Chatham Lodging Trust Announces Fourth Quarter 2023 Results
- None.
- None.
Insights
The reported increase in RevPAR (Revenue Per Available Room) by 2.5 percent alongside a modest 0.5 percent rise in ADR (Average Daily Rate) and a 2 percent occupancy jump for Chatham Lodging Trust reflects a cautiously optimistic recovery trajectory in the hospitality sector. Despite a broader net loss, these performance indicators suggest resilience in pricing power and demand, particularly in technology-centric regions like Silicon Valley and Belleville. However, the decline in Hotel EBITDA Margin from 33.3 percent to 31.6 percent year-over-year indicates potential cost pressures or inefficiencies that could be a concern for profitability moving forward.
The asset sale of the Hilton Garden Inn Denver Tech Center for approximately $18 million is a strategic move that impacts liquidity and balance sheet health. The decision to avoid a $6 million renovation implies a focus on capital reallocation, which could be used for debt reduction or investment in higher-yielding assets. The reduction of net debt by $26 million and improvement in the leverage ratio signal a strengthened financial position, potentially enhancing investor confidence and creditworthiness.
However, the slight decrease in Adjusted FFO (Funds From Operations) from $10.2 million to $9.8 million and a corresponding dip in AFFO per diluted share, could raise concerns about the REIT's ability to sustain dividend payments at the current rate. The increase in common share dividends from $0.07 to $0.28 per share year-over-year should be viewed in light of these financial metrics to assess the sustainability of such payouts.
The lodging industry's performance can be seen as a barometer for economic trends, particularly in relation to business and leisure travel. Chatham's portfolio, with its focus on upscale, extended-stay and premium-branded, select-service hotels, caters to a specific market segment that has shown resilience. The emphasis on technology markets, as highlighted by the CEO, aligns with broader trends in business travel, which could position the company favorably in the event of increased corporate travel and investment in technology sectors.
The geographical concentration in technology hubs could be a double-edged sword; while it has led to outperformance in RevPAR growth, it also exposes the company to sector-specific risks. The mention of surging investments in artificial intelligence and related infrastructure indicates optimism about future demand, but it also underscores the importance of diversification within the portfolio to mitigate risks associated with any downturns in the tech sector.
Chatham's participation and improved performance in the Global Real Estate Sustainability Benchmark (GRESB) reflects a growing investor focus on environmental, social and governance (ESG) factors, which can influence investor sentiment and potentially impact stock performance. The company's ESG achievements could attract a certain investor demographic that prioritizes sustainability in their investment decisions.
Chatham's performance must be contextualized within the broader REIT market and the specific challenges faced by the lodging sector. The operational metrics such as the GOP Margin and Hotel EBITDA Margin are essential for assessing the REIT's operational efficiency. While these margins have decreased slightly, the company has outperformed the industry in RevPAR growth. This suggests effective revenue management strategies, but also hints at potential cost management issues that could be explored further.
The sale of the Hilton Garden Inn and the avoidance of renovation expenses reflect strategic asset management, which is crucial for REITs to maintain portfolio quality and return on investment. Chatham's ability to repay $150 million of maturing debt and issue $83 million of fixed-rate debt demonstrates financial agility, which is a positive indicator for investors looking at the REIT's debt management practices and long-term viability.
Investors should also consider the implications of the leverage ratio reduction to 25 percent from 27 percent. This improvement in leverage suggests a conservative approach to debt, which can be appealing in an environment of rising interest rates and economic uncertainty.
Fourth Quarter 2023 Key Items
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Portfolio Revenue Per Available Room (RevPAR) – Increased 2.5 percent to
$121 $173 -
RevPAR for the Silicon Valley and
Bellevue hotels was up 14 percent over the 2022 fourth quarter. -
Excluding the Silicon Valley and
Bellevue hotels, RevPAR was up 5 percent over the 2019 fourth quarter.
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RevPAR for the Silicon Valley and
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Net Loss – Incurred a
$11.0 million $4.0 million $(0.23) $(0.08) - Hotel EBITDA Margin – Generated margins of 31.6 percent in the 2023 fourth quarter compared to 2022 fourth quarter margins of 33.3 percent.
