Chatham Lodging Trust Announces Exercise of Underwriters' Overallotment Option to Purchase Additional Shares

PALM BEACH, Fla., April 20 /PRNewswire/ -- Chatham Lodging Trust (the Company) (NYSE: CLDT) today announced the full exercise of the underwriters' overallotment option to purchase an additional 1,125,000 of the Company's common shares of beneficial interest at the initial public offering (IPO) price of $20.00 per share, less the underwriting discount.  The overallotment option was exercised in connection with the Company's IPO of 7,500,000 common shares, which priced on April 15, 2010.

Total proceeds from the IPO, including the overallotment option, are $160.4 million after deducting the full amount of the underwriting discount, including that portion of the underwriting discount that the underwriters have agreed to defer until the Company has used a specified portion of the offering proceeds to acquire hotel properties.  The purchase of the shares pursuant to the IPO, including the shares purchased pursuant to the exercise of the overallotment option, is expected to close on April 21, 2010.

The Company will contribute the net proceeds of the offering to its operating partnership, which will use $73.5 million of the net proceeds to purchase six Homewood Suites by Hilton® hotels.  The Company's operating partnership will use the remaining net proceeds to invest in hotel properties in accordance with the Company's investment strategy and for general business purposes.

A registration statement relating to the offering of the Company's common shares discussed above was declared effective by the Securities and Exchange Commission on April 15, 2010.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Barclays Capital and FBR Capital Markets are acting as the joint book-running managers for the offering.  Morgan Keegan & Company, Inc. and Stifel Nicolaus are acting as senior co-managers and Credit Agricole CIB and JMP Securities are acting as co-managers.  A copy of the prospectus can be obtained by contacting Barclays Capital, c/o Broadridge, Integrated Distribution Services, 1155 Long Island Ave., Edgewood, N.Y. 11717, telephone (888) 603-5847 or by e-mail at [email protected], or FBR Capital Markets, Prospectus Department, 1001 18th Street, North, Arlington, Va. 22209 or by e-mail at [email protected].  The prospectus may also be obtained by contacting any of the other underwriters listed above.

WARNING REGARDING FORWARD-LOOKING STATEMENTS

THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER FEDERAL SECURITIES LAWS. THESE FORWARD-LOOKING STATEMENTS ARE BASED UPON THE COMPANY'S PRESENT EXPECTATIONS, BUT THESE STATEMENTS ARE NOT GUARANTEED TO OCCUR. FOR EXAMPLE: THE FACT THAT THIS OFFERING HAS PRICED MAY IMPLY THAT THE OFFERING WILL CLOSE; BUT THE CLOSING IS SUBJECT TO CONDITIONS CUSTOMARY IN TRANSACTIONS OF THIS TYPE AND MAY BE DELAYED OR MAY NOT OCCUR AT ALL. INVESTORS SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD-LOOKING STATEMENTS.

SOURCE Chatham Lodging Trust

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