Chatham, Cerberus Close Innkeepers Acquisitions

PALM BEACH, Fla.--()--Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) focused on investing in premium-branded, select-service hotels, and affiliates of Cerberus Capital Management, L.P., a private investment firm, today announced that they have completed the acquisition of 64 hotels from affiliates of Innkeepers USA Trust.

The joint venture between Cerberus and Chatham acquired the 64 hotels, aggregating 8,329 rooms, for a total gross purchase price of approximately $1.02 billion, including the assumption of approximately $675 million of mortgage debt on 45 of the hotels with a weighted average interest rate of 6.71 percent and maturing in 2017. The other 19 hotels are unencumbered. The purchase price per room, net of cash reserves, was approximately $118,000 per room/suite.

Chatham owns an approximate 10.3 percent interest in the joint venture and funded its $37 million investment in the joint venture with borrowings under its senior secured revolving credit facility. Chatham will provide certain asset management services to the joint venture and will receive a promote interest based on meeting certain return thresholds. All costs of operating the joint venture will be paid by the joint venture.

All but one of the 64 acquired hotels will continue to be managed by Island Hospitality Management, a hotel management company that is 90 percent owned by Jeffrey H. Fisher, Chatham’s chief executive officer and president.

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, holds a minority investment in a joint venture that owns 64 hotels with 8,329 rooms/suites and has one additional hotel comprising 174 rooms/suites under contract to purchase. Additional information about Chatham may be found at

Forward-Looking Statement Safe Harbor

Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "plan," "predict," "project," "will," "continue" and other similar terms and phrases, including references to assumption and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, and include, but are not limited to: national and local economic and business conditions, including the effect on travel of potential terrorist attacks, that will affect occupancy rates at the company's hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of the company's indebtedness and its ability to meet covenants in its debt agreements; relationships with property managers; the company's ability to maintain its properties in a first-class manner, including meeting capital expenditure requirements; the company's ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; the company's ability to complete acquisitions and dispositions; and the company's ability to continue to satisfy complex rules in order for the company to remain a REIT for federal income tax purposes and other risks and uncertainties associated with the company's business described in the company's filings with the SEC. Although the company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of October 27, 2011, and the company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.

Fact Sheet
Hotels Acquired by Cerberus-Chatham Lodging Trust Joint Venture
#     Hotel   Location   State  


1     Boston Bulfinch   Boston   MA   79  
2     Courtyard by Marriott   Ft. Lauderdale   FL   136  
3     Courtyard by Marriott   Atlantic City   NJ   206  
4     Courtyard by Marriott   Montvale   NJ   184  
5     Embassy Suites   Santa Clarita   CA   156  
6     Gatehouse Suites   Indianapolis   IN   88  
7     Gatehouse Suites   East Lansing   MI   60  
8     Gatehouse Suites   Grand Rapids   MI   96  
9     Gatehouse Suites   Troy   MI   152  
10     Hampton Inn   Naples   FL   107  
11     Hampton Inn   Westchester   IL   112  
12     Hampton Inn   Louisville   KY   173  
13     Hampton Inn   Woburn   MA   99  
14     Hampton Inn   Columbia   MD   83  
15     Hampton Inn   Germantown   MD   178  
16     Hampton Inn   Islandia   NY   120  
17     Hampton Inn   Willow Grove   PA   150  
18     Hyatt Summerfield Suites   Belmont (Silicon Valley)   CA   132  
19     Hyatt Summerfield Suites   El Segundo   CA   122  
20     Hyatt Summerfield Suites   Mt. Laurel   NJ   116  
21     Hyatt Summerfield Suites   Dallas (Addison )   TX   132  
22     Hyatt Summerfield Suites   Dallas (Las Colinas)   TX   148  
23     Residence Inn by Marriott   Fremont (Silicon Valley)   CA   80  
24     Residence Inn by Marriott   Mountain View (Silicon Valley)   CA   112  
25     Residence Inn by Marriott   Ontario   CA   200  
26     Residence Inn by Marriott   San Jose (Silicon Valley)   CA   80  
27     Residence Inn by Marriott   San Jose (Silicon Valley)   CA   150  
28     Residence Inn by Marriott   San Mateo (Silicon Valley)   CA   160  
29     Residence Inn by Marriott   Sunnyvale (Silicon Valley)   CA   231  
30     Residence Inn by Marriott   Sunnyvale (Silicon Valley)   CA   247  
31     Residence Inn by Marriott   Denver   CO   159  
32     Residence Inn by Marriott   Denver (Englewood)   CO   128  
33     Residence Inn by Marriott   Shelton   CT   96  
34     Residence Inn by Marriott   Windsor   CT   96  
35     Residence Inn by Marriott   Altamonte Springs   FL   128  
36     Residence Inn by Marriott   Atlanta   GA   160  
37     Residence Inn by Marriott   Atlanta (Norcross)   GA   120  
38     Residence Inn by Marriott   Chicago (O'Hare)   IL   192  
39     Residence Inn by Marriott   Lexington   KY   80  
40     Residence Inn by Marriott   Louisville   KY   96  
41     Residence Inn by Marriott   Gaithersburg   MD   132  
42     Residence Inn by Marriott   Portland   ME   78  
43     Residence Inn by Marriott   Detroit (Livonia)   MI   112  
44     Residence Inn by Marriott   Troy (Madison Heights)   MI   96  
45     Residence Inn by Marriott   Cherry Hill   NJ   96  
46     Residence Inn by Marriott   Saddle River   NJ   174  
47     Residence Inn by Marriott   Binghamton   NY   72  
48     Residence Inn by Marriott   Harrisburg   PA   122  
49     Residence Inn by Marriott   Dallas (Addison )   TX   150  
50     Residence Inn by Marriott   Dallas (Arlington)   TX   114  
51     Residence Inn by Marriott   Richmond   VA   104  
52     Residence Inn by Marriott   Richmond   VA   80  
53     Residence Inn by Marriott   Bellevue   WA   120  
54     Residence Inn by Marriott   Bothell   WA   120  
55     Residence Inn by Marriott   Lynnwood   WA   120  
56     Residence Inn by Marriott   Seattle   WA   144  
57     Sheraton   Rockville   MD   154  
58     Sheraton Four Points   Ft. Walton Beach   FL   216  
59     Stay Inn   Lombard   IL   128  
60     Stay Inn   Schaumburg   IL   128  
61     Stay Inn   Ft. Wayne   IN   80  
62     Stay Inn   Albany   NY   126  
63     Towne Place Suites by Marriott   Horsham   PA   95  
64     Westin   Morristown   NJ   224  




Chatham Lodging Trust
Dennis Craven, Chief Financial Officer
Daly Gray
Jerry Daly or Carol McCune

Release Summary

Chatham Lodging Trust, a hotel REIT, and affiliates of Cerberus Capital Management, L.P., announce they have completed the acquisition of 64 hotels from affiliates of Innkeepers USA Trust.


Chatham Lodging Trust
Dennis Craven, Chief Financial Officer
Daly Gray
Jerry Daly or Carol McCune