PALM BEACH, FL—Chatham Lodging Trust, a hotel real estate investment trust focused on investing in upscale extended-stay hotels and premium branded, select-service hotels, has closed on a new, expanded $250 million senior unsecured revolving credit facility.
The new unsecured revolving credit facility will mature in November 2020, which includes the option to extend the maturity by an additional year and replaces a $175 million secured credit facility that was scheduled to mature in 2016.
Participating lenders for the unsecured line of credit include Barclays Bank PLC, Regions Capital Markets, Citibank N.A., US Bank National Association, Wells Fargo Bank National Association, Bank of America N.A. and Citizens Bank N.A.
“This is a major milestone for Chatham as it further solidifies our balance sheet with only $6 million of debt maturing between now and late 2020, reduces our annual interest costs and provides us with capacity and flexibility to enhance shareholder value through a variety of opportunistic avenues,” said Dennis M. Craven, Chatham’s COO. “Chatham pays one of the highest annual dividends among lodging REITs, and our portfolio generates significant free cash flow. This new facility further cements our financial strength, enabling us to continue to reward our investors.”