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Adjusted EBITDA – Rose
$0.4 million $20.4 million $20.8 million -
Adjusted FFO – Produced AFFO of
$9.8 million $10.2 million $0.19 $0.20 -
Asset Sale – Sold the Hilton Garden Inn Denver Tech Center for approximately
$18 million $6 million
The following chart summarizes the consolidated financial results for the three months and year ended December 31, 2023, and 2022, based on all properties owned during those periods ($ in millions, except margin percentages and per share data):
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Year Ended |
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December 31, |
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December 31, |
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2023 |
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2022 |
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2023 |
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2022 |
Net (loss) income |
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Diluted net (loss) income per common share |
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GOP Margin |
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Hotel EBITDA Margin |
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Adjusted EBITDA |
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AFFO |
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AFFO per diluted share |
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Dividends per common share |
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2023 Highlights
“The lodging industry in 2023 was interesting given the differing RevPAR trends each segment experienced with leisure, group and business travel behaving independent of each other," explained Jeffrey H. Fisher, Chatham's president and chief executive officer. "For Chatham, it was quite the roller coaster, with the beginning of the year meaningfully impacted by significant layoffs in the technology sector, followed by the elimination of internship programs for the summer, all while business travel in most other markets was performing well. After Labor Day, building off the strong business travel undercurrent around the country, our technology markets started to gain traction in the fourth quarter, an encouraging sign as we head into 2024 with momentum."
Chatham's 2023 highlights include:
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RevPAR growth of 6.1 percent, exceeding industry RevPAR performance by approximately 25 percent, despite losing approximately
$12 million - 25 percent rise in other department profits due primarily to continued revenue enhancement initiatives within the company's parking operation and hotel retail markets (combined growth of 21 percent)
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Reduced net debt by
$26 million -
Repaid
$150 million -
Successfully issued
$83 million -
Paid common share dividends of
$0.28 $0.07 -
Participated in the Global Real Estate Sustainability Benchmark (“GRESB”) for the second time, increasing its overall score by 9 percent from 75 to 82
- Earned four of five GRESB Stars and was awarded GRESB's "Green Star"
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Received an overall score of 82/100, ranking 31st out of 115 listed companies in the
Americas region, and 2nd in Chatham's peer group
"Looking forward to the upcoming year, we are encouraged by the early trends our hotels are experiencing. Technology companies that stay with us are back to growing and investing in the future and requiring their employees to be present in their offices. We expect more deal flow in 2024 and we have the financial flexibility to address all upcoming debt maturities, make acquisitions, grow FFO and increase distributable cash flow," Fisher added.
Fourth Quarter 2023 Operating Results
Fisher highlighted, "We were pleased to beat fourth quarter consensus estimates as we achieved better-than-expected top- and bottom-line performance. We were able to combine RevPAR growth of 2.5 percent with a 25 percent increase in other operating profit while holding departmental expenses flat year-over-year on a cost per occupied room basis. This quarter felt more stabilized than the last six quarters, and year-over-year RevPAR growth accelerated throughout the quarter and into January. February RevPAR has been adversely impacted by the severe weather across the country as heavy rains in the west and heavy rain and snow across the middle of the country and the northeast impacted travel. Through last week, RevPAR is up 2 percent year-to-date.
"Although Silicon Valley and Bellevue RevPAR recovery has been slower than we hoped, the future looks incredibly bright with surging investments being made into artificial intelligence and the processing infrastructure necessary to support those initiatives. Including our
Hotel RevPAR Performance
The below chart summarizes key hotel financial statistics for the 39 comparable hotels owned as of December 31, 2023, compared to the 2022 and 2019 fourth quarters:
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Q4 2023 RevPAR |
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Q4 2022 RevPAR |
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Q4 2019 RevPAR |
Occupancy |
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ADR |
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RevPAR |
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The below chart summarizes RevPAR statistics by month for the company’s 39 comparable hotels (38 hotels in January 2024 after the sale of the Hilton Garden Inn Denver Tech Center):
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October |
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November |
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December |
Occupancy |
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ADR |
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RevPAR |
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RevPAR – prior year |
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% Change in RevPAR vs. prior year |
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Fisher continued, “Our fourth quarter RevPAR growth of 2.5 percent was almost double industry-wide RevPAR growth, and as trends normalize for us moving forward, we should continue to outperform the industry given the resurgence of our primarily technology dependent markets. Relative to 2019, fourth quarter ADR was up 8 percent which, again, bodes well as we move ahead into 2024 and business travel demand accelerates.
"Weekday and weekend occupancy was up about 100 basis points in the fourth quarter versus last year and is down approximately 9 and 7 percent versus 2019, respectively. Conversely, weekday ADR was up over 4 percent versus 2019, and weekend ADR was up approximately 20 percent over 2019 levels."
