Chatham Lodging Trust (CLDT)

This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs:   Globe Specialty Metals   •   LogMeIn   •   Invesco Mortgage Capital   •   Medidata   •   Chemspec

 

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Caleb Li

Chatham Lodging Trust (CLDT) (NYSE:CLDT) is a real estate investment trust that plans to invest in extended-stay hotels and self-service hotels. Some brands include Residence Inn by Marriott, Homewood Suites by Hilton, and Summerfield Suites by Hyatt. It plans to invest in hotels in the top 25 metropolitans in the United States. Due to the current market conditions, the company intends to take advantage of attractive opportunities to acquire high quality hotels at a low price due to the market conditions. As the market and economy improves, the valuations of the hotels are expected to rise. ^[1]

The company has agreed to purchase six hotels from RLJ Development, LLC for a total price of $73.5 million. These hotels are under the brand name Homewood Suites by Hilton. The reliance on third-party management companies to operate these hotels poses a risk. If Chatham Lodging Trust's management believes the hotels are operating inefficiently, the management team may not be able to force the third-party management company to change its strategy. ^[1]

The company's initial public offering of stock filed on the NYSE and went public on 15 April 2010. The stock was priced at $20.00, which was the expected price. The total amount raised was $150 million by offering 7.5 million shares. ^[1]

This is a pre-revenue company, and the company estimates the net proceeds from the offering to be $135 million after underwriting fees. The company plans to invest $11 million in the next two years in order to renovate and improve six initial hotels it is acquiring. ^[1]

References

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