PART I [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements.) The Q1 2020 financial statements reflect a significant downturn with a $28.1 million net loss and 20.4% revenue decrease, primarily due to COVID-19 impacts [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Balance Sheet Highlights (In thousands) | Balance Sheet Highlights (In thousands) | March 31, 2020 (unaudited) | December 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $57,972 | $6,620 | | Investment in hotel properties, net | $1,339,778 | $1,347,116 | | Total assets | $1,470,092 | $1,438,574 | | **Liabilities & Equity** | | | | Mortgage debt, net | $493,265 | $495,465 | | Revolving credit facility | $173,000 | $90,000 | | Total liabilities | $731,822 | $663,550 | | Total equity | $738,270 | $775,024 | - Cash and cash equivalents increased significantly to **$58.0 million** from **$6.6 million**, primarily due to drawing **$83.0 million** from the revolving credit facility to enhance liquidity in response to the COVID-19 pandemic[10](index=10&type=chunk)[173](index=173&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Statement of Operations (In thousands) | Statement of Operations (In thousands) | Three months ended March 31, 2020 | Three months ended March 31, 2019 | | :--- | :--- | :--- | | Total revenue | $60,209 | $75,679 | | Total operating expenses | $77,896 | $65,786 | | Operating (loss) income | $(17,686) | $9,893 | | Impairment loss on investment | $15,282 | $— | | Net (loss) income | $(28,111) | $1,628 | | (Loss) income per Common Share - Diluted | $(0.59) | $0.03 | - The company recorded a significant impairment loss of **$15.3 million** on its investment in unconsolidated real estate entities (the Inland JV), which was a major contributor to the net loss in Q1 2020[13](index=13&type=chunk)[48](index=48&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (In thousands) | Cash Flow Summary (In thousands) | Three months ended March 31, 2020 | Three months ended March 31, 2019 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(2,860) | $13,311 | | Net cash used in investing activities | $(12,307) | $(11,741) | | Net cash provided by (used in) financing activities | $64,556 | $(1,366) | | Net change in cash, cash equivalents and restricted cash | $49,389 | $204 | - Financing activities provided **$64.6 million** in cash, primarily from net borrowings of **$83.0 million** on the revolving credit facility, which was partially offset by **$16.2 million** in distributions to shareholders[18](index=18&type=chunk) [Notes to the Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Notes detail the company's REIT structure, a **$15.3 million** Inland JV impairment, credit facility draw, and subsequent covenant waivers and JV debt defaults - As of March 31, 2020, the company wholly owned **40 hotels** and held noncontrolling interests in two joint ventures (NewINK JV and Inland JV) which collectively own **94 hotels**[27](index=27&type=chunk) - Due to the significant impact of the COVID-19 pandemic, the company determined its investment in the Inland JV was not recoverable and recorded a full impairment of **$15.3 million**[48](index=48&type=chunk) - Subsequent to quarter-end, on May 6, 2020, the company amended its credit facility to waive certain financial covenants through March 31, 2021, and gain full access to the **$250 million** facility[106](index=106&type=chunk) - In April and May 2020, both the NewINK JV and the Inland JV failed to make their required debt service payments, resulting in events of default on their respective loans[107](index=107&type=chunk)[108](index=108&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) MD&A discusses the severe COVID-19 impact on Q1 2020 operations, including a **21.8%** RevPAR decrease, **$28.1 million** net loss, and liquidity measures [COVID-19 Pandemic Impact](index=26&type=section&id=COVID-19%20Pandemic) - The lodging industry has been significantly impacted by the COVID-19 pandemic due to travel restrictions and a decline in domestic travel, with the full impact uncertain and dependent on future developments[113](index=113&type=chunk) - In response to the pandemic, the company has taken actions to mitigate the financial impact, including suspending monthly dividends, reducing 2020 capital expenditures, borrowing under its credit facility, and temporarily reducing executive compensation[113](index=113&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Key Operating Metrics (Same Property, 40 hotels) | Key Operating Metrics (Same Property, 40 hotels) | Q1 