Chatham Lodging Updates RevPAR Forecast for Fourth Quarter Outperformance

Strong RevPAR Growth Across Portfolio, Boosted by Boston Area Demand

WEST PALM BEACH, Fla.–(BUSINESS WIRE)–Chatham Lodging Trust (NYSE: CLDT), a lodging real estate investment
trust (REIT) that invests in upscale, extended-stay hotels and
premium-branded, select-service hotels and owns 137 hotels wholly or
through joint ventures, today announced preliminary room revenue and
room revenue per available room (“RevPAR”) results for the quarter ended
December 31, 2018.

  Previous Q4 2018   Current Q4 2018
    Outlook as of 10/31/18   Outlook as of 1/10/19
Room revenue   $65.5 to $67.0 million   $69 million
RevPAR   $119-$121   $125
RevPAR growth   -1% to +1%   4%

“We significantly outperformed our RevPAR expectations since our
earnings announcement in October and produced strong fourth quarter
RevPAR growth of 4 percent at our 40 comparable hotels,” highlighted
Dennis Craven, Chatham’s chief operating officer. “Although we do not
have our December net income results, we expect that our adjusted funds
from operations (“AFFO”) and AFFO per share will exceed the upper-end of
our guidance range. Demand jumped meaningfully at three of our Boston
area hotels, driven by business related to the gas explosions in the
north Boston area in September that displaced many residents. The room
demand was expected to be short-term, but ultimately extended into
December. Island Hospitality did a great job quickly assessing demand in
the area and securing the business through its deep relationships in the
market. These three hotels generated approximately $1.5 million in
incremental room revenue in the quarter above our forecast.

“RevPAR grew 1.5 percent across our remaining 37 comparable hotels,
solidly above our expectations for those hotels, and if you exclude our
four Houston hotels where RevPAR declined 13 percent due to difficult
comparisons to the prior year related to demand from Hurricane Harvey,
fourth quarter RevPAR was up almost three percent. The overall portfolio
performance is very encouraging, and the boost from our Boston hotels
enabled us to produce an outstanding quarter and strong finish to 2018,”
Craven concluded.

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 137 hotels totaling 18,783 rooms/suites,
comprised of 42 properties it wholly owns with an aggregate of 6,283
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
12,500 rooms/suites. Additional information about Chatham may be found
at chathamlodgingtrust.com.

Contacts

Dennis Craven (Company)
Chief Operating Officer
(561) 227-1386