Chatham Lodging Trust (NYSE:CLDT) Q4 2023 Earnings Conference Call February 27, 2024 11:00 AM ET

Company Participants

Chris Daly - DG Public Relations

Jeffrey Fisher - Chairman, President, CEO

Jeremy Wegner - CFO & SVP

Dennis Craven - EVP & COO

Conference Call Participants

Anthony Powell - Barclays Capital

Operator

Greetings, welcome to Chatham Lodging Trust Fourth Quarter 2023 Financial Results Conference Call. [Operator Instructions]. Please note this conference is being recorded. I will now turn the call over to Chris Daly, Vice President of DG Public Relations. Thank you, you may begin.

Chris Daly

Thank you, . Good morning, everyone, and welcome to the Chatham Lodging Trust fourth-quarter 2023 results conference call.

Please note that many of our comments today are considered forward-looking statements 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 February 27, 2024, unless otherwise noted. And the company undertakes no obligation to update any forward-looking statements 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 contain reconciliations to non-GAAP financial measures referenced on this call on our website at chathamlodgingtrust.com.

Now to provide you with some insight in Chatham's 2023 fourth 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?

Jeffrey Fisher

Thanks, Chris, and I certainly appreciate everyone joining us this morning for our call. Before talking about the fourth quarter and 2024, I'd like to spend just a few minutes highlighting some noteworthy accomplishments as we look back at last year.

RevPAR growth of 6.1% with the growth split evenly between occupancy and ADR, exceeded industry performance by 25%. This is considerable growth considering we lost $12 million or 400 basis points of intern-related business from 2022 to 2023. Highest RevPAR of all select service lodging rates, demonstrating the high quality of our real estate portfolio.

We had a 25% rise in other department profits as we continue to drive non-room revenue profit. We reduced net debt by $26 million and our leverage ratio down to 25%. During that time, we repaid $150 million of maturing debt using available liquidity and successfully issued $83 million of fixed-rate debt.