Chesapeake Lodging Trust (CHSP) Trims H2, FY15 RevPAR Outlook; Approves $100M Common Stock Buyback

Chesapeake Lodging Trust (NYSE: CHSP) announced that it is providing an update to its 2015 outlook and its board of trustees authorized a $100.0 million share repurchase program.

"We expect to achieve our previously provided outlook on RevPAR growth for our hotel portfolio for the third quarter and full year, however, we are adjusting our outlook for the second half of 2015 to primarily reflect (1) a change in expectations in the composition of our RevPAR growth which we now expect to be led by stronger occupancy growth and modestly lower ADR growth than previously expected, which negatively impacts profitability, (2) weaker than expected results in late August and early September as a result of the Labor Day shift and (3) a significantly larger than expected increase in property taxes at our two Chicago hotels,” said James L. Francis, Chesapeake Lodging Trust’s President and Chief Executive Officer. "Reflecting our belief that lodging industry fundamentals will remain positive for the foreseeable future and our confidence in the positioning and growth potential of our existing portfolio, we have authorized a $100 million share repurchase program to provide the Trust with the ability to opportunistically use available capital to enhance returns for our shareholders.”

2015 OUTLOOK UPDATE

The Trust is updating its 2015 outlook to incorporate its recent operating trends and fundamentals. The updated outlook assumes no additional acquisitions, dispositions, or financing transactions (in millions, except per share amounts):

SHARE REPURCHASE PROGRAM

On September 29, 2015, the Trust's board of trustees authorized a share repurchase program pursuant to which the Trust may acquire up to $100.0 million of its common shares using cash on hand and borrowings under its revolving credit facility.

The timing and volume of repurchases will be determined by the Trust's management based on its ongoing assessments of the capital needs of the business, prevailing market prices, general economic and market conditions and other considerations. The repurchase program authorizes the Trust to repurchase its common shares from time to time through open market purchases, negotiated transactions or other means, including Rule 10b5-1 trading plans, in accordance with applicable securities laws and other restrictions. No time limit has been set for the completion of the repurchase program, and the program may be suspended or discontinued at any time. The share repurchase program does not obligate the Trust to acquire any particular amount of its shares.

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