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Chatham Lodging Trust(CLDT) - 2024 Q4 - Annual Results
CLDTChatham Lodging Trust(CLDT)2025-02-26 14:35

Financial Performance - Portfolio Revenue Per Available Room (RevPAR) increased 4% to 129inQ42024comparedtoQ42023,withoccupancyrising5129 in Q4 2024 compared to Q4 2023, with occupancy rising 5% to 74%[3] - Net loss applicable to common shareholders was 1.9 million in Q4 2024, an improvement from a net loss of 9.3millioninQ42023,resultinginanetlossperdilutedshareof9.3 million in Q4 2023, resulting in a net loss per diluted share of (0.08) versus (0.23)lastyear[4]−AdjustedEBITDAroseto(0.23) last year[4] - Adjusted EBITDA rose to 21.1 million in Q4 2024, up from 20.8millioninQ42023[3]−Grossoperatingprofit(GOP)marginsimprovedby150basispointsto4120.8 million in Q4 2023[3] - Gross operating profit (GOP) margins improved by 150 basis points to 41% in Q4 2024, compared to 39% in Q4 2023[4] - Total revenue for Q4 2024 was 75,111,000, an increase of 3.8% compared to 72,278,000inQ42023[45]−Roomrevenueincreasedto72,278,000 in Q4 2023[45] - Room revenue increased to 68,528,000 in Q4 2024, up from 65,980,000inQ42023,reflectingagrowthof3.765,980,000 in Q4 2023, reflecting a growth of 3.7%[45] - The company reported a net loss attributable to common shareholders of 3,695,000 for Q4 2024, compared to a net loss of 10,966,000inQ42023,indicatinganimprovementof66.410,966,000 in Q4 2023, indicating an improvement of 66.4%[45] - The company reported a total operating loss of (218,000) for Q4 2024, an improvement from a loss of (2,743,000)inQ42023[45]−ForthethreemonthsendedDecember31,2024,thenetlossattributabletocommonshareswas(2,743,000) in Q4 2023[45] - For the three months ended December 31, 2024, the net loss attributable to common shares was 3,841,000, compared to a loss of 11,320,000forthesameperiodin2023[47]−AdjustedFundsFromOperations(FFO)forthethreemonthsendedDecember31,2024,was11,320,000 for the same period in 2023[47] - Adjusted Funds From Operations (FFO) for the three months ended December 31, 2024, was 10,030,000, up from 9,826,000intheprioryear,representinga2.19,826,000 in the prior year, representing a 2.1% increase[47] - For the year ended December 31, 2024, the net income was 4,035,000, compared to 2,488,000in2023,indicatingayear−over−yearincreaseof62.32,488,000 in 2023, indicating a year-over-year increase of 62.3%[47] - Adjusted Hotel EBITDA for the year ended December 31, 2024, was 111,219,000, slightly up from 110,933,000in2023,showingamarginalincreaseof0.3110,933,000 in 2023, showing a marginal increase of 0.3%[49] Capital Expenditures and Debt Management - In Q4 2024, the company incurred capital expenditures of approximately 6 million[22] - The 2025 capital expenditure budget is approximately 26million,including26 million, including 16 million for renovations at three hotels[23] - The company reduced net debt by 29millionin2024,loweringtheoverallleverageratiofrom2529 million in 2024, lowering the overall leverage ratio from 25% to 23%[7] - As of December 31, 2024, the company had net debt of 389 million, down 29millionfromthepreviousyear,withtotaldebtoutstandingat29 million from the previous year, with total debt outstanding at 409 million[24] - The leverage ratio was approximately 23%, down from 25% on December 31, 2023[24] - The company repaid a 16millionmaturingmortgage,enhancingfinancialflexibilityforacquisitions[25]−Mortgagedebtwasreducedsignificantlyto16 million maturing mortgage, enhancing financial flexibility for acquisitions[25] - Mortgage debt was reduced significantly to 157,211,000 in 2024 from 394,544,000in2023,adecreaseof60.2394,544,000 in 2023, a decrease of 60.2%[43] - Total liabilities decreased to 462,684,000 in 2024, down from 539,554,000in2023,areductionof14.3539,554,000 in 2023, a reduction of 14.3%[43] Hotel Operations and Market Performance - RevPAR growth in Silicon Valley hotels was up 14% in Q4 2024, significantly contributing to overall portfolio performance[10] - Chatham's occupancy for Q4 2024 was 74%, just shy of the 76% occupancy in Q4 2019, indicating a recovery in business travel demand[11] - The company anticipates continued RevPAR growth in 2025, driven by strong performance in technology-dependent markets[6] - The company expects a 6.8 million impact on 2025 Hotel EBITDA from hotels sold in 2024 and 2025[30] - 2025 guidance includes RevPAR of 125−125-127 for Q1 and 143−143-147 for the full year, with total hotel revenue projected at 298−298-305 million[27] - Adjusted FFO for FY 2025 is projected to be between 52millionand52 million and 57 million, with adjusted FFO per diluted share of 1.01−1.01-1.11[27] Shareholder Returns - The preferred share dividend declared was 0.41406pershare,andthecommonsharedividendwas0.41406 per share, and the common share dividend was 0.07 per share[26] - The company declared distributions per common share of 0.07forbothQ42024andQ42023[45]AssetManagement−Thecompanyowns36hotelstotaling5,475rooms/suitesacross15statesandtheDistrictofColumbia[29]−Totalassetsdecreasedto0.07 for both Q4 2024 and Q4 2023[45] Asset Management - The company owns 36 hotels totaling 5,475 rooms/suites across 15 states and the District of Columbia[29] - Total assets decreased to 1,254,681,000 as of December 31, 2024, down from 1,343,930,000in2023,adeclineof6.61,343,930,000 in 2023, a decline of 6.6%[43] - The company’s accumulated deficit increased to (289,130,000) in 2024 from (271,651,000)in2023[43]−Thecompanyreportedanimpairmentlossof(271,651,000) in 2023[43] - The company reported an impairment loss of 4,256,000 for both the three months and the year ended December 31, 2024, consistent with the previous year's figures[47]