2020 | Q1 2019 | % Change | | :--- | :--- | :--- | :--- | | Occupancy | 62.7% | 76.0% | (17.5)% | | ADR | $152.63 | $160.91 | (5.1)% | | RevPAR | $95.71 | $122.32 | (21.8)% | - Total revenue for Q1 2020 was **$60.2 million**, a decrease of **20.4%** from **$75.7 million** in Q1 2019, primarily due to the COVID-19 pandemic[127](index=127&type=chunk)[130](index=130&type=chunk) - Total hotel operating expenses decreased by **13.1%** to **$36.3 million**, reflecting cost reduction measures in response to lower revenues and occupancy[137](index=137&type=chunk) - The company recorded a net loss of **$28.1 million** in Q1 2020, compared to net income of **$1.6 million** in Q1 2019, largely driven by lower revenue and a **$15.3 million** impairment charge[153](index=153&type=chunk)[141](index=141&type=chunk) [Non-GAAP Financial Measures](index=33&type=section&id=Non-GAAP%20Financial%20Measures) FFO and Adjusted FFO (In thousands) | FFO and Adjusted FFO (In thousands) | Three months ended March 31, 2020 | Three months ended March 31, 2019 | | :--- | :--- | :--- | | Net (loss) income | $(28,111) | $1,628 | | FFO attributable to common share and unit holders | $3,492 | $16,156 | | Adjusted FFO attributable to common share and unit holders | $6,262 | $16,173 | EBITDA and Adjusted EBITDA (In thousands) | EBITDA and Adjusted EBITDA (In thousands) | Three months ended March 31, 2020 | Three months ended March 31, 2019 | | :--- | :--- | :--- | | Net (loss) income | $(28,111) | $1,628 | | EBITDA | $(4,142) | $25,952 | | EBITDAre | $12,535 | $25,952 | | Adjusted EBITDA | $16,509 | $27,028 | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2020, the company had cash, cash equivalents, and restricted cash of approximately **$69.6 million**, a significant increase from **$20.2 million** at year-end 2019[172](index=172&type=chunk) - The company drew down heavily on its **$250.0 million** revolving credit facility, with outstanding borrowings increasing to **$173.0 million** at March 31, 2020, from **$90.0 million** at December 31, 2019[177](index=177&type=chunk) - On May 6, 2020, the company amended its credit facility to waive financial covenants through March 31, 2021, and ensure access to the full facility size, in exchange for stricter limits on debt, dividends, and capital expenditures[180](index=180&type=chunk) - Planned 2020 capital expenditures have been reduced by approximately **$10 million** as a result of the COVID-19 pandemic[185](index=185&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk.) The company's primary market risk is interest rate exposure, with a **100 basis point** increase on **$173.0 million** floating-rate debt adding **$1.7 million** in annual interest Debt Maturities by Rate Type (as of March 31, 2020, in thousands) | Debt Maturities by Rate Type (as of March 31, 2020, in thousands) | Total | Fair Value | | :--- | :--- | :--- | | Floating rate debt | $173,000 | $173,000 | | Average interest rate | 3.48% | N/A | | Fixed rate debt | $494,564 | $468,690 | | Average interest rate | 4.66% | N/A | - A hypothetical **100 basis point** increase in the variable interest rate on the **$173.0 million** of floating rate debt outstanding would result in approximately **$1.7 million** of additional annual interest expense[204](index=204&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded disclosure controls and procedures were effective as of quarter-end, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2020[207](index=207&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the first quarter of 2020[208](index=208&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings.) The company's hotel manager, IHM, faces class-action lawsuits for wage and hour violations, with the company accruing **$0.7 million** for its estimated indemnification exposure - The company's hotel manager, IHM, is a defendant in several class action lawsuits in California related to alleged wage and hour law violations[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk) - As of March 31, 2020, the company has accrued **$0.7 million** (**$0.1 million** for Ruffy/Doonan cases and **$0.6 million** for Perez class actions) as its estimated total exposure for these litigations[210](index=210&type=chunk)[211](index=211&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors.) The COVID-19 pandemic is a primary risk factor, causing severe adverse impacts on the company's financial condition and operations, including declining travel demand and potential debt covenant non-compliance - The COVID-19 pandemic