Andrew Feldstein and Stephen Siderow Join a REIT Party

BlueMountain Capital, Chatham Lodging Trust: In a new 13D with the SEC minutes ago, Andrew Feldstein and Stephen Siderow’s BlueMountain Capital disclosed a 4.9% stake in hotel REIT Chatham Lodging Trust (NYSE:CLDT). HG Vora Capital Management reported a similar sized position a few minutes earlier, and like Vora, BlueMountain also mentions that its investment is in anticipation of talks to “enhance value” for shareholders. We’ll keep watching this situation to deliver any updates on what this value creation might be, whether it’s in the form of a dividend boost, a share buyback, or something else altogether.

Chatham Lodging Trust disclosed last week that it was buying the 180-room Hilton Garden Inn Denver Tech Center for a price of $27.9 million. The Center hosts offices of more than 1,000 companies with Oracle, Newmont Mining, EMC Corporation and IBM among them. At the end of September, the company conducted a public offering of around 3.3 million shares at a price of $18.50 per share, with a total gross proceeds worth some $59.6 million. The proceeds were used for the acquisition of Garden Inn Denver Tech Center, as well as for the purchase of the 231-room Residence Inn Seattle Bellevue, worth $73.2 million.

J. Alan Reid Jr.’s Forward Management and Israel Englander’s Millennium Management own shares of Chatham Lodging Trust.

Disclosure: none

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