RevPAR performance for Chatham’s largest markets (markets that account for five percent of hotel EBITDA contribution over the last twelve months) is presented below:
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% OF LTM EBITDA |
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Q4 2023 RevPAR |
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Change vs. Q4 2022 |
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Q4 2022 RevPAR |
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Q4 2019 RevPAR |
39 - Hotel Portfolio |
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Silicon Valley |
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Coastal Northeast |
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(3)% |
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(5)% |
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“Outside of our
"We continue to monitor deplanements into our tech driven markets. Deplanements into
Craven commented further, "
Approximately 63 percent of Chatham’s hotel EBITDA over the last twelve months was generated from its extended-stay hotels. Chatham has the highest concentration of extended-stay rooms of any public lodging REIT at 61 percent.
Fourth quarter 2023 occupancy, ADR and RevPAR for each of the company’s major brands, based on the 39 comparable hotels, is presented below (number of hotels in parentheses):
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Residence Inn (16) |
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Homewood Suites (6) |
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Courtyard (4) |
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Hilton Garden Inn (4) |
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Hampton Inn (3) |
Occupancy - 2023 |
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ADR – 2023 |
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RevPAR – 2023 |
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RevPAR – 2022 |
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% Change in RevPAR |
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(2)% |
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(10)% |
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Hotel Operations Performance
The below chart summarizes key hotel operating performance measures for the three months ended December 31, 2023, 2022, and 2019. RevPAR is based on the 39 comparable hotels, and all other data is based on all properties owned during that period. Gross operating profit is calculated as Hotel EBITDA plus property taxes, ground rent and insurance (in millions, except for RevPAR and margin percentages):
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Q4 2023 |
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Q4 2022 |
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Q4 2019 |
RevPAR |
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Gross operating profit |
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Hotel EBITDA |
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GOP margin |
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Hotel EBITDA margin |
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"Labor and benefits increased approximately 4 percent versus the 2022 fourth quarter on a cost per occupied room basis and adversely impacted operating margins by approximately 70 basis points. Wage pressures stabilized over the second half of the year as our December average hourly wage is essentially unchanged from July," Craven concluded.
Corporate Update
The below chart summarizes key financial performance measures for the three months ended December 31, 2023, 2022 and 2019. Corporate EBITDA is calculated as hotel EBITDA minus cash corporate general and administrative expenses and is before debt service and capital expenditures. Debt service includes interest expense and principal amortization on its secured debt, as well as dividends on its preferred shares of
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Q4 2023 |
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Q4 2022 |
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Q4 2019 |
RevPAR |
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Hotel EBITDA |
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Corporate EBITDA |
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Debt Service & Preferred |
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Cash flow before CapEx |
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Hotel Investments
During the 2023 fourth quarter, the company incurred capital expenditures of
Chatham commenced renovations on four hotels in the fourth quarter that will be completed in the 2024 first quarter, including the renovations of the Hilton Garden Inn
Chatham’s 2024 capital expenditure budget is approximately
Capital Markets & Capital Structure
As of December 31, 2023, the company had net debt of
Based on the ratio of the company’s net debt to hotel investments at cost, Chatham’s leverage ratio was approximately 25 percent, down from 27 percent on December 31, 2022.
“We have
Dividend
During the quarter, the Board of Trustees declared a preferred share dividend of
2024 Guidance
The company’s 2024 first quarter guidance reflects the following assumptions:
a. |
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Renovations at the following hotels: Four hotels mentioned in the Hotel Investments section of this release |
b. |
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No additional acquisitions, dispositions, debt or equity issuance |
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Q1 2024 |
RevPAR |
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RevPAR growth |
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Total hotel revenue |
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Net income (loss) |
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Net income (loss) per diluted share |
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Adjusted EBITDA |
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Adjusted FFO |
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Adjusted FFO per diluted share |
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Hotel EBITDA margins |
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Corporate cash administrative expenses |
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Corporate non-cash administrative expenses |
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Interest expense (excluding fee amortization) |
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Non-cash amortization of deferred fees |
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Weighted average shares/units outstanding |
50.8 M |
The company provides guidance but does not undertake to update it for any developments in its business. Achievement of the results is subject to the risks disclosed in the company’s filings with the Securities and Exchange Commission.
Earnings Call
The company will hold its fourth quarter 2023 conference call later today at 11:00 a.m. Eastern Time. Shareholders and other interested parties may listen to a simultaneous webcast of the conference call on the Internet by logging onto Chatham’s Web site, www.chathamlodgingtrust.com, or www.streetevents.com, or may participate in the conference call by dialing 1-877-407-0789 or 1-201-689-8562 and referencing Chatham Lodging Trust. A recording of the call will be available by telephone until Tuesday, March 5, 2024, at 11:59 PM ET , by dialing 1-844-512-2921 or 1-412-317-6671, access ID 13743907. A replay of the conference call will be posted on Chatham’s website.