is identified as a primary risk factor, causing a severe negative impact on the U.S. and global economies, financial markets, and the lodging industry[212](index=212&type=chunk)[214](index=214&type=chunk) - Specific risks stemming from the pandemic include a sharp decline in group, business, and leisure travel; reduced hotel operations; potential default on debt covenants; difficulty accessing capital; and suspension of dividends[215](index=215&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) There were no unregistered sales of equity securities during the period - None[219](index=219&type=chunk) [Defaults Upon Senior Securities](index=45&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) There were no defaults upon senior securities during the period - None[221](index=221&type=chunk) [Other Information](index=45&type=section&id=Item%205.%20Other%20Information.) No other information was reported under this item - None[225](index=225&type=chunk) [Exhibits](index=46&type=section&id=Item%206.%20Exhibits.) This section lists the exhibits filed with the Form 10-Q, including amendments to the credit agreement and officer certifications - Key exhibits filed include the First Amendment to the Amended and Restated Credit Agreement, dated May 6, 2020, and CEO/CFO certifications[227](index=227&type=chunk)

Chatham Lodging Trust (NYSE:CLDT) Q4 2019 Earnings Conference Call February 26, 2020 10:00 AM ET Company Participants Chris Daly - President of Daly Gray Public Relations Jeff Fisher - Chairman, President & Chief Executive Officer Dennis Craven - Executive Vice President & Chief Operating Officer Jeremy Wegner - Senior Vice President & Chief Financial Officer Conference Call Participants Anthony Powell - Barclays Ari Klein - BMO Capital Markets Bryan Maher - B. Riley Tyler Batory - Janney Capital Markets Op ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | --- | --- | --- | |----------------------------------------------------------------------------|--------------------------------------------------|---------------------- ...

CHATHAM LODGING TRUST COMPANY PRESENTATION November 2019 Safe Harbor Disclosure We make forward-looking statements in this presentation that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, cash flow and plans and objectives. When we use the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar exp ...

Financial Data and Key Metrics Changes - RevPAR for the third quarter declined 0.3%, which was at the upper end of the guidance range of flat to minus 1.5% [10][29] - Adjusted EBITDA rose over 3% and adjusted FFO rose over 2% compared to the previous year [5][27] - Net income for the quarter was $10.1 million, down from $14.7 million in Q3 2018, primarily due to impairments [26] Business Line Data and Key Metrics Changes - RevPAR for the 40 comparable wholly owned hotels was $145, with ADR rising 0.5% to $173 and occupancy declining 80 basis points to 85% [14] - Other revenue significantly increased, with parking revenue up $400,000 or 22% in the quarter [20][21] Market Data and Key Metrics Changes - Silicon Valley showed strong performance with RevPAR up almost 5% to $194, while Houston struggled with a 17% decline to $84 [16][19] - Washington D.C. experienced a RevPAR gain of 5.4% to $152, driven by strong performance at the Tysons Residence Inn [17] Company Strategy and Development Direction - The company plans to explore asset sales on a limited and opportunistic basis to invest in development opportunities, such as the $65 million Warner Center project in LA [12] - Acquisitions remain challenging due to unreasonable seller expectations regarding cap rates [12] Management Comments on Operating Environment and Future Outlook - Management indicated that maintaining operating margins will require approximately a 2% RevPAR gain on a stabilized basis [35] - The company expects Q4 RevPAR to decline by 5% to 6.5%, influenced by difficult comparisons from the previous year [29][30] Other Important Information - The balance sheet remains strong with $86 million drawn under the revolving credit facility and $164 million of remaining availability [28] - Full year adjusted EBITDA is now expected to be between $128.7 million and $131.1 million [32] Q&A Session Summary Question: How should we think about the trade-off between RevPAR and EBITDA for next year? - Management indicated that maintaining margins will be challenging in Q4 due to expected RevPAR declines, but they believe a 2% gain may help maintain margins in 2020 [34][35] Question: Can you discuss the performance