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During the IPO season Francis Gaskins, editor of IPOdesktop.com & director of research for Equities.com, regularly appears on CNBC TV, Bloomberg, thestreet.com & other financial cable channels. On the day of the Visa IPO he appeared on four cable TV financial shows including Bloomberg... More
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  • Chatham Lodging REIT IPOreport updated 1 comment
    Apr 14, 2010 3:07 PM | about stocks: CLDT, HPT, LHO, DRH, SHO, BEE, PEB
    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




    Disclosure: none
    Themes: IPO, IPOs Stocks: CLDT, HPT, LHO, DRH, SHO, BEE, PEB
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  • chirag242
    , contributor
    Comment (1) | Send Message
     
    none of the reits you mentioned are focused on the upscale extended stay segment..which was their point...
    14 Jul 2010, 08:50 PM Reply Like
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