About Chatham Lodging Trust
Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust (REIT) focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns 38 hotels totaling 5,735 rooms/suites in 16 states and the
Non-GAAP Financial Measures
Included in this press release are certain “non-GAAP financial measures,” within the meaning of Securities and Exchange Commission (SEC) rules and regulations, that are different from measures calculated and presented in accordance with GAAP (generally accepted accounting principles). The company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its operating performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA, (5) EBITDAre (6) Adjusted EBITDA and (7) Adjusted Hotel EBITDA. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss as prescribed by GAAP as a measure of its operating performance.
FFO As Defined by NAREIT and Adjusted FFO
The company calculates FFO in accordance with standards established by the NAREIT, which defines FFO as net income or loss (calculated in accordance with GAAP), excluding gains or losses from sales of real estate, impairment write-downs, the cumulative effect of changes in accounting principles, plus depreciation and amortization (excluding amortization of deferred financing costs), and after adjustments for unconsolidated partnerships and joint ventures following the same approach. The company believes that the presentation of FFO provides useful information to investors regarding its operating performance because it measures its performance without regard to specified non-cash items such as real estate depreciation and amortization, gain or loss on sale of real estate assets and certain other items that the company believes are not indicative of the property level performance of its hotel properties. The company believes that these items reflect historical cost of its asset base and its acquisition and disposition activities and are less reflective of its ongoing operations, and that by adjusting to exclude the effects of these items, FFO is useful to investors in comparing its operating performance between periods and between REITs that also report using the NAREIT definition.
The company calculates Adjusted FFO by further adjusting FFO for certain additional items that are not addressed in NAREIT’s definition of FFO, including other charges, losses on the early extinguishment of debt and similar items related to its unconsolidated real estate entities that it believes do not represent costs related to hotel operations. The company believes that Adjusted FFO provides investors with another financial measure that may facilitate comparisons of operating performance between periods and between REITs that make similar adjustments to FFO.
EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA
The company calculates EBITDA for purposes of the credit facility debt as net income or loss excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; (3) depreciation and amortization; and (4) unconsolidated real estate entity items including interest, depreciation and amortization excluding gains and losses from sales of real estate. The company believes EBITDA is useful to investors in evaluating and facilitating comparisons of its operating performance because it helps investors compare the company’s operating performance between periods and between REITs by removing the impact of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from its operating results. In addition, the company uses EBITDA as one measure in determining the value of hotel acquisitions and dispositions.
The company calculates EBITDAre in accordance with NAREIT guidelines, which defines EBITDAre as net income or loss excluding interest expense, income tax expense, depreciation and amortization expense, gains or losses from sales of real estate, impairment, and adjustments for unconsolidated joint ventures. We believe that the presentation of EBITDAre provides useful information to investors regarding the Company's operating performance and can facilitate comparisons of operating performance between periods and between REITs.
The company calculates Adjusted EBITDA by further adjusting EBITDA for certain additional items, including other charges, losses on the early extinguishment of debt, amortization of non-cash share-based compensation and similar items related to its unconsolidated real estate entities, which it believes are not indicative of the performance of its underlying hotel properties entities. The company believes that Adjusted EBITDA provides investors with another financial measure that may facilitate comparisons of operating performance between periods and between REITs that report similar measures.
Adjusted Hotel EBITDA is defined as net income before interest, income taxes, depreciation and amortization, corporate general and administrative, impairment loss, loss on early extinguishment of debt, interest and other income and income or loss from unconsolidated real estate entities. The Company presents Adjusted Hotel EBITDA because the Company believes it is useful to investors in comparing its hotel operating performance between periods and comparing its Adjusted Hotel EBITDA margins to those of our peer companies. Adjusted Hotel EBITDA represents the results of operations for its wholly owned hotels only.
Although the company presents FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA because it believes they are useful to investors in comparing the company’s operating performance between periods and between REITs that report similar measures, these measures have limitations as analytical tools. Some of these limitations are:
- FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA do not reflect the company’s cash expenditures, or future requirements, for capital expenditures or contractual commitments;
- FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA do not reflect changes in, or cash requirements for, the company’s working capital needs;
- FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA do not reflect funds available to make cash distributions;
- EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on the company’s debts;
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may need to be replaced in the future, and FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA do not reflect any cash requirements for such replacements;
- Non-cash compensation is and will remain a key element of the company’s overall long-term incentive compensation package, although the company excludes it as an expense when evaluating its ongoing operating performance for a particular period using adjusted EBITDA;
- Adjusted FFO, Adjusted EBITDA and Adjusted Hotel EBITDA do not reflect the impact of certain cash charges (including acquisition transaction costs) that result from matters the company considers not to be indicative of the underlying performance of its hotel properties; and
- Other companies in the company’s industry may calculate FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA differently than the company does, limiting their usefulness as a comparative measure.
