Market Overview

Chatham Lodging Acquires Brand New Residence Inn Charleston Summerville, S.C.


Chatham Lodging Trust (NYSE:CLDT), a hotel real estate investment trust
(REIT) focused on investing in upscale, extended-stay hotels and
premium-branded, select-service hotels, today announced that it has
acquired the 96-room Residence Inn by Marriott Charleston Summerville,
S.C., for $20.8 million, or approximately $217,000 per room.

"This is a beautiful, brand new, superior-quality hotel located in
Nexton, a rapidly expanding area just outside of Charleston which sits
in the direct path of metro Charleston's most energetic growth," said
Jeffrey H. Fisher, Chatham's chief executive officer and president.
"Including the Courtyard by Marriott Charleston Summerville, this marks
our second hotel in the heart of Nexton, a thriving community which
mixes a smart, vibrant blend of businesses, schools, new homes,
apartments, shops and eateries connected to each other by trails, parks
and nature, and connected to the world through leading-edge technology.

"Volvo has completed construction of its first American factory, a
state-of-the-art, 2.3-million-square-foot facility on nearly 3,000 acres
very close to Nexton that is expecting its first cars to come off the
production line in the next few months. Additionally and importantly for
continued economic expansion in the area, Volvo has already announced
plans to expand the facility with a second production line with
completion estimated in 2020," Fisher highlighted. "Our two hotels are
the nicest and closest hotels to the new factory and are best positioned
to service corporate guests given the mix of rooms and suites at our
Courtyard and Residence Inn hotels. Given the recent run-up in
construction costs, we already are acquiring this hotel below
replacement cost, and operationally, we are able to leverage our
operating expenses across two adjacent hotels which should generate
higher than underwritten returns."

South Carolina has been one of the fastest growing states in the country
over the last five years due to the relocation of major corporations, as
well as corporate investment and expansion. The state has one of the
highest migration rates in the country for in-bound, college graduates
under the age of 40. In the greater Charleston area, corporate demand is
well-diversified with the area home to companies within the aerospace,
automotive, bioscience, marine and distribution industries.
Additionally, the region is home to over 250 technology companies
employing more than 11,000 employees. Specifically, Nexton is projected
to encompass approximately 10,000 homes, eight million commercial square
feet and a medical campus over the next decade. In addition to the
nearby Volvo facility, other major companies, such as Daimler and
Boeing, have significant facilities in the area and have acquired
additional land to expand their operations.

Chatham funded the purchase using available cash and borrowings on its
unsecured credit facility. The hotel will be managed by Island
Hospitality Management, which is 51 percent owned by Fisher. Chatham
estimates it acquired the property at a year two net operating income
capitalization rate of approximately eight percent.

About Chatham Lodging Trust

Chatham Lodging Trust is a self-advised, publicly-traded real estate
investment trust focused primarily on investing in upscale,
extended-stay hotels and premium-branded, select-service hotels. The
company owns interests in 136 hotels totaling 18,616 rooms/suites,
comprised of 41 properties it wholly owns with an aggregate of 6,117
rooms/suites in 15 states and the District of Columbia and a minority
investment in two joint ventures that own 95 hotels with an aggregate of
12,499 rooms/suites. Additional information about Chatham may be found

This press release may contain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995
about Chatham Lodging Trust, including statements regarding future
plans, strategies, performance, acquisitions, capital expenditures,
future operating results and the timing and composition of revenues,
among others, and statements containing words such as "expects,"
"believes" or "will," which indicate that those statements are
Except for historical information, the matters
discussed in this press release are forward-looking statements that are
subject to certain risks and uncertainties that could cause the actual
results or performance to differ materially from those discussed in such
Additional risks are discussed in the company's
filings with the Securities and Exchange Commission.

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