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Chatham Lodging and Cerberus Capital
Complete Acquisition of
Innkeepers USA Trust's
64 Hotels for $1.02 billion
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News for the Hospitality Executive |
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Chatham Lodging and Cerberus Capital
Complete Acquisition of
Innkeepers USA Trust's
64 Hotels for $1.02 billion
|
PALM
BEACH, Fla. (October 27, 2011) – 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. Fact Sheet Hotels Acquired by Cerberus-Chatham Lodging Trust Joint Venture
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 www.chathamlodgingtrust.com. 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.
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| Contact: Dennis Craven (Company) Chief Financial Officer (561) 227-1386 Jerry Daly or Carol McCune Daly Gray (Media) (703) 435-6293 |