In addition, FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA do not represent cash generated from operating activities as determined by GAAP and should not be considered as alternatives to net income or loss, cash flows from operations or any other operating performance measure prescribed by GAAP. FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA are not measures of the Company’s liquidity. Because of these limitations, FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. The Company compensates for these limitations by relying primarily on its GAAP results and using FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA only supplementally. The Company’s consolidated financial statements and the notes to those statements included elsewhere are prepared in accordance with GAAP. The company’s reconciliation of FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA to net income attributable to common shareholders, as determined under GAAP, is set forth below.
Forward-Looking Statement Safe Harbor
Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements include those with regard to the potential future impact of the COVID-19 pandemic, within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements include information about possible or assumed future results of the lodging industry and our business, financial condition, liquidity, results of operations, cash flow and plans and objectives. These statements generally are characterized by the use of the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may” or similar expressions. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, our actual results could differ materially from those set forth in the forward-looking statements. Important factors that we think could cause our actual results to differ materially from expected results are summarized below.
Other risks include, but are not limited to: national and local economic and business conditions, including the effect on travel of potential terrorist attacks, that will affect occupancy rates at the company’s hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of the company’s indebtedness and its ability to meet covenants in its debt agreements; relationships with property managers; the company’s ability to maintain its properties in a Fourth-class manner, including meeting capital expenditure requirements; the company’s ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; the company’s ability to complete acquisitions and dispositions; and the company’s ability to continue to satisfy complex rules in order for the company to remain a REIT for federal income tax purposes and other risks and uncertainties associated with the company’s business described in the company's filings with the SEC; inaccuracies of our accounting estimates and the uncertainty and economic impact of pandemics, epidemics or other public health emergencies of fear of such events, such as the recent COVID-19 pandemic. Given these uncertainties, undue reliance should not be placed on such statements. We undertake no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect future events or circumstances or to reflect the occurrence of unanticipated events. The forward-looking statements should also be read in light of the risk factors identified in the “Risk Factors” section in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as updated by the Company's subsequent filings with the SEC under the Exchange Act.
CHATHAM LODGING TRUST |
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Consolidated Balance Sheets |
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(In thousands, except share and per share data) |
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December 31,
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December 31,
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Assets: |
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Investment in hotel properties, net |
$ |
1,227,633 |
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$ |
1,264,252 |
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Cash and cash equivalents |
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68,130 |
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26,274 |
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Restricted cash |
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17,619 |
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18,879 |
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Right of use asset, net |
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18,141 |
