Chatham Lodging Raises Dividend 25 Percent

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 its Board of Trustees has voted to raise its monthly dividend by 25 percent, or $0.02 per share. On an annualized basis, the dividend will increase $0.24 to $1.20 per share, compared to $0.96 in 2014.

“We have raised our annual dividend each year since our 2010 IPO, from $0.35 in 2010 to $1.20 per share for 2015, an increase of 243 percent and a testament to the strong cash flow that our platform is generating,” highlighted Jeffrey H. Fisher, Chatham’s chief executive officer and president. “We are gratified that our Board of Trustees has the confidence to increase our monthly dividend once again, reflecting our strong 2014 performance and significant portfolio growth, making more than $500 million of hotel investments and catapulting our owned and joint venture assets to more than $3 billion. We will continue building Chatham to be the premier, select-service hotel REIT by accumulating a superior portfolio of investments financed with the right balance of equity and debt that will appreciate in value and generate strong cash flow which will enable us to reward our investors with an attractive and dependable dividend.”

“We have stated since our IPO that we would increase our dividend in tandem with growth in cash flow, EBITDA and adjusted FFO per share,” commented Dennis Craven, Chatham’s chief financial officer. “Since 2010, adjusted FFO per share has increased by approximately 30 percent per annum, and we expect continued strong growth in 2015, giving us the confidence to support this significant increase and maintain a healthy and prudent FFO per share payout ratio.”

Chatham’s Board declared the company’s first monthly common share dividend of $0.10 for January 2015, reflecting the 25 percent increase. The common share dividend is payable February 27, 2015, to shareholders of record on January 30, 2015. The annualized dividend of $1.20 per common share represents a dividend yield of 3.9 percent, based on the company’s common share closing price of $30.54 on January 9, 2015.

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 owns interests in 130 hotels totaling 17,858 rooms/suites, comprised of 34 hotels it wholly owns with an aggregate of 5,115 rooms/suites in 15 states and the District of Columbia and a minority investment in three joint ventures that own 96 hotels with an aggregate of 12,743 rooms/suites. Additional information about Chatham may be found at www.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.

Contacts:

(Media)
Daly Gray Public Relations
Jerry Daly, 703-435-6293
jerry@dalygray.com
or
(Company)
Chatham Lodging Trust
Chief Financial Officer
Dennis Craven, 561-227-1386
dcraven@cl-trust.com

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