Chesapeake Lodging Trust Reports Third Quarter Results; Pro Forma RevPAR Increased 8.9% and Pro Forma Adjusted Hotel EBITDA Margin Increased 200 Basis Points
ANNAPOLIS, Md.–Nov. 1, 2012– Chesapeake Lodging Trust (NYSE:CHSP), a lodging real estate investment trust (REIT), reported today its financial results for the quarter ended September 30, 2012.
– Pro Forma RevPAR ? 8.9% increase for comparable 10-hotel portfolio over the same period in 2011.
– Pro Forma Adjusted Hotel EBITDA Margin ? 200 basis point increase for comparable 10-hotel portfolio over the same period in 2011.
– Acquisitions ? Acquired the 520-room W Chicago ? Lakeshore in Chicago, Illinois for $126.0 million and the 429-room Hyatt Regency Mission Bay Spa and Marina in San Diego, California for $62.0 million; Subsequent to quarter end, acquired the 222-room The Hotel Minneapolis in Minneapolis, Minnesota for $46.0 million.
– Renovations ? Successfully completed the comprehensive renovation and repositioning of the Hotel Adagio; Subsequent to quarter end, completed the 35-room expansion at the W Chicago ? City Center.
– Equity offerings ? Successfully completed a $125 million preferred share offering and $138 million common share offering.
– Financings ? Closed on $130 million of secured financings; Subsequent to quarter end, amended our revolving credit facility, increasing facility size, reducing cost of borrowings, and extending the initial term.
[quote]?We are very pleased with the strong performance of our hotel portfolio and the significant progress we made on various fronts in the third quarter,? said James L. Francis, Chesapeake Lodging Trust?s President and Chief Executive Officer. ?The favorable execution and timing of the preferred and common share offerings allowed us to continue to take advantage of opportunities by acquiring three hotels we believe possess significant upside. Furthermore, the completion of our transformational renovation at the Hotel Adagio has given it a unique and sophisticated style and we are already starting to see promising results.? ?Our recent financing activity, including the amendment to our revolving credit facility, strengthened our balance sheet by allowing us to extend maturities, take further advantage of the attractive interest rate environment by lowering our cost of borrowing, and adding flexibility and additional capacity for future acquisition opportunities,? said Douglas W. Vicari, Chesapeake Lodging Trust?s Executive Vice President and Chief Financial Officer.[/quote]