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19,297 |
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Hotel receivables (net of allowance for doubtful accounts of |
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4,375 |
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5,178 |
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Deferred costs, net |
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4,246 |
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6,428 |
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Prepaid expenses and other assets |
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3,786 |
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3,430 |
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Total assets |
$ |
1,343,930 |
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$ |
1,343,738 |
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Liabilities and Equity: |
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Mortgage debt, net |
$ |
394,544 |
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$ |
430,553 |
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Revolving credit facility |
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— |
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— |
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Construction loan |
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— |
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39,331 |
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Unsecured term loan, net |
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89,533 |
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— |
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Accounts payable and accrued expenses (including |
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29,255 |
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28,528 |
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Lease liability, net |
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20,808 |
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22,108 |
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Distributions payable |
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5,414 |
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5,221 |
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Total liabilities |
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539,554 |
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525,741 |
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Commitments and contingencies |
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Equity: |
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Shareholders’ Equity: |
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Preferred shares, |
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48 |
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48 |
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Common shares, |
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488 |
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488 |
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Additional paid-in capital |
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1,047,176 |
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1,047,023 |
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Accumulated deficit |
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(271,651 |
) |
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(252,665 |
) |
Total shareholders’ equity |
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776,061 |
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794,894 |
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Noncontrolling Interests: |
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Noncontrolling Interest in Operating Partnership |
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28,315 |
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23,103 |
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Total equity |
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804,376 |
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817,997 |
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Total liabilities and equity |
$ |
1,343,930 |
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$ |
1,343,738 |
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CHATHAM LODGING TRUST |
|||||||||||||||
Consolidated Statements of Operations |
|||||||||||||||
(In thousands, except share and per share data) |
|||||||||||||||
|
For the three months ended |
|
