Chatham Lodging Trust (NYSE:CLDT) Q2 2023 Earnings Conference Call August 2, 2023 10:00 AM ET

Company Participants

Chris Daly - President, DG Public Relations

Jeff Fisher - Chairman, President and CEO

Dennis Craven - EVP and COO

Jeremy Wegner - SVP and CFO

Conference Call Participants

Ari Klein - BMO Capital Markets

Anthony Powell - Barclays

Tyler Batory - Oppenheimer

Operator

Good morning, and welcome to Chatham Lodging Trust Second Quarter 2023 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions]. Please note, this event is being recorded.

I would now like to turn the conference over to Chris Daly, President of DG Public Relations. Please go ahead.

Chris Daly

Thank you, Jerry. Good morning, everyone. Welcome to Chatham Lodging Trust Second Quarter 2023 Results Conference Call. Please note that many of our comments today are considered forward-looking statement as defined by federal Securities Laws. These statements are subject 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, 2023, 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 which contains reconciliations to non-GAAP financial measures referenced on this call on our website at chathamlodgingtrust.com.

Now to provide you with some insight, to the Chatham 2023 second quarter results, allow me to introduce Jeff Fisher, Chairman, President and Chief Executive Officer; Dennis Craven, Executive Vice President and Chief Operating Officer; and Jeremy Wegner, Senior Vice President and Chief Financial Officer.

Let me turn the session over to Jeff Fisher. Jeff?

Jeff Fisher

Hey, thanks, Chris. And good morning, everyone. I certainly appreciate everyone being on the call this morning with us. For the fifth consecutive quarter we've outperformed the industry RevPAR growth with RevPAR growth over 5% for the quarter, driven by pretty equal increases in both occupancy and ADR.

Relative to 2019, RevPAR was down slightly just a little more than 1% for the quarter. In fact, versus 2019 RevPAR sequentially improved each month of 2023 through June. Relative to '19 RevPAR improved each month of the quarter, with RevPAR down 3%, 2% and 1%, a key indicator that business travel continues its recovery across the country. This is particularly impressive given the loss of most of the intern business in Silicon Valley, Bellevue, Washington and also in Austin, Texas. The loss of intern business impacted performance for about one-third of the second quarter and will impact two-thirds of this quarter and will make third quarter comparisons to last year and 2019 tougher.