Q2 2024 Chatham Lodging Trust Earnings Call Transcript
Key Points
- Chatham Lodging Trust (CLDT) successfully repaid approximately $280 million of maturing debt, leaving only $30 million due over the next year, indicating strong financial management.
- The company acquired a new hotel, the Home2 Suites by Hilton Phoenix Downtown, strategically located in a vibrant area, which is expected to drive diverse demand.
- RevPAR growth was strong at 4% for the quarter, with occupancy levels up every day compared to last year, indicating a recovery in business travel.
- Chatham Lodging Trust (CLDT) reported a GOP margin of 46%, finishing at the top of their guidance range, showcasing effective cost management.
- The company is positioned to benefit from declining interest rates due to their exposure to floating rate debt, potentially increasing FFO by $2.6 million for every 100 basis points decline in SOFR.
- RevPAR growth was impacted by the timing of the Juneteenth holiday and the July 4th holiday, leading to a decline in performance during those periods.
- Hotel EBITDA margins were down 230 basis points compared to the previous year, partly due to non-recurring expenses and increased costs in areas like payroll and insurance.
- The leisure segment of their portfolio saw a RevPAR decline of 2%, indicating potential challenges in this market segment.
- The company faces challenges in achieving ADR increases, particularly in the leisure segment, which could impact overall revenue growth.
- Chatham Lodging Trust (CLDT) has some hotels facing upcoming renovations, which could require significant capital expenditure without a clear return on investment.
Greetings, and welcome to the Chatham Lodging Trust Second Quarter 2024 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, Chris Daly, President of DG Public Relations. Please go ahead.
Thank you, Brock. Good morning, everyone. And welcome to the Chatham Lodging Trust second 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 subjects 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 August 2, 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. You can find copies of our SEC filings and earnings release
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