For the years ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue: |
|
|
|
|
|
|
|
||||||||
Room |
$ |
65,980 |
|
|
$ |
64,369 |
|
|
$ |
284,999 |
|
|
$ |
272,265 |
|
Food and beverage |
|
1,968 |
|
|
|
2,105 |
|
|
|
8,124 |
|
|
|
7,303 |
|
Other |
|
4,058 |
|
|
|
3,517 |
|
|
|
16,703 |
|
|
|
13,958 |
|
Reimbursable costs from related parties |
|
272 |
|
|
|
329 |
|
|
|
1,283 |
|
|
|
1,325 |
|
Total revenue |
|
72,278 |
|
|
|
70,320 |
|
|
|
311,109 |
|
|
|
294,851 |
|
Expenses: |
|
|
|
|
|
|
|
||||||||
Hotel operating expenses: |
|
|
|
|
|
|
|
||||||||
Room |
|
15,876 |
|
|
|
15,107 |
|
|
|
61,794 |
|
|
|
56,073 |
|
Food and beverage |
|
1,700 |
|
|
|
1,608 |
|
|
|
6,352 |
|
|
|
5,520 |
|
Telephone |
|
333 |
|
|
|
343 |
|
|
|
1,439 |
|
|
|
1,449 |
|
Other hotel operating |
|
900 |
|
|
|
994 |
|
|
|
3,712 |
|
|
|
3,488 |
|
General and administrative |
|
7,270 |
|
|
|
7,051 |
|
|
|
28,884 |
|
|
|
26,085 |
|
Franchise and marketing fees |
|
5,776 |
|
|
|
5,601 |
|
|
|
24,897 |
|
|
|
23,674 |
|
Advertising and promotions |
|
1,572 |
|
|
|
1,479 |
|
|
|
6,085 |
|
|
|
5,397 |
|
Utilities |
|
3,199 |
|
|
|
2,957 |
|
|
|
13,007 |
|
|
|
12,048 |
|
Repairs and maintenance |
|
4,103 |
|
|
|
3,753 |
|
|
|
15,837 |
|
|
|
14,145 |
|
Management fees paid to related parties |
|
2,484 |
|
|
|
2,502 |
|
|
|
10,557 |
|
|
|
10,133 |
|
Insurance |
|
705 |
|
|
|
651 |
|
|
|
2,822 |
|
|
|
2,746 |
|
Total hotel operating expenses |
|
43,918 |
|
|
|
42,046 |
|
|
|
175,386 |
|
|
|
160,758 |
|
Depreciation and amortization |
|
14,639 |
|
|
|
14,379 |
|
|
|
58,254 |
|
|
|
59,350 |
|
Impairment loss |
|
4,266 |
|
|
|
— |
|
|
|
4,266 |
|
|
|
— |
|
Property taxes, ground rent and insurance |
|
5,325 |
|
|
|
4,651 |
|
|
|
23,507 |
|
|
|
21,210 |
|
General and administrative |
|
4,345 |
|
|
|
4,341 |
|
|
|
17,517 |
|
|
|
17,339 |
|
Other charges |
|
2,256 |
|
|
|
(21 |
) |
|
|
2,300 |
|
|
|
683 |
|
Reimbursable costs from related parties |
|
272 |
|
|
|
329 |
|
|
|
1,283 |
|
|
|
1,326 |
|
Total operating expenses |
|
75,021 |
|
|
|
65,725 |
|
|
|
282,513 |
|
|
|
260,666 |
|
Operating (loss) income before (loss) gain on sale of hotel property |
|
(2,743 |
) |
|
|
4,595 |
|
|
|
28,596 |
|
|
|
34,185 |
|
(Loss) gain on sale of hotel property |
|
(38 |
) |
|
|
139 |
|
|
|
18 |
|
|
|
2,268 |
|
Operating (loss) income |
|
(2,781 |
) |
|
|
4,734 |
|
|
|
28,614 |
|
|
|
36,453 |
|
Interest and other income |
|
847 |
|
|
|
1 |
|
|
|
1,534 |
|
|
|
10 |
|
Interest expense net of amounts capitalized, including amortization of deferred fees |
|
(7,399 |
) |
|
|
(6,726 |
) |
|
|
(27,128 |
) |
|
|
(26,454 |
) |
Loss on early extinguishment of debt |
|
— |
|
|
|
(138 |
) |
|
|
(696 |
) |
|
|
(138 |
) |
Gain from partial lease termination |
|
— |
|
|
|
— |
|
|
|
164 |
|
|
|
— |
|
(Loss) income before income tax expense |
|
(9,333 |
) |
|
|
(2,129 |
) |
|
|
2,488 |
|
|
|
9,871 |
|
Income tax expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net (loss) income |
|
(9,333 |
) |
|
|
(2,129 |
) |
|
|
2,488 |
|
|
|
9,871 |
|
Net loss (income) attributable to non-controlling interest |
|
354 |
|
|
|
99 |
|
|
|
156 |
|
|
|
(66 |
) |
Net (loss) income attributable to Chatham Lodging Trust |
|
(8,979 |
) |
|
|
(2,030 |
) |
|
|
2,644 |
|
|
|
9,805 |
|
Preferred dividends |
|
(1,987 |
) |
|
|
(1,987 |
) |
|
|
(7,950 |
) |
|
|
(7,950 |
) |
Net (loss) income attributable to common shareholders |
$ |
(10,966 |
) |
|
$ |
(4,017 |
) |
|
$ |
(5,306 |
) |
|
$ |
1,855 |
|
(Loss) income per common share - basic: |
|
|
|
|
|
|
|
||||||||
Net (loss) income attributable to common shareholders |
$ |
(0.23 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.11 |
) |
|
$ |
0.04 |
|
(Loss) income per common share - diluted: |
|
|
|
|
|
|
|
||||||||
Net (loss) income attributable to common shareholders |
$ |
(0.23 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.11 |
) |
|
$ |
0.04 |
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
48,853,357 |
|
|
|
48,800,992 |
|
|
|
48,847,386 |
|
|
|
48,795,642 |
|
Diluted |
|
48,853,357 |
|
|
|
48,800,992 |
|
|
|
48,847,386 |
|
|
|
49,058,722 |
|
Distributions per common share: |
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.28 |
|
|
$ |
0.07 |
|
CHATHAM LODGING TRUST |
|||||||||||||||
FFO and EBITDA |
|||||||||||||||
(In thousands, except share and per share data) |
|||||||||||||||
|
For the three months ended |
|
For the years ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Funds From Operations (“FFO”): |
|
|
|
|
|
|
|
||||||||
Net (loss) income |
$ |
(9,333 |
) |
|
$ |
(2,129 |
) |
|
$ |
2,488 |
|
|
$ |
9,871 |
|
Preferred dividends |
|
(1,987 |
) |
|
|
(1,987 |
