Under the agreement, HG Vora Capital has withdrawn its three nominees for election to Chatham's Board of Trustees and agreed to certain customary standstill provisions with respect to the 2014 and 2015 annual meetings of shareholders.
PALM BEACH, FLA. – Chatham Lodging Trust, a hotel real estate investment trust (REIT) focused on investing in upscale extended-stay hotels and premium-branded select-service hotels, and HG Vora Capital, announced that they have resolved a potential proxy contest relating to this year’s shareholder meeting.
“Chatham is committed to maximizing shareholder value and appreciates the insight of its shareholders,” commented Jeffrey H. Fisher, Chatham’s president and chief executive officer. “We have assembled a high quality hotel investment portfolio by making disciplined acquisitions at very attractive pricing. We see strong growth rates continuing in the lodging industry and plan to opportunistically grow our portfolio as we build Chatham into the premier select-service and upscale extended-stay lodging REIT.”
“We are pleased with management’s decision to market for sale the Innkeepers portfolio, which would potentially monetize the company’s valuable ownership and promote interests in its joint venture,” said Parag Vora, HG Vora Capital’s Portfolio Manager. “This agreement reflects our confidence in management’s investment expertise, operating acumen and commitment to enhancing shareholder value.”
Under the agreement, HG Vora Capital has withdrawn its three nominees for election to Chatham’s Board of Trustees and agreed to certain customary standstill provisions with respect to the 2014 and 2015 annual meetings of shareholders.
Chatham has agreed to use the net proceeds received from a sale of the Innkeepers joint venture for the acquisition of hotels, joint venture investments or capital expenditures, and to distribute any remainder as a special dividend to shareholders. Subject to certain exceptions, Chatham has agreed for a specified period not to issue equity unless its net debt is equal to or greater than $325 million on a pro forma basis after taking into account the anticipated use of proceeds from such offering and anticipated acquisitions. Chatham also agreed that if it issues any common shares related to financing an Innkeepers acquisition, the minimum offering price would be $20 per share.
Furthermore, Chatham has agreed to provide HG Vora Capital with certain anti-dilution protections.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
