PALM BEACH, FL—Chatham Lodging Trust has priced an underwritten public offering of 3.5 million common shares of beneficial interest (par value one cent per share) at a per share public offering price of $30, for total estimated gross proceeds of approximately $105 million.
The offering is expected to close on Jan. 27. Chatham also granted the underwriter a 30-day option to purchase up to an additional 525,000 common shares.
Barclays is acting as sole book-running manager for the offering.
The REIT will contribute the net proceeds of the offering to its operating partnership in exchange for common units of limited partnership interest in the operating partnership.
Chatham’s operating partnership intends to use a portion of the net proceeds to pay the $90 million purchase price for an upscale extended-stay hotel located in San Diego.
To the extent the company’s operating partnership does not use the net proceeds for this purpose, the REIT’s operating partnership intends to use the net proceeds for general corporate purposes, including other future hotel acquisitions, renovations and upgrades of guestrooms and common areas at number of the company’s hotels and the repayment of indebtedness.