of specific markets versus budgets? - Silicon Valley outperformed expectations, while Houston and Boston met expectations, and Los Angeles underperformed due to weaker demand [39][40] Question: What is the status of the 2018 acquisitions? - The 2018 acquisitions are underperforming in total revenue, but there are signs of improvement, particularly at the Summerville Residence Inn [42] Question: What are the labor cost pressures in key markets? - Labor costs are particularly pressured in California and Seattle due to high demand and low availability of labor [54]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements.) This section presents Chatham Lodging Trust's unaudited consolidated financial statements for Q3 2019, including balance sheets, operations, equity, and cash flows Consolidated Balance Sheet Highlights (unaudited) | (In thousands) | September 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Total Assets** | **$1,453,500** | **$1,439,709** | | Investment in hotel properties, net | $1,352,891 | $1,373,773 | | Cash and cash equivalents | $10,257 | $7,192 | | **Total Liabilities** | **$661,465** | **$632,291** | | Mortgage debt, net | $497,640 | $501,782 | | Revolving credit facility | $86,000 | $81,500 | | **Total Equity** | **$792,035** | **$807,418** | Consolidated Statements of Operations Highlights (unaudited) | (In thousands, except per share data) | Three Months Ended Sep 30, 2019 | Three Months Ended Sep 30, 2018 | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$90,080** | **$88,897** | **$253,631** | **$247,187** | | Operating Income | $19,898 | $20,375 | $45,924 | $49,759 | | **Net Income** | **$10,098** | **$14,691** | **$21,251** | **$31,044** | | Net Income Attributable to Common Shareholders | $10,002 | $14,580 | $21,052 | $30,813 | | **Diluted EPS** | **$0.21** | **$0.31** | **$0.44** | **$0.66** | Consolidated Statements of Cash Flows Highlights (unaudited) | (In thousands) | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | $69,681 | $71,431 | | Net cash used in investing activities | ($35,696) | ($40,484) | | Net cash used in financing activities | ($39,928) | ($28,793) | | **Net change in cash, cash equivalents and restricted cash** | **($5,943)** | **$2,154** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses the company's financial performance, comparing Q3 and nine-month results, detailing operating expenses, non-GAAP measures, liquidity, and capital plans - The company projects a 2019 RevPAR change of **-2.0% to -1.5%** compared to 2018, citing elevated room supply growth in the Upscale segment[125](index=125&type=chunk) Q3 2019 vs Q3 2018 Performance | Metric | Q3 2019 | Q3 2018 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $90.1M | $88.9M | +1.3% | | Net Income | $10.1M | $14.7M | -31.3% | | Same Property RevPAR | - | - | -0.3% | Nine Months 2019 vs 2018 Performance | Metric | YTD 2019 | YTD 2018 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $253.6M | $247.2M | +2.6% | | Net Income | $21.3M | $31.0M | -31.3% | | Same Property RevPAR | - | - | -0.5% | Adjusted FFO and Adjusted EBITDA (Non-GAAP) | (In thousands) | Q3 2019 | Q3 2018 | YTD 2019 | YTD 2018 | | :--- | :--- | :--- | :--- | :--- | | Adjusted FFO | $28,604 | $28,370 | $72,449 | $72,280 | | Adjusted EBITDA | $39,412 | $38,629 | $105,096 | $102,593 | - The company is developing a hotel in Los Angeles, CA, with expected total development costs of approximately **$65 million**; as of the report date, **$15.2 million** in costs have been incurred[221](index=221&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk.) The company's primary market risk is interest rate changes on its long-term debt, mitigated by fixed-rate or low-margin variable-rate debt, with a 100 basis point increase in variable rates raising annual interest expense by approximately **$0.9 million** Debt Profile as of September 30, 2019 | Debt Type | Balance Outstanding (In millions) | Weighted Avg. Interest Rate | | :--- | :--- | :--- | | Floating Rate | $86.0 | 4.45% | | Fixed Rate | $499.1 | 4.66% | - A hypothetical **100 basis points** increase on the variable interest rate would result in an additional annual interest expense of approximately **$0.9 million**[239](index=239&type=chunk) - The estimated fair value of the Company's fixed-rate debt was **$509.6 million** as of September 30, 2019, compared to a carrying value of **$499.1 million**[237](index=237&type=chunk)[238](index=238&type=chunk) [Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures.) The company's disclosure controls