Posted on Monday, February 7, 2011
Palm Beach-based hotel real estate investment trust Chatham Lodging Trust said Wednesday that it is preparing a public offering of 4 million shares.
Chatham also said it expects to grant underwriters a 30-day option to purchase up to 600,000 additional common shares.
Chatham said it intends to use the net proceeds of the offering to repay debt under its secured revolving credit facility, to acquire additional hotels and for general business purposes. The company said Monday that it had a contract to buy an extended-stay hotel in Pittsburgh for $24.9 million.
Chatham (NYSE: CLDT) shares trade for about $16.50.
The company owns 13 hotels with a total of 1,650 rooms in nine states.
Polyana da Costa, DAILY BUSINESS REVIEW