Chatham, Cerberus Close $1.02 Bln Buy of 64 Innkeepers Hotels

Chatham Lodging Trust and Cerberus Capital Management said Thursday that they have completed their buy of 64 hotels of Innkeepers USA Trust. The total gross purchase price was about $1.02 billion. Cerberus/Chatham were locked in a bitter dispute with Innskeeper USA Trust for two months after backing out of a deal to buy the hotels at a higher price.


Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) focused on investing in premium-branded, select-service hotels, and affiliates of Cerberus Capital Management, L.P., a private investment firm, today announced that they have completed the acquisition of 64 hotels from affiliates of Innkeepers USA Trust.

The joint venture between Cerberus and Chatham acquired the 64 hotels, aggregating 8,329 rooms, for a total gross purchase price of approximately $1.02 billion, including the assumption of approximately $675 million of mortgage debt on 45 of the hotels with a weighted average interest rate of 6.71 percent and maturing in 2017. The other 19 hotels are unencumbered. The purchase price per room, net of cash reserves, was approximately $118,000 per room/suite.

Chatham owns an approximate 10.3 percent interest in the joint venture and funded its $37 million investment in the joint venture with borrowings under its senior secured revolving credit facility. Chatham will provide certain asset management services to the joint venture and will receive a promote interest based on meeting certain return thresholds. All costs of operating the joint venture will be paid by the joint venture.

All but one of the 64 acquired hotels will continue to be managed by Island Hospitality Management, a hotel management company that is 90 percent owned by Jeffrey H. Fisher, Chatham’s chief executive officer and president.

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 currently owns 18 hotels with an aggregate of 2,414 rooms/suites in 10 states and the District of Columbia, holds a minority investment in a joint venture that owns 64 hotels with 8,329 rooms/suites and has one additional hotel comprising 174 rooms/suites under contract to purchase. Additional information about Chatham may be found at

Forward-Looking Statement Safe Harbor

Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “plan,” “predict,” “project,” “will,” “continue” and other similar terms and phrases, including references to assumption and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, and include, but are not limited to: national and local economic and business conditions, including the effect on travel of potential terrorist attacks, that will affect occupancy rates at the company’s hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of the company’s indebtedness and its ability to meet covenants in its debt agreements; relationships with property managers; the company’s ability to maintain its properties in a first-class manner, including meeting capital expenditure requirements; the company’s ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; the company’s ability to complete acquisitions and dispositions; and the company’s ability to continue to satisfy complex rules in order for the company to remain a REIT for federal income tax purposes and other risks and uncertainties associated with the company’s business described in the company’s filings with the SEC. Although the company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of October 27, 2011, and the company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

Fact Sheet
Hotels Acquired by Cerberus-Chatham Lodging Trust Joint Venture

#                 Hotel           Location           State

1                 Boston Bulfinch           Boston           MA           79
2                 Courtyard by Marriott           Ft. Lauderdale           FL           136
3                 Courtyard by Marriott           Atlantic City           NJ           206
4                 Courtyard by Marriott           Montvale           NJ           184
5                 Embassy Suites           Santa Clarita           CA           156
6                 Gatehouse Suites           Indianapolis           IN           88
7                 Gatehouse Suites           East Lansing           MI           60
8                 Gatehouse Suites           Grand Rapids           MI           96
9                 Gatehouse Suites           Troy           MI           152
10                 Hampton Inn           Naples           FL           107
11                 Hampton Inn           Westchester           IL           112
12                 Hampton Inn           Louisville           KY           173
13                 Hampton Inn           Woburn           MA           99
14                 Hampton Inn           Columbia           MD           83
15                 Hampton Inn           Germantown           MD           178
16                 Hampton Inn           Islandia           NY           120
17                 Hampton Inn           Willow Grove           PA           150
18                 Hyatt Summerfield Suites           Belmont (Silicon Valley)           CA           132
19                 Hyatt Summerfield Suites           El Segundo           CA           122
20                 Hyatt Summerfield Suites           Mt. Laurel           NJ           116
21                 Hyatt Summerfield Suites           Dallas (Addison )           TX           132
22                 Hyatt Summerfield Suites           Dallas (Las Colinas)           TX           148
23                 Residence Inn by Marriott           Fremont (Silicon Valley)           CA           80
24                 Residence Inn by Marriott           Mountain View (Silicon Valley)           CA           112
25                 Residence Inn by Marriott           Ontario           CA           200
26                 Residence Inn by Marriott           San Jose (Silicon Valley)           CA           80
27                 Residence Inn by Marriott           San Jose (Silicon Valley)           CA           150
28                 Residence Inn by Marriott           San Mateo (Silicon Valley)           CA           160
29                 Residence Inn by Marriott           Sunnyvale (Silicon Valley)           CA           231
30                 Residence Inn by Marriott           Sunnyvale (Silicon Valley)           CA           247
31                 Residence Inn by Marriott           Denver           CO           159
32                 Residence Inn by Marriott           Denver (Englewood)           CO           128
33                 Residence Inn by Marriott           Shelton           CT           96
34                 Residence Inn by Marriott           Windsor           CT           96
35                 Residence Inn by Marriott           Altamonte Springs           FL           128
36                 Residence Inn by Marriott           Atlanta           GA           160
37                 Residence Inn by Marriott           Atlanta (Norcross)           GA           120
38                 Residence Inn by Marriott           Chicago (O’Hare)           IL           192
39                 Residence Inn by Marriott           Lexington           KY           80
40                 Residence Inn by Marriott           Louisville           KY           96
41                 Residence Inn by Marriott           Gaithersburg           MD           132
42                 Residence Inn by Marriott           Portland           ME           78
43                 Residence Inn by Marriott           Detroit (Livonia)           MI           112
44                 Residence Inn by Marriott           Troy (Madison Heights)           MI           96
45                 Residence Inn by Marriott           Cherry Hill           NJ           96
46                 Residence Inn by Marriott           Saddle River           NJ           174
47                 Residence Inn by Marriott           Binghamton           NY           72
48                 Residence Inn by Marriott           Harrisburg           PA           122
49                 Residence Inn by Marriott           Dallas (Addison )           TX           150
50                 Residence Inn by Marriott           Dallas (Arlington)           TX           114
51                 Residence Inn by Marriott           Richmond           VA           104
52                 Residence Inn by Marriott           Richmond           VA           80
53                 Residence Inn by Marriott           Bellevue           WA           120
54                 Residence Inn by Marriott           Bothell           WA           120
55                 Residence Inn by Marriott           Lynnwood           WA           120
56                 Residence Inn by Marriott           Seattle           WA           144
57                 Sheraton           Rockville           MD           154
58                 Sheraton Four Points           Ft. Walton Beach           FL           216
59                 Stay Inn           Lombard           IL           128
60                 Stay Inn           Schaumburg           IL           128
61                 Stay Inn           Ft. Wayne           IN           80
62                 Stay Inn           Albany           NY           126
63                 Towne Place Suites by Marriott           Horsham           PA           95
64                 Westin           Morristown           NJ           224