WEST PALM BEACH, Fla.--(BUSINESS WIRE)--Chatham Lodging Trust (the “Company”) (NYSE: CLDT), a lodging real estate investment trust (REIT) that invests in upscale, extended-stay hotels and premium-branded, select-service hotels and owns 134 hotels wholly or through joint ventures, today announced that it has priced an underwritten public offering of 5,000,000 common shares of beneficial interest, par value $0.01 per share (“Common Shares”), at a per share public offering price of $21.90, or total estimated gross proceeds of approximately $109.5 million. The offering is expected to close on November 9, 2017, subject to customary closing conditions. The Company has also granted the underwriter a 30-day option to purchase up to an additional 750,000 common shares.
Barclays is acting as sole book-running manager for the offering.
The Company will contribute the net proceeds of the offering to its operating partnership in exchange for common units of limited partnership interest in the operating partnership. The Company’s operating partnership intends to use the net proceeds to fund the acquisitions of an approximately $20.1 million upscale select service hotel and an approximately $20.8 million upscale extended-stay hotel that is under construction (expected opening in May 2018), both in the greater Charleston, South Carolina area, and approximately $68.0 million to fund the acquisition of an upper upscale all-suites hotel in the greater Washington D.C. area. To the extent the Company’s operating partnership does not use the net proceeds for this purpose, the Company’s operating partnership intends to use the net proceeds for general corporate purposes, including other future hotel acquisitions, renovations and upgrades of guest rooms and common areas at certain of the Company’s hotels and the repayment of indebtedness.
The common shares are being offered pursuant to a prospectus supplement to the Company’s prospectus filed as part of the Company’s existing shelf registration statement, which has been filed with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
A copy of the prospectus supplement and accompanying prospectus relating to the offering can be obtained, when available, by contacting Barclays c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Barclaysprospectus@broadridge.com, (888) 603-5847.
About Chatham Lodging Trust
Chatham Lodging Trust is a self-advised, publicly-traded real estate investment trust focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns interests in 134 hotels totaling 18,341 rooms/suites, comprised of 39 properties it wholly owns with an aggregate of 5,843 rooms/suites in 15 states and the District of Columbia and a minority investment in two joint ventures that own 95 hotels with an aggregate of 12,498 rooms/suites.
FORWARD-LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER FEDERAL SECURITIES LAWS. THESE FORWARD-LOOKING STATEMENTS ARE BASED UPON THE COMPANY’S PRESENT EXPECTATIONS, BUT THESE STATEMENTS ARE NOT GUARANTEED TO OCCUR. FOR EXAMPLE: THE FACT THAT THIS OFFERING HAS PRICED MAY IMPLY THAT THE OFFERING WILL CLOSE, BUT THE CLOSING IS SUBJECT TO CONDITIONS CUSTOMARY IN TRANSACTIONS OF THIS TYPE AND MAY BE DELAYED OR MAY NOT OCCUR AT ALL. IN ADDITION, THE FACT THAT THE UNDERWRITER HAS AN OPTION TO PURCHASE ADDITIONAL SHARES MAY IMPLY THAT THIS OPTION WILL BE EXERCISED. HOWEVER, THE UNDERWRITER IS NOT UNDER ANY OBLIGATION TO EXERCISE THIS OPTION, OR ANY PORTION OF IT, AND MAY NOT DO SO. STATEMENTS CONTAINING WORDS SUCH AS “EXPECTS,” “BELIEVES” OR “WILL,” 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. INVESTORS SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD-LOOKING STATEMENTS.
