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Chatham Lodging Trust Announces Special Dividend of $0.08 on Sale of JV

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Chatham Lodging Trust (NYSE: CLDT) today announced a joint venture comprised of affiliates of Cerberus Capital Management LP and Chatham sold its interests in the Residence Inn by Marriott Torrance, Calif. Chatham realized a gain on the sale of approximately $3.6 million, subject to certain minor post-closing settlements. Following the transaction`s consummation, Chatham`s board of trustees declared a special, one-time common dividend of $0.08 per share that will be treated as received by shareholders for tax purposes in 2016, but will be applied by Chatham against its 2015 taxable income. Chatham owned a five percent interest in the joint venture.

"Since April 2013, we invested $1.6 million into the partnership that acquired the Residence Inn Torrance, Calif., re-developed the gatehouse into a state-of-the-art facility and significantly enhanced occupancy and room rate. The sale generated a sizable gain on our investment due to our promoted interest in the joint venture," highlighted Dennis Craven, Chatham`s chief operating officer. "This was a highly successful investment, realizing an internal rate of return of almost 100 percent and unlocking value for our shareholders through the monetization of our minority investment. Our intention is to pay-out 100 percent of our taxable income via dividends, and this special dividend rewards our shareholders after another great investment."

The special dividend is payable January 29, 2016, to shareholders of record on January 15, 2016.

Posted-In: News Dividends Asset Sales Press Releases

 

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