Chatham Lodging Completes Acquisition of the Hyatt Place Downtown Pittsburgh
Chatham Lodging Completes Acquisition of the Hyatt Place Downtown Pittsburgh
PALM BEACH, Fla.--(BUSINESS WIRE)-- Chatham Lodging Trust (NYS: 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 completed its acquisition of the 178-room Hyatt Place® Pittsburgh/North Shore in Pittsburgh, Pa., for a 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 Heinz Field (home of the Pittsburgh Steelers), and near such attractions as the Andy Warhol Museum, the Carnegie Science Center and the National Aviary. The Pittsburgh Hyatt Place also is proximate to Fortune 500 employers such as Alcoa, Del Monte Foods, PNC Financial, U.S. Steel and Heinz.
"This is a stunning, high quality hotel in a fantastic location in downtown Pittsburgh and represents our first Hyatt branded hotel in the Chatham portfolio," said Jeffrey H. Fisher, Chatham's chief executive officer. "We source the majority of our acquisitions privately, which improves pricing and enables us to pass on incremental value to our shareholders. This acquisition aligns perfectly with our strategy of acquiring premium-branded, upscale extended stay and select-service hotels in high demand markets that command high daily rates and revenue. Average daily rate at the Pittsburgh Hyatt place is expected to be approximately $163 in 2013, well above our current portfolio rate, and we expect to improve the operating performance of the hotel in 2013 with better revenue and profit performance."
The Pittsburgh Hyatt Place is managed by Island Hospitality Management (IHM), which is 90 percent owned by Fisher. Chatham funded the purchase with borrowings on its secured revolving credit facility and a $24.2 million fixed rate, first-mortgage loan. The 10-year loan was provided by Barclays Bank, plc. The loan carries a fixed interest rate of 4.65 percent per annum, with principal and interest based on a 30-year amortization.
Chatham will update its guidance to reflect the Pittsburgh Hyatt Place acquisition, the 4,500,000 common share equity offering and the mortgage financing in conjunction with its second quarter 2013 earnings announcement.
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 73 hotels acquired for approximately $1.5 billion, comprised of 21 hotels it wholly owns with an aggregate of 2,911 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.
Daly Gray Public Relations
Jerry Daly, 703-435-6293
jerry@dalygray.com
or
Chatham Lodging Trust
Dennis Craven, 561-227-1386
Chief Financial Officer
dcraven@cl-trust.com
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