Chesapeake Lodging Trust Prices IPO

FAIRFIELD, N.J., Jan 22, 2010 (BUSINESS WIRE) - Chesapeake Lodging Trust (the "Company") today announced it has priced its initial public offering of 7,500,000 common shares of beneficial interest, $0.01 par value per share, at $20 per share.

The offering is expected to close on January 27, 2010. The underwriters have a 30-day option to purchase up to an additional 1,125,000 shares to cover overallotments, if any. All the shares are being offered by the Company.

Concurrent with the closing of the offering, the Company expects to raise additional proceeds through private placements to Hyatt Corporation, BAMCO, Inc. and certain of its executive officers and trustees on the terms described in the prospectus relating to the offering.

The Company will contribute the net proceeds of the offering and concurrent private placements to its operating partnership, which will use the net proceeds to invest in upper upscale hotel properties in accordance with the Company's investment strategy and for general business purposes.

The Company's common shares are scheduled to begin trading on January 22, 2010 on the New York Stock Exchange under the symbol "CHSP."

J.P. Morgan Securities Inc. and Deutsche Bank Securities Inc. are acting as joint book-running managers for the offering. FBR Capital Markets & Co. is acting as lead-manager. KeyBanc Capital Markets Inc., Robert W. Baird & Co. Incorporated, RBC Capital Markets and JMP Securities are acting as co-managers. Hogan & Hartson LLP is serving as legal counsel to Chesapeake Lodging Trust. Clifford Chance US LLP is serving as legal counsel to the underwriters.

A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on January 21, 2010. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering is being made solely by means of a prospectus. Copies of the final prospectus relating to the offering may be obtained from J.P. Morgan Securities Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, or by calling (866) 803-9204; or by contacting Deutsche Bank Securities Inc., Attn: Prospectus Department, 100 Plaza One, Jersey City, New Jersey 07311, telephone: (800) 503-4611 or e-mail at prospectusrequest@list.db.com.

THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER FEDERAL SECURITIES LAWS. THESE FORWARD-LOOKING STATEMENTS ARE BASED UPON THE COMPANY'S PRESENT EXPECTATIONS, BUT THESE STATEMENTS ARE NOT GUARANTEED TO OCCUR. FOR EXAMPLE, THE FACT THAT THIS OFFERING HAS PRICED MAY IMPLY THAT THE OFFERING WILL CLOSE, BUT THE CLOSING IS SUBJECT TO CONDITIONS CUSTOMARY IN TRANSACTIONS OF THIS TYPE AND MAY BE DELAYED OR MAY NOT OCCUR AT ALL. SIMILARLY, THE CONCURRENT PRIVATE PLACEMENTS ARE SUBJECT TO THE CLOSING OF THE OFFERING, AS WELL AS OTHER CUSTOMARY CLOSING CONDITIONS AND MAY BE DELAYED OR MAY NOT OCCUR AT ALL. IN ADDITION, THE FACT THAT THE UNDERWRITERS HAVE AN OVERALLOTMENT OPTION MAY IMPLY THAT THIS OPTION WILL BE EXERCISED. HOWEVER, THE UNDERWRITERS ARE NOT UNDER ANY OBLIGATION TO EXERCISE THIS OPTION, OR ANY PORTION OF IT, AND MAY NOT DO SO. INVESTORS SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD-LOOKING STATEMENTS.

SOURCE: Chesapeake Lodging Trust