and procedures were effective as of September 30, 2019, with no material changes to internal control over financial reporting during Q3 - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of the end of the period[242](index=242&type=chunk) - **No changes** occurred in the company's internal control over financial reporting during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[243](index=243&type=chunk) [PART II. OTHER INFORMATION](index=47&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings.) The company's hotel manager, IHM, is defending two class-action lawsuits in California for wage and hour violations, with **$0.1 million** accrued for potential exposure as of September 30, 2019 - The company's hotel manager, IHM, is defending **two class-action lawsuits** in California related to alleged misclassification of managerial staff and other wage and hour violations[244](index=244&type=chunk) - As of September 30, 2019, the company has accrued **$0.1 million**, representing its estimated total exposure to the litigation[244](index=244&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors.) This section supplements the annual report's risk factors, focusing on hotel development risks including construction delays, cost overruns, permitting, and capital raising challenges - The company is exposed to risks associated with its **hotel development project** in Los Angeles, California[246](index=246&type=chunk) - Key development risks include **construction delays, cost overruns, obtaining governmental permits, and potential inability to raise capital**[246](index=246&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) The company reported no unregistered sales of equity securities during the reporting period - None[250](index=250&type=chunk) [Defaults Upon Senior Securities](index=48&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) The company reported no defaults upon its senior securities - None[252](index=252&type=chunk) [Mine Safety Disclosures](index=48&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the company's operations - Not applicable[254](index=254&type=chunk) [Other Information](index=48&type=section&id=Item%205.%20Other%20Information.) No information was reported under this item - None[256](index=256&type=chunk) [Exhibits](index=49&type=section&id=Item%206.%20Exhibits.) This section lists the exhibits filed with the report, including corporate governance documents and certifications from the CEO and CFO as required by the Sarbanes-Oxley Act - The report includes exhibits such as **corporate governance documents** (Articles of Amendment, Bylaws) and **certifications** required under Sections 302 and 906 of the Sarbanes-Oxley Act[260](index=260&type=chunk)

Chatham Lodging Trust (NYSE:CLDT) Q2 2019 Earnings Conference Call July 31, 2019 10:00 AM ET Company Participants Chris Daly - IR Jeffrey Fisher - Chairman, President & CEO Dennis Craven - EVP & COO Jeremy Wegner - SVP & CFO Conference Call Participants Anthony Powell - Barclays Bank Bryan Maher - B. Riley FBR, Inc. Tyler Batory - Janney Montgomery Scott Operator Greetings, and welcome to Chatham Lodging Trust's Second Quarter 2019 Financial Results Conference Call. [Operator Instructions]. As a reminder, t ...

Financial Performance - Total revenue for Q2 2019 was $87.874 million, an increase of 2.9% compared to $85.374 million in Q2 2018[14] - Net income attributable to common shareholders for Q2 2019 was $9.437 million, down 29.0% from $13.385 million in Q2 2018[14] - Operating income before loss on sale of hotel property was $19.433 million, slightly up from $19.134 million in the same period last year[14] - Net income for the six months ended June 30, 2019, was $11,153,000, compared to $16,353,000 for the same period in 2018, representing a decrease of approximately 32.5%[26] - Net income for the three months ended June 30, 2019, was $9.5 million, down from $13.5 million for the same period in 2018, reflecting a decrease of 29.6%[151] - Net income decreased to $11.2 million for the six months ended June 30, 2019, down from $16.4 million for the same period in 2018, reflecting a change of approximately 31.4%[182] Revenue Breakdown - Room revenue comprised 91.0% of total revenue for the quarter ended June 30, 2019, amounting to $80.0 million, up from $78.3 million in 2018, reflecting a 2.2% increase[125] - Revenue from the Residence Inn Summerville since acquisition was $1.024 million with an operating income of $409,000, while the Courtyard Dallas Downtown generated $1.990 million in revenue and $606,000 in operating income[46] - Food and beverage revenue increased by $0.3 million to $2.5 million for the quarter ended June 30, 2019, compared to $2.2 million in 2018[126] - Other operating revenue rose by $0.4 million to $3.9 million for the quarter ended June 30, 2019, driven by increases in parking and miscellaneous room income[127] - Room revenue for the six months ended June 30, 2019, was $148.1 million, up 2.4% from $144.5 million in 2018, with a contribution of $5.1 million from two hotels acquired in 2018[157] - Food and beverage revenue increased to $5.0 million for the six months ended June 30, 2019, a rise of 15.1% compared to $4.3 million in 2018[158] - Other operating revenue rose to $7.6 million for the six months ended June 30, 2019, up 15.2% from $6.6 million in 2018[159] Expenses and Losses - Total hotel operating expenses increased to $44.129 million in Q2 2019, compared to $42.967 million in Q2 2018, reflecting a rise of 2.7%[14] - Hotel operating expenses increased by $3.3 million to $86.0 million for the six months ended June 30, 2019, primarily due to the two hotels acquired in 2018[166] - Loss on sale of hotel property increased by $3.3 million for the six months ended June 30, 2019, due to the sale of two hotels in May 2019[175] - Loss on sale of hotel property increased by $3.3 million for the three months ended June 30, 2019, due to the sale of two hotels in Pennsylvania[144] - Depreciation and amortization expense rose by $1.1 million from $11.9 million in Q2 2018 to $13.0 million in Q2 2019, with $0.6 million attributed to the two hotels acquired in 2018[139] Cash and Assets - Cash and cash equivalents increased to $8.847 million as of June 30, 2019, from $7.192 million at the end of 2018[12] - Total assets as of June 30, 2019, were $1.444 billion, a slight increase from $1.439 billion at the end of 2018[12] - The company had cash, cash equivalents, and restricted cash of approximately $26.9 million as of June 30, 2019, down from $32.3 million at the end of 2018[203] Debt and Financing - Mortgage debt decreased to $499.403 million from $501.782 million at the end of 2018, showing a reduction of 0.5%[12] - Total debt outstanding as of June 30, 2019, was $578,403 thousand, a slight decrease from $583,282 thousand as of December 31, 2018[61] - The maximum borrowing availability under the senior unsecured revolving credit facility was $250.0 million as of June 30, 2019[63] - The company had $171.0 million available under its $250.0 million senior unsecured revolving credit facility as of June 30, 2019[203] Dividends and Shareholder Returns - The company declared distributions of $0.33 per common share for both Q2 2019 and Q2 2018[14] - The company declared dividends of $0.66 per share for the six months ended June 30, 2019, totaling $30,814,000, compared to $30,294,000 for the same period in 2018[22] - The Company declared total common share dividends of $0.33 per share for the three months ended June 30, 2019, and $0.66 per share for the six months ended June 30, 2019[72] Joint Ventures and Acquisitions - As of June 30, 2019, the Company wholly owned 40 hotels with a total of 6,092 rooms across 15 states and the District of Columbia[35] - The Company holds a 10.3% noncontrolling interest in a joint venture owning 47 hotels and a 10% interest in another joint venture owning 48 hotels, totaling 12,500 rooms[35] - The Company acquired the Residence Inn Summerville for $20.8 million and the Courtyard Dallas Downtown for $49.0 million in 2018[45] Tax and Regulatory Matters - The Company continues to recognize a full valuation allowance equal to 100% of the gross deferred tax assets due to uncertainty regarding the utilization of these assets[69] - The Company was notified of an ongoing examination by the IRS regarding its tax return for the year ended December 31, 2016, which could materially impact its financial position[70] Legal Matters - The company is involved in two class action lawsuits related to wage and hour law violations, with an estimated exposure of $0.1 million included in accounts payable[102]

