Chatham Lodging Updates Third Quarter Operating Outlook
October 10 2016 - 4:58PM
Chatham Lodging Trust (NYSE:CLDT), a lodging real estate investment
trust (REIT) that invests in upscale, extended-stay hotels and
premium-branded, select-service hotels and owns 133 hotels wholly
or through joint ventures, today announced preliminary room revenue
per available room (“RevPAR”) results for the quarter ended
September 30, 2016, and updated its outlook for net income, net
income per diluted share, adjusted EBITDA and adjusted FFO per
share.
|
|
|
|
|
Previous Q3
2016 |
|
Current Q3 2016 |
|
Outlook as of 8/3/2016 |
|
Outlook as of 10/10/2016 |
|
2016 |
|
2016 |
Net income |
$13.4-$14.9 M |
|
$12.8-$13.3 M |
Net income per diluted share |
$0.35-$0.38 |
|
$0.33-$0.34 |
RevPAR Growth |
-1.0 to +1.0% |
|
|
-2.1 |
% |
Adjusted EBITDA |
$38.0-$39.5 M |
|
$37.0-$37.5 M |
Adjusted FFO per Share |
$0.72-$0.75 |
|
$0.70-$0.71 |
|
|
|
|
“We faced tough comparisons over a very strong 2015 third
quarter when our occupancy reached an all-time high of 88 percent
for our owned portfolio,” noted Jeffrey H. Fisher, Chatham’s
president and chief executive officer. “Our RevPAR recently
was adversely impacted more than expected due to lower GDP growth
that is restraining business travel, as well as new supply and a
significant drop in demand in our oil-industry influenced Houston
and western Pennsylvania markets. We have six hotels in
those markets and those hotels experienced a RevPAR decline of 21
percent. This performance negatively impacted our RevPAR by
approximately 200 basis points. Our reduced guidance with respect
to adjusted EBITDA and FFO per share is reflective of reduced
RevPAR performance, increased wage pressures and rising guest
acquisition costs primarily from online travel agency
commissions.”
The company also announced that it will report third quarter
2016 financial results on Thursday, November 3, 2016, before the
opening of the market. That same day at 10:00 a.m. ET,
Jeffrey H. Fisher, Chatham’s chief executive officer, Dennis M.
Craven, executive vice president and chief operating officer, and
Jeremy Wegner, senior vice president and chief financial officer,
will host a conference call to review third quarter 2016 financial
results.
Shareholders and other interested parties may listen to a
simultaneous webcast of the conference call on the Internet by
logging onto Chatham’s Web site, http://chathamlodgingtrust.com/,
or www.streetevents.com, or may participate in the conference call
by dialing 1-877-407-0789 and referencing Chatham Lodging
Trust. A recording of the call will be available by telephone
until 11:59 p.m. ET on Thursday, November 10, 2016, by dialing
1-844-512-2921, reference number 13647058. A replay of the
conference call will be posted on Chatham’s website.
About Chatham Lodging TrustChatham Lodging
Trust is a self-advised, publicly-traded real estate investment
trust focused primarily on investing in upscale, extended-stay
hotels and premium-branded, select-service hotels. The company owns
interests in 133 hotels totaling 18,178 rooms/suites, comprised of
38 properties it wholly owns with an aggregate of 5,680
rooms/suites in 15 states and the District of Columbia and a
minority investment in two joint ventures that own 95 hotels with
an aggregate of 12,498 rooms/suites. Additional information about
Chatham may be found at chathamlodgingtrust.com.
Forward-Looking Statement Safe Harbor Note:
This press release contains forward-looking statements within the
meaning of federal securities regulations. These forward-looking
statements are identified by their use of terms and phrases such as
"anticipate," "believe," "could," "estimate," "expect," "intend,"
"may," "should," "plan," "predict," "project," "will," "continue"
and other similar terms and phrases, including references to
assumption and forecasts of future results. Forward-looking
statements are not guarantees of future performance and involve
known and unknown risks, uncertainties and other factors which may
cause the actual results to differ materially from those
anticipated at the time the forward-looking statements are made.
These risks include, but are not limited to: national and local
economic and business conditions, including the effect on travel of
potential terrorist attacks, that will affect occupancy rates at
the company’s hotels and the demand for hotel products and
services; operating risks associated with the hotel business; risks
associated with the level of the company’s indebtedness and its
ability to meet covenants in its debt agreements; relationships
with property managers; the company’s ability to maintain its
properties in a first-class manner, including meeting capital
expenditure requirements; the company’s ability to compete
effectively in areas such as access, location, quality of
accommodations and room rate structures; changes in travel
patterns, taxes and government regulations which influence or
determine wages, prices, construction procedures and costs; the
company’s ability to complete acquisitions and dispositions; and
the company’s ability to continue to satisfy complex rules in order
for the company to remain a REIT for federal income tax purposes
and other risks and uncertainties associated with the company’s
business described in the company's filings with the SEC. Although
the company believes the expectations reflected in such
forward-looking statements are based upon reasonable assumptions,
it can give no assurance that the expectations will be attained or
that any deviation will not be material. All information in this
release is as of October 10, 2016, 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.
Contact:
Chris Daly
Daly Gray Public Relations
(Media)
chris@dalygray.com
(703) 435-6293
Dennis Craven
Chief Operating Officer
(Company)
dcraven@cl-trust.com
(561) 227-1386
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