Chatham Lodging Trust(US:CLDT)2022-05-04 20:30Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $55 million, up 75% compared to $31 million in Q1 2021 [29] - Adjusted EBITDA was $13.3 million, compared to approximately $1 million last year [32] - FFO per share was $0.07, up from a loss of $0.15 per share in the same quarter last year [32] - RevPAR for Q1 2022 was $88, representing a 56% increase from $57 in Q1 2021, but a 27.2% decline from $146 in Q1 2019 [39] Business Line Data and Key Metrics Changes - The five tech-driven hotels in Silicon Valley and Bellevue, which historically contributed 25% to 30% of EBITDA, saw a significant recovery with April RevPAR up 45% compared to Q1 figures [7][18] - GOP margins for Q1 2022 were 38% on RevPAR of $88, compared to 44% in Q1 2019 when RevPAR was $33 higher [30] Market Data and Key Metrics Changes - Weekday occupancy rose from 48% in January to 72% in April, indicating a strong recovery in business travel [15] - RevPAR in Austin increased from $115 in Q1 to $140 in April, driven by tech company expansions [21] Company Strategy and Development Direction - The company plans to close the sale of four older hotels for approximately $80 million, reallocating funds to pay down debt and pursue new acquisitions [8][10] - The focus remains on acquiring business-driven hotels, particularly in tech-centric markets, while also considering multifamily conversions for underperforming assets [9][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of business travel, particularly in tech markets, and noted a significant uptick in weekday demand [15][46] - The company anticipates continued improvement in performance metrics, with expectations for Q2 to show sequential growth [47] Other Important Information - The company has $158 million in liquidity, with no debt maturing in 2022 and only $114 million in 2023 [42][43] - Capital expenditures for the quarter were $4.1 million, with plans to reduce the total budget to approximately $19 million post-hotel sales [37] Q&A Session Summary Question: Have you seen any decline in leisure travel demand relative to 2021? - Management indicated that leisure demand remains strong, particularly in Northeastern hotels [50][51] Question: What is the outlook for occupancy recovery through the remainder of the year? - Management expects occupancy to approach 2019 levels in the second half of the year, driven by robust demand from corporate clients [60][62] Question: How do you feel about staffing levels as occupancy ramps up? - Management noted that the intern program will allow for high occupancy with reduced housekeeping needs, positioning them well for high-margin business [71] Question: Can you discuss the pricing valuations for the hotels being sold? - The four hotels generated $2.2 million of EBITDA in 2021, with attractive pricing based on a 6% cap rate on 2019 NOI [76] Question: What are the key metrics for reinstating the dividend? - Management stated that taxable income will drive the decision, considering various performance metrics [80]