Chatham Lodging Trust(US:CLDT)2019-06-06 20:51Portfolio & 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]