Chatham Lodging Trust Debt Issuance Clears Path Through 2025
01 Setembro 2023 - 10:00AM
Business Wire
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 issued approximately $83 million of
fixed-rate debt since mid-August, including $24.5 million maturing
in five years and $58.4 million maturing in ten years. The debt
issuance is comprised of five individual first mortgage loans.
“With these issuances and availability under our unsecured
credit facility, we have the ability to repay all debt due through
2024 and will only have to address one $19 million maturing
mortgage in 2025,” emphasized Dennis Craven, Chatham’s chief
operating officer. “We have great freedom to create value for our
shareholders, whether that is related to refinancing future debt,
acquiring/developing hotels or making other hotel investments.”
On August 16, 2023, two 10-year loans aggregating $39.9 million
were provided by Barclays Capital Real Estate and are secured by
the Residence Inn and TownePlace Suites Austin Northwest / The
Domain. The loans carry a fixed interest rate of 7.4 percent per
annum and are interest only for the first five years before
amortizing based upon a 30-year amortization schedule.
On August 30 and 31, 2023, respectively, a five-year, $24.5
million loan and two 10-year loans aggregating $18.5 million were
provided by Wells Fargo Bank. The five-year loan is secured by the
Courtyard by Marriott Dallas Downtown, carries a fixed interest
rate of 7.6 percent per annum and is interest only for the duration
of the loan. The 10-year loans are secured by the Courtyard by
Marriott and Residence Inn Charleston Summerville, South Carolina.
The 10-year loans carry a fixed interest rate of 7.3 percent per
annum and are interest only for the duration of the loan.
A portion of the proceeds from the loans will be used to repay
the approximate $41 million maturing mortgage on the Residence Inn
Bellevue, Wash., which will be repaid in September. The remaining
proceeds of approximately $42 million, combined with the full $260
million available on the unsecured credit facility, provide $302
million of proceeds to cover all 2024 maturing debt of $300
million.
“After reducing our net debt during the pandemic by
approximately 40 percent, second most among lodging REITs, we have
a great balance sheet that we were able to further solidify with
these loans,” stated Jeremy Wegner, Chatham’s chief financial
officer. “With encumbrances on only 14 of our 39 hotels after the
Bellevue repayment, we have ample flexibility to appropriately
address our maturities at the right time using the best capital
source.”
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 39 hotels totaling 5,915 rooms/suites in 16 states
and the District of Columbia. Additional information about Chatham
may be found at 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 those statements
regarding 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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version on businesswire.com: https://www.businesswire.com/news/home/20230901890852/en/
Dennis Craven (Company) Chief Operating Officer (561)
227-1386
Chris Daly (Media) Daly Gray Public Relations (703) 435-6293
Chatham Lodging (NYSE:CLDT)
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