Chatham Lodging Trust (NYSE:CLDT) Q3 2024 Earnings Call November 7, 2024 10:00 AM ET

Company Participants

Chris Daly - Investor Relations
Jeff Fisher - Chairman, President, and Chief Executive Officer
Dennis Craven - Executive Vice President and Chief Operating Officer
Jeremy Wagner - Senior Vice President and Chief Financial Officer

Conference Call Participants

Jonathan Jenkins - Oppenheimer & Company

Operator

Greetings and welcome to the Chatham Lodging Third Quarter 2024 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Chris Daly. Thank you. Chris, you may begin.

Chris Daly

Thank you, Julian. Good morning, everyone, and welcome to the Chatham Lodging Trust third quarter 2024 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 November 7, 2024, 2024, 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 other earnings release, which contains reconciliations to non-GAAP financial measures referenced on this call on our website atchathamlodgingtrust.com.

Now to provide you with some insight into Chatham’s 2024 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 Wagner, Senior Vice President, and Chief Financial Officer.

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

Jeff Fisher

Thanks, Chris, and I certainly appreciate everyone joining us this morning for our call. We’ve got some good news here throughout. Before I get into our quarterly results, I’d like to provide an update on some key corporate initiatives that we’ve been undertaking. First, we’ve entered into separate contracts to sell 5 hotels and are hopeful that those transactions close in this fourth quarter. When closed, we’ll generate proceeds of approximately $80 million. The 5 hotels slated for closing are on average 23 years old, among the 6 lowest RevPAR hotels in our portfolio.

They have forecasted 2024 RevPAR of $101 and importantly, are in need of renovations within the next 24 months. We will use these proceeds to initially pay down debt, but ultimately make additional investments to accretively grow EBITDA and FFO. This recycling initiative will enable us to continue to add hotels in new markets or expand our presence in existing markets we will continue to look at opportunities to sell assets and reinvest in hotels that enhance our portfolio quality and growth profile.