Upscale Hotel REIT IPO: Chatham Lodging Trust

| About: Chatham Lodging (CLDT)

Chatham Lodging Trust (NYSE:CLDT), a self-advised hotel REIT, is expected to price its IPO this week.

Business Overview (from prospectus)

We are a self-advised hotel investment company organized in October 2009 to invest in premium-branded upscale extended-stay and select-service hotels. We expect that a significant portion of our portfolio will consist of hotels in the upscale extended-stay category, including brands such as Residence Inn by Marriott®, Homewood Suites by Hilton® and Summerfield Suites by Hyatt®.

We also intend to invest in premium-branded select-service hotels such as Courtyard by Marriott®, Hampton Inn® and Hampton Inn and Suites®. We intend to invest primarily in hotels in the 25 largest metropolitan markets in the United States. We believe that current market conditions, including deteriorating industry fundamentals, will create attractive opportunities to acquire high quality hotels at cyclically low prices that will benefit from an improving economy and our aggressive asset management.

Offering: 7.5 million shares at $20 per share. net proceeds of approximately $73.5 million to purchase the initial acquisition hotels from the seller, $11 million over the next two years to enhance the quality of the six initial acquisition hotels and $3.5 million to reimburse Mr. Fisher for out-of-pocket expenses.

Lead Underwriters: Barclays Capital (NYSE:BCS), FBR Capital Markets (FBCM), Morgan Keegan

Financial Highlights:

The Company was formed on October 26, 2009. There were no results of operations for the Company for the period from inception to December 31, 2009.


We face competition for the acquisition and investment in hotel properties from institutional pension funds, private equity investors, REITs, hotel companies and others who are engaged in the acquisition of hotels. Some of these entities have substantially greater financial and operational resources than we have. This competition may increase the bargaining power of property owners seeking to sell, reduce the number of suitable investment opportunities available to us and increase the cost of acquiring our targeted hotel properties.

Additional Resources: