The following is a summary of the Chatham Lodging Trust (CLDT) Q1 2024 Earnings Call Transcript:
Financial Performance:
Chatham Lodging Trust reported a 2% increase in revenue per available room (RevPAR) and nearly 20% growth in other operating profit lines.
Free cash flow generated in Q1 2024 was $8.3 million, marking a 10% increase compared to the same period last year.
The company sold Hilton Garden in Denver Tech for $18 million with plans to reinvest in higher-growth hotels.
Their financial stability was enhanced by a $50 million increase in borrowings under their term loan.
Q1 2023 Hotel EBITDA was at $21 million, adjusted EBITDA was $18.9 million, and adjusted FFO per share was $0.16.
Business Progress:
The company has achieved growth through increased parking rates, improved retail market operation product offerings, and pricing in select markets.
The firm is strategic in its sale of assets, aiming to redeploy proceeds into higher growth hotels and markets, with a target of sales proceeds between $40 million - $100 million.
Anticipating more acquisition opportunities in 2024 and 2025, the company also repaid a $29 million maturing mortgage in April and plans further repayments.
They have pledged to continue outperforming their peers through internal growth, strategic balance sheet management, and business strategy.
Chatham Lodging Trust is looking forward to recycling capital over the next 6 to 18 months, focusing on acquisitions in markets with strong population and business growth.
The company expects a healthy quarter driven largely by the business travel segment and encouraging trends in April across various portfolios.
More details: Chatham Lodging Trust IR
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