates its 2013 second quarter
revenue per available room, or RevPAR, will be further impacted by renovations
in connection with the Company’s rebranding of the former Doubletree Guest
Suites hotel in Washington D.C. to a Residence Inn by Marriott, which Chatham
expects to complete in the third quarter of 2013. Although its consolidated
financial statements for the three months ended June 30, 2013 are not yet
complete, Chatham currently anticipates reporting RevPAR and RevPAR growth
over the second quarter 2012 as follows:

                                                     
RevPAR                                                   $114-$115
RevPAR growth, excluding the Washington D.C. hotel       4.5-5.0%
RevPAR growth                                            +2-3%
                                                         

The Company has estimated its anticipated RevPAR for the second quarter 2013
and RevPAR growth over the second quarter 2012 in good faith based on its
internal reporting of its results to date. The Company can provide no
assurance that, upon completion of the quarter and completion of the
accounting and financial reporting processes and finalizing the financial
statements as of and for the three months ended June 30, 2013, the Company
will not report RevPAR for the second quarter 2013 materially different than
as set forth above.

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 owns interests in 72 hotels acquired for approximately $1.5 billion,
comprised of 20 hotels it wholly owns with an aggregate of 2,733 rooms/suites
in 11 states and the District of Columbia and holds a minority investment in a
joint venture that owns 52 hotels with an aggregate of 6,927 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
703-435-6293
jerry@dalygray.com
or
Chatham Lodging Trust
Dennis Craven
Chief Financial Officer
561-227-1386
dcraven@cl-trust.com
 
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