Chesapeake Lodging Trust (NYSE:CHSP), a lodging real estate investment trust (REIT), reported today its financial results for the quarter ended June 30, 2013.
- Pro Forma RevPAR : 7.7% increase for comparable 19-hotel portfolio over the same period in 2012.
- Pro Forma Adjusted Hotel EBITDA Margin : 170 basis point increase for comparable 19-hotel portfolio over the same period in 2012.
- Acquisitions : Acquired the 410-room W New Orleans for $65.0 million, the 313-room Hyatt Fisherman’s Wharf for $103.5 million, and the 200-room Hyatt Santa Barbara for $61.0 million.
- Financings : Closed on a $60.0 million, seven-year loan at 3.63%. Subsequent to quarter end, refinanced an existing $130.0 million loan, replacing it with a $92.5 million, seven-year loan at 3.50% and a $93.0 million, 10-year loan at 4.25%.
- Dividends : Increased third quarter 2013 dividend by 8.3% to $0.26 per common share (4.5% annualized yield based on the closing price of the Trust’s common shares on August 2, 2013).
“We are excited about our accomplishments in the second quarter. We were able to prudently deploy proceeds from our February common share offering by acquiring three hotels, all with significant upside potential,” said James L. Francis, Chesapeake Lodging Trust’s President and Chief Executive Officer. “Furthermore, we also successfully completed a refinancing that further strengthened our balance sheet by both lowering our cost of debt and extending our debt maturities.”
Mr. Francis continued, “Our hotel portfolio also turned in an outstanding quarter, reaching a second quarter occupancy level of over 85% which allowed our operators to continue pushing daily rates. We are very proud of our hotel margin expansion of 170 basis points which was a result of our continued focus on asset management initiatives to reduce or limit increases in expenses.”