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Sep 30, 2024
Chatham Q3 2024 Earnings Report
Chatham Lodging Trust's performance in the third quarter of 2024 reflected RevPAR growth, driven by strong performance in technology-dependent markets, while progressing on capital recycling initiatives.
Key Takeaways
Chatham Lodging Trust announced its third quarter 2024 results, featuring a 2.1 percent RevPAR growth excluding hotels under renovation. The company reported a net income of $4.3 million, with adjusted EBITDA at $29.6 million. It is progressing with asset recycling by selling five hotels, expecting net proceeds of approximately $80 million to reduce debt.
Generated RevPAR growth of 2.1 percent excluding hotels under renovation.
Net income reached $4.3 million, with earnings per diluted share at $0.05.
Adjusted EBITDA was $29.6 million and adjusted FFO was $17.6 million.
Entered agreements to sell five hotels, anticipating $80 million in net proceeds for debt reduction.
Revenue by Geographic Location
Forward Guidance
Chatham provided its fourth quarter 2024 guidance, anticipating RevPAR between $124 and $127 with a growth of 1% to 3%. Total hotel revenue is expected to be between $74 million and $75 million, with a net loss between $(6) million and $(4) million and an adjusted EBITDA between $19 million and $21 million.
Positive Outlook
- RevPAR growth of 1% to 3% is expected.
- Adjusted FFO per diluted share is projected between $0.15 and $0.18.
- Hotel EBITDA margins are anticipated to be between 30% and 32%.
- Company is expected to benefit from declining interest rate environment.
- Completion of hotel renovations by the end of the year.
Challenges Ahead
- Net loss is expected to be between $(6) million and $(4) million
- Net loss per diluted common share is projected between $(0.15) and $(0.11)
- Corporate cash administrative expenses are estimated at $3.3 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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