PALM BEACH, FLORIDA Chatham Lodging Trust is planning another attempt at a share offering, slashing the offering by almost half from its last scuttled attempt in November.
Chatham, a REIT focused on upscale extended-stay hotels and premium-branded select-service hotels, is commencing an underwritten public offering of 4 million common shares. The company expects to grant the underwriters a 30-day option to purchase up to 600,000 additional common shares to cover overallotments, if any.
The company intends to use the net proceeds of the offering to repay debt under its secured revolving credit facility, to acquire additional hotels—including a previously announced unnamed extended-stay acquisition in Pittsburgh, Pennsylvania—and for general business purposes. Dates and pricing for the share offering have not been announced.
Chatham scrapped a planned public offering of 7 million common shares due to “unfavorable market conditions” back in November, causing its stock to drop 5.8% in two days.
Chatham owns 13 hotels with an aggregate of 1,650 guestrooms across nine states.