Portfolio & Performance - Chatham Lodging Trust has a superior quality portfolio of 40 premium-branded, upscale extended stay and select service hotels[6] - The company's operating platform generates the highest margins and highest limited service RevPAR[6] - Chatham focuses on investing in great real estate in the best markets, leading to high RevPAR compared to select and full-service brands[10, 11] - Chatham has the highest RevPAR of the three lodging REITs focused almost entirely on the limited service segment[12] - The company's model drives high Hotel EBITDA margins, reaching 39% as of year-end 2018[15] Capital Allocation & Structure - Chatham is actively recycling capital to enhance portfolio quality, including acquisitions of five high-quality hotels for $202 million[6, 19] - The company's weighted average cost of debt is 4.6%, with 84% of debt outstanding at a fixed rate[28] - Chatham's annual dividend has grown 89% since its IPO in 2010, with a 2019E payout ratio of 71%[18] Market Presence - 41% of Chatham's portfolio is located on the West Coast and 29% in the Northeast[7] - The company has the 2nd highest exposure to West Coast markets of all U S lodging REITs[7] - Supply growth in Chatham's markets has been declining, with upscale supply growth at 1.8% as of 12/31/2018[13, 14] Financial Outlook - The company projects a portfolio RevPAR growth between (1.5%) and 0.5% for 2019[26] - The company anticipates an adjusted EBITDA between $130.2 million and $134.7 million for 2019[26]

Financial Data and Key Metrics Changes - The company reported a net income of $1.6 million for Q1 2019, down from $2.9 million in Q1 2018 [29] - Adjusted FFO decreased by 1.8% to $16.2 million, with adjusted FFO per share at $0.34 compared to $0.36 in Q1 2018 [30] - Adjusted EBITDA increased by 2.3% to $27 million compared to $26.4 million in Q1 2018 [31] Business Line Data and Key Metrics Changes - Total revenue increased year-over-year despite a $600,000 decline in actual room revenue, with parking revenue up 17% and F&B revenue up 9% [6][7] - RevPAR for 40 comparable hotels declined by 1%, with occupancy up 50 basis points to 76% and ADR down 1.5% to $159 [15][29] Market Data and Key Metrics Changes - RevPAR in Silicon Valley increased by 3.6% to $183, while San Diego saw a 13% increase due to easier comps [17][18] - Washington D.C. experienced a 5% decline in RevPAR, impacted by renovations and the government shutdown [19] - The Northeastern coastal market hotels had a strong quarter with a 4% increase in RevPAR [20] Company Strategy and Development Direction - The company plans to explore asset sales to fund acquisitions or developments, with a focus on value-add opportunities [12] - Development of one or two hotels in attractive markets is being considered, with a preference for risk-adjusted returns over stabilized low cap rates [13] - The company has raised nearly $200 million over the past two years, positioning itself well for potential developments [13] Management's Comments on Operating Environment and Future Outlook - Management noted that RevPAR growth remains sluggish, but asset management efforts are focused on maximizing revenue and minimizing expenses [5] - The company expects Q2 RevPAR growth to be between 0.5% to 1.5%, with full-year guidance unchanged [33] - Challenges in the Boston area due to difficult Q4 comparisons are anticipated to impact overall 2019 RevPAR growth by approximately 65 basis points [33] Other Important Information - The company’s balance sheet remains strong, with net debt at $588 million and a leverage ratio of 35.1% [32] - Payroll and benefits costs increased by 2.7% on a per occupied room basis, with wages up 4.9% and benefits down 3.9% [24][25] Q&A Session Summary Question: What is the outlook for payroll and benefits increase? - Management expects moderation around a 3% range for total wages and benefits [35][36] Question: How much of the RevPAR weakness is attributed to renovations versus supply and tough comps? - Renovations accounted for about 60 basis points of the RevPAR decline, with total impact estimated at around one full point [38] Question: What is the outlook for new supply in the markets for 2020 and 2021? - Supply additions are expected to remain around 2% for the next year based on current trends [39] Question: What is the current state of acquisitions and dispositions? - The company is seeing a wide bid-ask spread in the market, but is looking for opportunistic deals [40] Question: Can you provide insights on March performance and expectations for April? - Strong corporate business in Silicon Valley and San Diego contributed positively to March performance [44][45] Question: How are recent acquisitions performing? - Charleston has underperformed expectations, while Dallas has exceeded occupancy expectations [47][49] Question: What are the potential development markets? - The company is focused on West Coast markets, particularly Southern California and Silicon Valley, for potential developments [51][52]