Chatham Lodging Trust expands credit facility to $500 million

WEST PALM BEACH, Fla. - Chatham Lodging Trust (NYSE:CLDT), a hotel REIT with a market capitalization of $349 million and currently trading below its InvestingPro Fair Value, has secured an expanded credit agreement that increases its total borrowing capacity to $500 million, the hotel real estate investment trust announced in a press release.

The new credit facility includes a senior unsecured revolving loan that has been increased from $260 million to $300 million and a senior unsecured term loan expanded from $140 million to $200 million. The agreement includes an accordion feature that allows the total facility to be increased to $650 million. This expansion comes as the company maintains a total debt of $371.6 million and a debt-to-capital ratio of 0.49.

Set to mature in September 2029, the facility includes options to extend the maturity by 12 months, subject to certain conditions. The revolving loan bears interest at a rate ranging from 1.5 to 2.25 percent over the applicable adjusted term SOFR, currently at 1.6 percent. The term loan carries interest from 1.45 to 2.2 percent over SOFR, representing a 0.1 percent decrease from the previous facility.

"We have great financial flexibility to enhance shareholder value using a variety of options," said Jeremy Wegner, Chatham’s chief financial officer, according to the press release. The company currently offers a 5.2% dividend yield and has shown a 28.6% dividend growth over the last twelve months. According to InvestingPro, the company has multiple favorable valuation metrics, with 6 additional ProTips available for subscribers.

The transaction was arranged by Bank of America Securities, Wells Fargo Securities, Capital One, Regions Capital Markets and Truist Securities, with JPMorgan Chase Bank and Royal Bank of Canada also participating as lenders.

Chatham Lodging Trust owns 34 hotels with 5,166 rooms/suites across 15 states and the District of Columbia. The company focuses on upscale, extended-stay hotels and premium-branded, select-service hotels. With annual revenue of $310.1 million and an EBITDA of $90.3 million, detailed analysis of the company’s performance is available in the comprehensive Pro Research Report on InvestingPro, alongside 1,400+ other US stocks.

In other recent news, Chatham Lodging Trust reported its Q2 2025 earnings, revealing stronger-than-expected financial results. The company achieved earnings per share (EPS) of $0.07, which was 40% higher than the forecasted $0.05. Additionally, revenue exceeded expectations, reaching $80.29 million compared to the anticipated $79.68 million. In another development, Chatham Lodging Trust announced that its board of trustees declared a quarterly common share dividend of $0.09 per share. The board also declared a quarterly preferred share dividend of $0.41406 per preferred share. Both dividends are scheduled to be payable on October 15, 2025, to shareholders of record as of September 30, 2025. These recent developments highlight Chatham Lodging Trust’s financial performance and shareholder returns.

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