Chatham Lodging Trust Closes on a Fixed-rate $20 Million First Mortgage Loan
May 1, 2013 - Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) that owns wholly or through its joint venture approximately $1.5 billion of premium-branded, upscale, extended-stay and select-service hotels, today announced that it has closed on a $20.0 million fixed-rate, first mortgage loan.
Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) that owns wholly or through its joint venture approximately $1.5 billion of premium-branded, upscale, extended-stay and select-service hotels, today announced that it has closed on a $20.0 million fixed-rate, first mortgage loan. The 10-year loan, which is secured by the 197-room Courtyard by Marriott Houston Medical Center hotel, was provided by Barclays Bank, plc. The loan carries a fixed interest rate of 4.18 percent per annum, with principal and interest based on a 30-year amortization.
Proceeds from the loan will be used to repay outstanding borrowings under the company's secured revolving credit facility. The company now has $40 million available under its $115 million revolving credit facility. “With long-term borrowing rates at historically low levels, we seek to take advantage of these market conditions using reasonable leverage to fund acquisitions, which enables us to lock in solid, long-term returns for our shareholders,” said Dennis Craven, Chatham's chief financial officer. “This financing gives us considerable flexibility to respond quickly and opportunistically to acquisition opportunities. It also further reduces the weighted average rate on our fixed-rate debt to a very attractive 5.05 percent and extends the weighted average maturity on our fixed-rate debt to 2021.”
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 75 hotels acquired for approximately $1.5 billion, comprised of 20 hotels it wholly owns with an aggregate of 2,733 rooms/suites in 11 states and the District of Columbia and holds a minority investment in a joint venture that owns 53 hotels with an aggregate of 7,026 rooms/suites.
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
