HotelNewsNow.com updates the performance of publicly traded hotel companies each week. Following are the updates for: Ashford Hospitality Trust and Chatham Lodging Trust.
Baird/STR Hotel Stock Index
The Baird/STR Hotel Stock Index closed Thursday at 2199.42. It was at 2211.02 as of 10 a.m. (eastern) Friday.
Ashford Hospitality Trust
Dallas-based Ashford Hospitality Trust (NYSE: AHT) priced its offering of 7 million shares of common stock at US$12.50 per share.
Proceeds from the offering will be used to repay borrowings under its senior credit facility, for general corporate purposes (including future hotel buys, capital expenditures, working capital, and repayment of debt or other obligations.)
Ashford’s stock closed Thursday at US$12.45 per share, up 29.02% year-to-date.
Chatham Lodging Trust
Chatham Lodging Trust (NYSE: CLDT) will acquire from Innkeepers USA Trust interests in 69 premium-branded hotels, most of which were recently renovated.
The Palm Beach, Florida-based real-estate investment trust will invest approximately US$232 million in the transactions, consisting of US$195 million in an outright purchase of five of the hotels and a US$37-million acquisition of a 9.2% interest in a joint venture with affiliates of Cerberus Capital Management that will acquire 64 of the hotels for approximately US$1.13 billion.
Chatham’s stock closed Thursday at US$16.11 per share. Year-to-date, the stock is down 6.61%.
Chesapeake Lodging Trust
Chesapeake Lodging Trust (NYSE: CHSP) of Annapolis, Maryland, has closed on a US$95-million fixed-rate mortgage loan secured by the 498-room Regency Boston.
The five-year loan was provided by Goldman Sachs Commercial Mortgage Capital and carries an annual rate of 5%. Proceeds will be used to repay outstanding borrowings and for general business purposes, including acquisitions.
The REIT’s stock price closed Thursday at US$17.06 per share, down 9.3% year-to-date.
Strategic Hotels & Resorts
Chicago-based Strategic Hotels & Resorts has closed a US$300-million revolving credit facility. Borrowing capacity for the facility could be raised to US$400 million.
The facility is secured by the Four Seasons Punta Mita, Marriott Lincolnshire, Ritz-Carlton Half Moon Bay and Ritz-Carlton Laguna Niguel hotels. The Ritz-Carlton Half Moon Bay was previously encumbered by a US$76.5-million loan, which was repaid on 29 June 2011. The company also unencumbered the Four Seasons Washington, D.C., which was security for the previous credit facility, in anticipation of executing a single-asset mortgage financing on the property to be completed in the third quarter.
The company’s stock price closed Thursday at US$7.08 per share. Year-to-date, the stock is up by approximately 35%.