OVERVIEW & PRICING
. CLDT is a new hotel REIT that has six properties ready to be acquired for $73mm, generating over $6.6mm EBITDA, 11.1 times EBITDA.
. At $20 CLDT is priced at 1.1 times book, in the same range as as Pebblebrook (NYSE:PEB) at 1.1 times book and Chesapeake Lodging (CHP) at 1 times book. However, neither have made acquisitions yet.
. Hersha (NYSE:HT) & Strategic Hotels (NYSE:BEE)are not direct comparables because they have portfolios of prior transactions. HT raised $117mm March 19 at $4.25 per share. It traded April 14 at $5.50 per share up 23%
APPARENTLY FILED MISLEADING STATEMENTS
Chatham Lodging (NYSE:CLDT) makes what appear to be false & misleading statements in the SEC filing, to wit
“We believe that there are a limited number of potential buyers currently able to compete for acquisitions of portfolios such as the initial acquisition hotels since there are no current public lodging REITs primarily focused on acquiring and owning upscale extended-stay hotels
However, Hersha (HT) is doing hotel acquisitions right now, the most recent was February 11, 2010 and Pebblebrook (PEB( is also actively looking, which belies CLDT’s filing statement comment.
Consider the following:
Hospitality Properties Trust (NYSE:HPT), $3.2bb market cap
LaSalle Hotel Properties (NYSE:LHO), $1.56bb market cap
DiamondRock Hospitality (NYSE:DRH) , $1.39bmarket cap
Sunstone Hotel Investors (NYSE:SHO), $1.15bb market cap
Strategic Hotels & Resorts (BEE) $452mm market cap
Pebblebrook Hotel Trust (PEB), $419mm market cap
Etc etc etc
All are much larger than CLDT’s projected market cap of $162mm
read more in the CLDT IPOreport