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): January 24, 2014
CHATHAM LODGING TRUST
(Exact name of Registrant as specified in its charter)
Maryland | 001-34693 | 27-1200777 |
(State or Other Jurisdiction of Incorporation or Organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
50 Cocoanut Row, Suite 211 Palm Beach, Florida | 33480 |
(Address of principal executive offices) | (Zip Code) |
(561) 802-4477
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed from 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)) |
Item 7.01 Regulation FD Disclosure.
On January 24, 2014, Chatham Lodging Trust (the “Company”) issued a press release announcing that its joint venture with Cerberus Capital Management, INK Acquisition, LLC (the “Innkeepers JV”), is offering for sale the 51-hotel, 6,847 room portfolio owned by the Innkeepers JV. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein.
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.
Item 8.01 Other Events
On January 24, 2014, the Company announced that the Innkeepers JV is offering for sale the 51-hotel, 6,847 room portfolio owned by the Innkeepers JV. The Company holds a 10.3% minority interest in the Innkeepers JV.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. | Description | |
99.1 | Press release dated January 24, 2014 | |
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 | ||||
January 24, 2014 | By: | Dennis M. Craven | ||
Name: Dennis M. Craven | ||||
Title: Executive Vice President and Chief Financial Officer | ||||
Exhibit Index
Exhibit No. | Description | |
99.1 | Press release dated January 24, 2014 | |
For Immediate Release | Exhibit 99.1 | |
Contact:
Jerry Daly | Dennis Craven | |
Daly Gray Public Relations | Chief Financial Officer | |
jerry@dalygray.com | dcraven@cl-trust.com | |
(703) 435-6293 | (561) 227-1386 | |
Chatham Lodging Trust Announces Marketing of Joint Venture Hotel Portfolio
PALM BEACH, Fla., January 24, 2014-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 the Chatham/Cerberus joint venture is offering for sale the 51-hotel, 6,847 room Innkeepers portfolio. Eastdil Secured is exclusive advisor for the offering.
The offering represents a rare opportunity to own a highly-diversified portfolio of newly renovated hotels that are supported by superior locations, leading brands, strong property performance, substantial recent capital investment and compelling, long-term value enhancement opportunities. The portfolio is being offered unencumbered by management contracts and has a $950 million interest-only loan in place with a floating interest rate of LIBOR + 4.8 percent that is assumable subject to certain conditions.
The portfolio benefits from $171 million in capital expenditures since 2007 or approximately $25,000 per room. Operating performance has been strong in 2013 with estimated RevPAR growth of 5.5 percent, a RevPAR penetration index of 129 and estimated EBITDA of approximately $101 million.
“Having owned or operated the portfolio for quite some time, we know these hotels very well, its results are very strong, and with industry experts projecting attractive growth in the future, we would expect the portfolio to continue to produce great results” said Jeffrey H. Fisher, Chatham’s chief executive officer. “The joint venture has already returned 92 percent of our original capital investment, so if a sale occurs, the potential value that may accrue to Chatham because of our promote interest could be meaningful.”
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 77 hotels totaling 10,686 rooms/suites, comprised of 25 hotels it wholly owns with an aggregate of 3,591 rooms/suites in 15 states and the District of Columbia and holds a minority investment in two joint ventures that own 52 hotels with an aggregate of 7,095 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.