Q1 2024 Chatham Lodging Trust Earnings Call Transcript
Key Points
- Chatham Lodging Trust reported a 2% increase in RevPAR, driven by growth in both occupancy and ADR, outperforming industry averages.
- Generated $8.3 million in free cash flow for the quarter, marking a 10% increase over the same period in 2023.
- Strong performance in tech-driven hotels, with significant RevPAR growth in Silicon Valley and Bellevue markets.
- Successfully sold the Hilton Garden Inn Denver Tech for $18 million, aligning with strategic goals to optimize the portfolio.
- Maintained a healthy balance sheet with low leverage levels and increased financial flexibility through additional borrowings.
- Excluding the five tech-driven hotels, first quarter RevPAR was down 1%.
- GOP margins at comparable hotels decreased by 120 basis points, primarily due to increased labor and benefits costs.
- Faced challenges in the Los Angeles market, with underperformance in business travel affecting key hotels.
- Anticipated capital expenditures of approximately $37 million for 2024, indicating significant ongoing investment needs.
- Despite overall growth, certain leisure markets like Savannah and Destin showed weakness, impacting performance.
Greetings. Welcome to Chatham Lodging Trust first-quarter 2024 financial results. (Operator Instructions) Please note this conference is being recorded. And at this time, I'll turn the conference over to Chris Daly, President of DG Public Relations. Chris, you may now begin.
Thank you, Rob. Good morning, everyone, and welcome to the Chatham Lodging Trust First Quarter 2024 Results Conference Call. Please note that many of our comments today are considered forward-looking statements as defined by federal securities laws. These statements are subject to risks and uncertainties, both known and unknown as described in our most recent Form 10 K and other SEC filings. All information in this call is as of May sixth, 2024, unless otherwise noted, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations. Infone copy copies of our SEC filings and earnings release which contain reconciliations to non-GAAP financial measures
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