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): November 16, 2017 (November 15, 2017)
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.) |
222 Lakeview Avenue, Suite 200 West Palm Beach, Florida | 33401 |
(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)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b.2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 7.01 Regulation FD Disclosure.
On November 15, 2017, Chatham Lodging Trust (the "Company") issued a press release announcing that it has acquired the 96-room Courtyard by Marriott Charleston Summerville, S.C., for $20.2 million, or approximately $210,000 per room plus customary pro-rated amounts and closing costs.
A copy of such press release is furnished as Exhibit 99.1 to this report.
Item 9.01 Financial Statements and Exhibits.
Press Release of the Company, dated November 15, 2017, furnished under Item 7.01.
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.
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 | ||||
November 16, 2017 | By: | /s/ Jeremy B. Wegner | ||
Name: Jeremy B. Wegner | ||||
Title: Senior Vice President and Chief Financial Officer | ||||
Exhibit Index
Exhibit No. | Description | |
Press release dated November 15, 2017 (furnished pursuant to Item 7.01) | ||
For Immediate Release | Exhibit 99.1 |
Contact: | |
Dennis Craven (Company) | |
Chief Operating Officer | |
(561) 227-1386 | |
Chatham Lodging Acquires Hotel in Greater Charleston, S.C.
WEST PALM BEACH, Fla., November 15, 2017-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 acquired the 96-room Courtyard by Marriott Charleston Summerville, S.C., for $20.2 million, or approximately $210,000 per room.
“This is a high-quality hotel located in Nexton, an emerging mixed-use community that sits in the heart of a rapidly expanding area just outside of Charleston,” said Jeffrey H. Fisher, Chatham’s chief executive officer and president. “This hotel, as well as the adjacent, under-construction, 96-room Residence Inn by Marriott which we also have under contract to acquire upon opening in the 2018 second quarter, is well-located within the Nexton community. Nexton is projected to encompass approximately 10,000 homes, eight million commercial square feet and a medical campus over the next decade.
“Volvo is constructing its first American factory, a state-of-the-art, 2.3-million-square-foot facility on nearly 3,000 acres very close to Nexton that will employ approximately 2,000 people and is projected to manufacture 100,000 cars per year. Our hotels will be the nicest and closest hotels to the new factory. This is a thriving area with a lot of upside,” Fisher highlighted. “Other major companies, such as Daimler and Boeing, have significant facilities in the area and have acquired additional land to expand their operations.”
Opened in October 2014, the Courtyard Charleston Summerville’s quality and design far exceed prototype standards due to the strict building requirements within the Nexton community and will need essentially no additional capital for at least four years.
South Carolina has been one of the fastest growing states in the country over the last five years due to the relocation of major corporations, as well as corporate investment and expansion. The state has one of the highest migration rates in the country for in-bound, college graduates under the age of 40. South Carolina’s 2016 population growth was double the national average. In the greater Charleston area, corporate demand is well-diversified with the area home to companies within the aerospace, automotive, bioscience, marine and distribution industries. Additionally, the area is home to over 250 technology companies employing more than 11,000 employees which has helped to support the region’s new nickname, “Silicon Harbor.”
“Most people think of Charleston as a purely leisure market, and it has been ranked the top tourist town by Conde Nast for the past five years,” commented Dennis Craven, Chatham’s chief operating officer. “However, South Carolina, and more specifically the greater Charleston area, already has experienced significant economic expansion and is going to see much more in the future. This hotel, as well as the acquisition of the under-construction adjacent hotel next year, are expected to realize higher top-line growth in the future tied to corporate demand.”
Chatham funded the purchase through available cash from its recently completed 5,000,000 share offering that raised approximately $109 million dollars. The hotel will be managed by Island Hospitality Management, which is 51 percent owned by Fisher. Chatham estimates it acquired the property at a year one net operating income capitalization rate of approximately eight percent.
About Chatham Lodging Trust
Chatham Lodging Trust is a self-advised, publicly-traded real estate investment trust focused primarily on investing in upscale extended-stay hotels and premium-branded, select-service hotels. The company owns interests in 135 hotels totaling 18,437 rooms/suites, comprised of 40 properties it wholly owns with an aggregate of 5,939 rooms/suites in 16 states and the District of Columbia and a minority investment in two joint ventures that own 95 hotels with an aggregate of 12,498 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.