Chatham Lodging Completes Acquisition of the Hyatt Place Downtown Pittsburgh

  Chatham Lodging Completes Acquisition of the Hyatt Place Downtown Pittsburgh

Business Wire

PALM BEACH, Fla. -- June 19, 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 completed its
acquisition of the 178-room Hyatt Place^® Pittsburgh/North Shore in
Pittsburgh, Pa., for a 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 Heinz Field (home of the Pittsburgh Steelers), and
near such attractions as the Andy Warhol Museum, the Carnegie Science Center
and the National Aviary. The Pittsburgh Hyatt Place also is proximate to
Fortune 500 employers such as Alcoa, Del Monte Foods, PNC Financial, U.S.
Steel and Heinz.

“This is a stunning, high quality hotel in a fantastic location in downtown
Pittsburgh and represents our first Hyatt branded hotel in the Chatham
portfolio,” said Jeffrey H. Fisher, Chatham’s chief executive officer. “We
source the majority of our acquisitions privately, which improves pricing and
enables us to pass on incremental value to our shareholders. This acquisition
aligns perfectly with our strategy of acquiring premium–branded, upscale
extended stay and select-service hotels in high demand markets that command
high daily rates and revenue. Average daily rate at the Pittsburgh Hyatt place
is expected to be approximately $163 in 2013, well above our current portfolio
rate, and we expect to improve the operating performance of the hotel in 2013
with better revenue and profit performance.”

The Pittsburgh Hyatt Place is managed by Island Hospitality Management (IHM),
which is 90 percent owned by Fisher. Chatham funded the purchase with
borrowings on its secured revolving credit facility and a $24.2 million fixed
rate, first-mortgage loan. The 10-year loan was provided by Barclays Bank,
plc. The loan carries a fixed interest rate of 4.65 percent per annum, with
principal and interest based on a 30-year amortization.

Chatham will update its guidance to reflect the Pittsburgh Hyatt Place
acquisition, the 4,500,000 common share equity offering and the mortgage
financing in conjunction with its second quarter 2013 earnings announcement.

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 73 hotels acquired for approximately $1.5 billion,
comprised of 21 hotels it wholly owns with an aggregate of 2,911 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, 561-227-1386
Chief Financial Officer
dcraven@cl-trust.com
 
Press spacebar to pause and continue. Press esc to stop.