) |
|
|
(7,950 |
) |
|
|
(7,950 |
) |
Net (loss) income attributable to common shares and common units |
|
(11,320 |
) |
|
|
(4,116 |
) |
|
|
(5,462 |
) |
|
|
1,921 |
|
Loss (gain) on sale of hotel property |
|
38 |
|
|
|
(139 |
) |
|
|
(18 |
) |
|
|
(2,268 |
) |
Depreciation |
|
14,586 |
|
|
|
14,326 |
|
|
|
58,040 |
|
|
|
59,123 |
|
Impairment loss |
|
4,266 |
|
|
|
— |
|
|
|
4,266 |
|
|
|
— |
|
FFO attributed to common share and unit holders |
|
7,570 |
|
|
|
10,071 |
|
|
|
56,826 |
|
|
|
58,776 |
|
Other charges |
|
2,256 |
|
|
|
(21 |
) |
|
|
2,300 |
|
|
|
683 |
|
Loss on early extinguishment of debt |
|
— |
|
|
|
138 |
|
|
|
696 |
|
|
|
138 |
|
Gain from partial lease termination |
|
— |
|
|
|
— |
|
|
|
(164 |
) |
|
|
— |
|
Adjusted FFO attributed to common share and unit holders |
$ |
9,826 |
|
|
$ |
10,188 |
|
|
$ |
59,658 |
|
|
$ |
59,597 |
|
Weighted average number of common shares and units |
|
|
|
|
|
|
|
||||||||
Basic |
|
50,440,674 |
|
|
|
50,015,751 |
|
|
|
50,374,481 |
|
|
|
49,971,823 |
|
Diluted |
|
50,729,096 |
|
|
|
50,376,373 |
|
|
|
50,532,122 |
|
|
|
50,234,903 |
|
|
For the three months ended |
|
For the years ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”): |
|
|
|
|
|
|
|
||||||||
Net (loss) income |
$ |
(9,333 |
) |
|
$ |
(2,129 |
) |
|
$ |
2,488 |
|
|
$ |
9,871 |
|
Interest expense |
|
7,399 |
|
|
|
6,726 |
|
|
|
27,128 |
|
|
|
26,454 |
|
Depreciation and amortization |
|
14,639 |
|
|
|
14,379 |
|
|
|
58,254 |
|
|
|
59,350 |
|
EBITDA |
|
12,705 |
|
|
|
18,976 |
|
|
|
87,870 |
|
|
|
95,675 |
|
Impairment loss |
|
4,266 |
|
|
|
— |
|
|
|
4,266 |
|
|
|
— |
|
Loss (gain) on sale of hotel property |
|
38 |
|
|
|
(139 |
) |
|
|
(18 |
) |
|
|
(2,268 |
) |
EBITDAre |
|
17,009 |
|
|
|
18,837 |
|
|
|
92,118 |
|
|
|
93,407 |
|
Other charges |
|
2,256 |
|
|
|
(21 |
) |
|
|
2,300 |
|
|
|
683 |
|
Loss on early extinguishment of debt |
|
— |
|
|
|
138 |
|
|
|
696 |
|
|
|
138 |
|
Gain from partial lease termination |
|
— |
|
|
|
— |
|
|
|
(164 |
) |
|
|
— |
|
Share based compensation |
|
1,555 |
|
|
|
1,419 |
|
|
|
6,117 |
|
|
|
5,551 |
|
Adjusted EBITDA |
$ |
20,820 |
|
|
$ |
20,373 |
|
|
$ |
101,067 |
|
|
$ |
99,779 |
|
CHATHAM LODGING TRUST |
||||||||||||||||
ADJUSTED HOTEL EBITDA |
||||||||||||||||
(In thousands, except share and per share data) |
||||||||||||||||
|
|
For the three months ended |
|
For the years ended |
||||||||||||
|
|
December 31, |
|
December 31, |
||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income |
|
$ |
(9,333 |
) |
|
$ |
(2,129 |
) |
|
$ |
2,488 |
|
$ |
9,871 |
|
|
Add: |
Interest expense |
|
7,399 |
|
|
|
6,726 |
|
|
|
27,128 |
|
|
|
26,454 |
|
|
Depreciation and amortization |
|
14,639 |
|
|
|
14,379 |
|
|
|
58,254 |
|
|
|
59,350 |
|
|
Corporate general and administrative |
|
4,345 |
|
|
|
4,341 |
|
|
|
17,517 |
|
|
|
17,339 |
|
|
Other charges |
|
2,256 |
|
|
|
— |
|
|
|
2,300 |
|
|
|
683 |
|
|
Impairment loss |
|
4,266 |
|
|
|
— |
|
|
|
4,266 |
|
|
|
— |
|
|
Loss on early extinguishment of debt |
|
— |
|
|
|
138 |
|
|
|
696 |
|
|
|
138 |
|
|
Loss on sale of hotel property |
|
38 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: |
Interest and other income |
|
(847 |
) |
|
|
(1 |
) |
|
|
(1,534 |
) |
|
|
(10 |
) |
|
Other charges |
|
— |
|
|
|
(21 |
) |
|
|
— |
|
|
|
— |
|
|
Gain on sale of hotel property |
|
— |
|
|
|
(139 |
) |
|
|
(18 |
) |
|
|
(2,268 |
) |
|
Gain from partial lease termination |
|
— |
|
|
|
— |
|
|
|
(164 |
) |
|
|
— |
|
|
Adjusted Hotel EBITDA |
$ |
22,763 |
|
|
$ |
23,294 |
|
|
$ |
110,933 |
|
|
$ |
111,557 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227828272/en/
Dennis Craven (Company)
Chief Operating Officer
(561) 227-1386
Chris Daly (Media)
DG Public Relations
(703) 864-5553
Source: Chatham Lodging Trust
FAQ
What was Chatham Lodging Trust's (CLDT) Portfolio Revenue Per Available Room (RevPAR) increase for the fourth quarter of 2023?
What was the net loss applicable to common shareholders for Chatham Lodging Trust (CLDT) in the fourth quarter of 2023?
What was the Hotel EBITDA Margin for Chatham Lodging Trust (CLDT) in the fourth quarter of 2023?
What asset did Chatham Lodging Trust (CLDT) sell subsequent to the end of the fourth quarter of 2023?
What highlights did Chatham Lodging Trust (CLDT) achieve in 2023?
What was the occupancy rate for Chatham Lodging Trust's (CLDT) comparable hotels in December 2023?
What was the Average Daily Rate (ADR) for Chatham Lodging Trust's (CLDT) comparable hotels in December 2023?
How did Chatham Lodging Trust's (CLDT) RevPAR performance compare to the industry in the fourth quarter of 2023?
