Chatham Lodging Trust (NYSE:CLDT) Q3 2023 Results Conference Call November 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

Tyler Batory - Oppenheimer

Operator

Good day, and welcome to Chatham Lodging Trust Third 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, Sarah. Good morning, everyone. Welcome to Chatham Lodging Trust third 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 November 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 third 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

Thanks, Chris, and good morning, everyone. I appreciate everyone being on the call this morning with us. We know it's a busy morning out there in earnings land. It was a successful quarter, given our earnings beat, but also an interesting quarter, given the unusual and difficult comps created by the substantial cancellation of the 2023 tech intern programs, as we have talked about numerous times in Silicon Valley, Bellevue, Washington and Austin, Texas.

In the third quarter alone, the loss of intern business meant we were missing approximately $8 million of room revenue and $5 million of operating profit. As we all know, starting about this time last year, tech companies started announcing massive layoffs, hiring freezes and cost cutting initiatives. Less than six months later, those same companies were announced significant investments in artificial intelligence, chip manufacturing, and reshoring of technology manufacturing back to the U.S.