Shares of Chatham Lodging Trust climbed Friday, their first day of trading on the New York Stock Exchange.

The Palm Beach, Fla.-based real estate investment trust had priced 7.5 million shares of its initial public offering at $20 each, raising $150 million.

Chatham, formed to invest in hotels, plans to use about half of its net IPO proceeds, $73.5 million, to buy six Homewood Suites by Hilton Hotels. The rest of the funds are intended for future hotel investments.

Chatham's stock added 40 cents, or 2 percent, to $20.40 in morning trading.