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):   May 17, 2013

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 211, 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 7.01 Regulation FD Disclosure.

On June 11, 2013, Chatham Lodging Trust (the "Company") issued a press release to announce that it has signed an agreement to acquire the 178-room Hyatt Place® Pittsburgh North Shore in Pittsburgh, Pennsylvania (the "Pittsburgh Hyatt Place") and to update its expectations with respect to revenue per available room ("RevPAR") for the second quarter of 2013.

A copy of such press release is furnished as Exhibit 99.1 to this report.





Item 8.01 Other Events.

Hotel Under Contract

On May 17, 2013, a wholly owned subsidiary of Chatham Lodging Trust(the "Company") entered into an agreement to acquire the Pittsburgh Hyatt Place for a total cash purchase price of $40.0 million, plus customary pro-rated amounts and closing costs. The Company expects to fund the purchase price for the Pittsburgh Hyatt Place with borrowings on its secured revolving credit facility and through the issuance of property-specific debt. The Company currently anticipates that the acquisition of the Pittsburgh Hyatt Place will close by June 17, 2013. However, because the acquisition remains subject to customary closing requirements and conditions, the Company can give no assurance that the acquisition will be consummated during that time period or at all.

Second Quarter 2013 RevPAR

As the Company has previously disclosed, the Company is in the process of rebranding its former DoubleTree Guest Suites hotel in Washington, D.C. hotel to a Residence Inn by Marriott (the "Washington Hotel"). The rebranding process involves renovations to the guest rooms and common areas and, as a result, certain rooms at the Washington Hotel are out of service during the renovation period, which is expected to be completed in the third quarter of 2013. These rooms out of service during this period will negatively affect the Company’s RevPAR for the second quarter ending June 30, 2013. The Company currently expects to report RevPAR of $114-115 for its 20 wholly-owned hotels for the second quarter of 2013, a 2-3% increase from RevPAR for the three months ended June 30, 2012. The Company anticipates a 4.5-5% increase from RevPAR for the three months ended June 30, 2012 for 19 of its 20 wholly-owned hotels (excluding the Washington Hotel).

The Company has estimated its anticipated RevPAR for the three months ended June 30, 2013 in good faith based on its internal reporting of its results to date. The Company can provide no assurance that, upon completion of the quarter and completion of the accounting and financial reporting processes and finalizing the financial statements as of and for the three months ended June 30, 2013, the Company will not report RevPAR for the second quarter 2013 materially different than as set forth above.





Item 9.01 Financial Statements and Exhibits.

Exhibit 99.1 - Press Release Dated June 11, 2013





The information contained in the press release attached as Exhibit 99.1 to this report shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. Furthermore, the information contained in the press release attached as Exhibit 99.1 to this report shall not be deemed to be incorporated by reference in the filings of the registrant under the Securities Act of 1933.


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
          
June 11, 2013   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 June 11, 2013
EX-99.1

         
For Immediate Release    
Contact:  
Jerry Daly
Daly Gray Public Relations
jerry@dalygray.com
  Dennis Craven
Chief Financial Officer
dcraven@cl-trust.com
   
 
   
   
(703) 435-6293
  (561) 227-1386

Chatham Lodging Signs Agreement to Acquire Hyatt Place Downtown Pittsburgh, Provides Business Update

PALM BEACH, Fla., June 11, 2013—Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) focused on investing in upscale extended-stay hotels and premium branded select-service hotels, today announced that it has entered into an agreement to purchase the 178-room Hyatt Place® Pittsburgh/North Shore in Pittsburgh, Pennsylvania for a cash purchase price of $40 million, plus customary pro-rated amounts and closing costs.

The Pittsburgh Hyatt Place opened in December 2010 and is located in Pittsburgh’s North Shore neighborhood, next door to PNC Park (home of the Pittsburgh Pirates) and near such attractions as Heinz Field (home of the Pittsburgh Steelers), the Andy Warhol Museum, the Carnegie Science Center and the National Aviary. The Pittsburgh Hyatt Place is also proximate to Fortune 500 employers such as Alcoa, Del Monte Foods, PNC Financial, U.S. Steel and Heinz.

Upon completion of the acquisition, the Pittsburgh Hyatt Place will be managed by Island Hospitality Management, or IHM, which is 90% owned by Jeffrey H. Fisher, Chatham’s Chairman, President and Chief Executive Officer. Chatham expects that the acquisition of the Pittsburgh Hyatt Place will close by June 17, 2013. However, because the acquisition remains subject to customary closing requirements and conditions, Chatham can give no assurance that the acquisition will be consummated during that time period or at all. Chatham intends to fund the purchase with borrowings on its secured revolving credit facility and property specific debt. Chatham will update its guidance to reflect the Pittsburgh Hyatt Place acquisition in conjunction with its second quarter 2013 earnings announcement.

Additionally, Chatham announced that it anticipates its 2013 second quarter revenue per available room, or RevPAR, will be further impacted by renovations in connection with the Company’s rebranding of the former Doubletree Guest Suites hotel in Washington D.C. to a Residence Inn by Marriott, which Chatham expects to complete in the third quarter of 2013. Although its consolidated financial statements for the three months ended June 30, 2013 are not yet complete, Chatham currently anticipates reporting RevPAR and RevPAR growth over the second quarter 2012 as follows:

     
RevPAR
  $114-$115
RevPAR growth, excluding the Washington D.C. hotel
  4.5-5.0%
RevPAR growth
  +2-3%

The Company has estimated its anticipated RevPAR for the second quarter 2013 and RevPAR growth over the second quarter 2012 in good faith based on its internal reporting of its results to date. The Company can provide no assurance that, upon completion of the quarter and completion of the accounting and financial reporting processes and finalizing the financial statements as of and for the three months ended June 30, 2013, the Company will not report RevPAR for the second quarter 2013 materially different than as set forth above.

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 owns interests in 72 hotels acquired for approximately $1.5 billion, comprised of 20 hotels it wholly owns with an aggregate of 2,733 rooms/suites in 11 states and the District of Columbia and holds a minority investment in a joint venture that owns 52 hotels with an aggregate of 6,927 rooms/suites. Additional information about Chatham may be found at www.chathamlodgingtrust.com.

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 about Chatham Lodging Trust, including statements regarding future plans, strategies, performance, acquisitions, capital expenditures, future operating results and the timing and composition of revenues, among others, and statements containing words such as “expects,” “believes” or “will,” which indicate that those statements are forward-looking. Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties that could cause the actual results or performance to differ materially from those discussed in such statements. Additional risks are discussed in the company’s filings with the Securities and Exchange Commission.

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