CHATHAM LODGING TRUST (Form: 8-K)  

 


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

     
Date of Report (Date of Earliest Event Reported):   October 27, 2011

CHATHAM LODGING TRUST
__________________________________________
(Exact name of registrant as specified in its charter)

     
Maryland 001-34693 27-1200777
_____________________
(State or other jurisdiction
_____________
(Commission
______________
(I.R.S. Employer
of incorporation) File Number) Identification No.)
      
50 Cocoanut Row, Suite 216, Palm Beach, Florida   33480
_________________________________
(Address of principal executive offices)
  ___________
(Zip Code)
     
Registrant’s telephone number, including area code:   (561) 802-4477

Not Applicable
______________________________________________
Former name or former address, if changed since last report

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Top of the Form

Item 2.01 Completion of Acquisition or Disposition of Assets.

On October 27, 2011, wholly owned subsidiaries of Chatham Lodging Trust and affiliates of Cerberus Capital Management, L.P. 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.





Item 9.01 Financial Statements and Exhibits.

(a) Financial Statements of Businesses Acquired

The financial statements required by Item 9.01(a) are currently being prepared. The Company will file the required financial statements under the cover of Form 8-K/A as soon as practicable but not later than 71 calendar days after the latest date on which this initial Current Report on Form 8-K is required to be
filed.

(b) Pro Forma Financial Information.

The pro forma financial information required by Item 9.01(b) is currently being prepared. The Company will file the required pro forma financial information
under the cover of Form 8-K/A as soon as practicable but not later than 71 calendar days after the latest date on which this initial Current Report on Form 8-K is required to be filed.

(d) Exhibit 99.1 is attached to this 8-K






Top of the Form

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

         
    CHATHAM LODGING TRUST
          
October 28, 2011   By:   Dennis M. Craven
       
        Name: Dennis M. Craven
        Title: Chief Financial Officer


Top of the Form

Exhibit Index


     
Exhibit No.   Description

 
99.1
  Press Release Dated October 27, 2011
EX-99.1
     
For Immediate Release
Contact:
 

Dennis Craven (Company)
Chief Financial Officer
(561) 227-1386
  Jerry Daly or Carol McCune
Daly Gray (Media)
(703) 435-6293
Press Release
 

CHATHAM, CERBERUS CLOSE INNKEEPERS ACQUISITIONS

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.

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.

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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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Fact Sheet
Hotels Acquired by Cerberus-Chatham Lodging Trust Joint Venture

                         
#   Hotel   Location   State   Rooms
  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  
       
 
               
Total   8,329
         

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