CLDT - Earnings call transcript Q1 2021

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Operator

Greetings, ladies and gentlemen, and welcome to Chatham Lodging Trust's First Quarter 2021 Financial Results Conference Call. [Operator Instructions]. It is now my pleasure to introduce your host, Mr. Chris Daly. Sir, you may begin.

Chris Daly

Jen. you, Thank and Quarter everyone, the Lodging Chatham Good Results welcome Conference First XXXX Call. Trust morning, to Please note that forward-looking many of our comments defined federal statements today by securities laws. as are considered both subject risks in are most XX-K filings. Form other recent unknown, statements These our and uncertainties, as known to described SEC and and is All call May XXXX, as information on unless X, of this otherwise noted. to the no forward-looking statements the statements And company's any to in changes update the actual obligation company or to undertakes expectations. results conform

of copies contain financial referenced our find You filings which on SEC on can earnings release, our reconciliations and call chathamlodgingtrust.com. to measures website non-GAAP at this

Executive you Now President Officer; Operating Jeremy Jeff provide quarter Chairman, and results, Wegner, to me and President and Senior with to Craven, Chatham's Officer. Fisher, XXXX Executive first Chief Vice some insight Chief Financial President Chief introduce to and Vice allow Dennis Officer;

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

Jeffrey Fisher

$XXX March February, April to from driven great this in March a here to morning, the Thanks, be January, from again XX% grew April. to in in December; prior and occupancy, Good and after month, portfolio in to been our RevPAR everybody with up XX% XX% gains to December. The strong from XX% is have December January by from XX% in out February RevPAR increases April both to bottoming everyone. Sequentially Chris. XX% up to from in versus in which seeing We're growth It's XX% morning. from December. trend rate, $XXX

traveler debt we Most to $XX, breakeven seeing and business RevPAR and very critical real service are is see flow flow April expect demand moving corporate protecting all after finished level, importantly, shareholder strong, our this, we We and be Getting overhead. cash positive the forward about to cash to this at at value. are beginning. continued transient we expect as remains improvement the RevPAR of and return travel to and sequential happy leisure

performance the to reach that Warner and this critical XXXX in going and open and which incremental point, are we're have should outstanding. provide corporate now development Center hotel thrilled FFO to our We projected second Also, XXXX as REIT portfolio quarter to fourth been our the in is ramps revenue reaffirm our growth is and up. actions it that XXXX

Our negative cash exclude $XX since you development the When our over debt, flow million our Warner million has Center beginning has debt only the results been net we've declined pandemic. $XX actually executed Inn highly that great producing same operating our pandemic time that minimized burn. of cash been as sale frame throughout successful Valley Mission a we the and Residence in of

Our hotels has our extended-stay focus select-service sheet team, kept with operating balance hotels, strong. on our strong along particularly and

We emerge XXXX, liquidity. many We value. of until our and and will into cash significant lodging today's peers can have of no firmly pandemic available healthier absorbed all those maturities of Chatham have from the continue burn equity by to amounts that be and will believe the real financially debt way, who than

As acquisitive to move FFO grow we be we'll further such, as positioned forward. better and be

crisis, the you've losing to time, as and available. become to the has results. deliver This light holding perspective, to for flow others, heard front, this acquisition light. from teams We line top most outstanding have to come that. Similar From lenders provide it's look opportunities deals the On continue company financial years. agreements the to should some deal expiring. sales and hotels forward are But available few some interesting and been grow are to next time been take cash revenue over going forbearance money, our to management a

regional demand direct above that the adjusting strong in sales impressive gains and by The diverse index national, XXX, teams are driven still quickly local was RevPAR our index sales over outstanding well ensuring well to efforts, its as being RevPAR management sources concentrated revenue XXX. XXXX Our lodging of we're today's Island's already first efforts as from quarter environment.

lot in for bookings Portsmouth, like of and XXXX summer Maine; markets markets, Although our Portland, are the been window Savannah; short, booking has New we some will above Hampshire; in seeing Anaheim. of very ADR be a And those levels.

travel very, leisure summer expect We very to strong. be

travel Some can Will will extent return? is pundits, of at tell return and course, are traveler. you traveler return To of business that concerned business I what about the the the business they all? transient returning.

do announced to of Other and with to meeting plan. demand are back a business, returning bringing Uber of tech office such big reopening companies tech Facebook, return space. San track Google Houston. its Valley. has we starting Portsmouth. and return are We're Microsoft, functions to Silicon to intern it's we're going from lot some fast are led coming medical as doctors some whom giants the that's and seeing over that in with into be seeing are occurring projects our up, the office, medical by IT-related back will Shipbuilders hotels are centers, our believe and Labor move country. and business We seeing consultants travel once transient robust. Day, be of all small some and and markets, perspective, timing Valley. a we employees From Patients, past life, business in will we Diego Silicon

our get back, and have more the we than because we is business fair the all traveler will hotels. concentration of to going kind traveler extended-stay continues at most come recovery in value REITs revenue the continue and lodging As of business rooms XX% to share the of largest get our the does of

almost to thesis growth a believed Our with diversify upscale revenue, and extended-stay espoused we these hotels. hotels our X base provide customer during of decades for us weakness the flexibility periods maximize to or

the in has throughout our strong lackluster most Valley. market, been performance performance RevPAR significant Silicon relative pandemic despite Our

of business is $XX from quarter, Silicon seeing good only For are on $XXX of occupancy tech ADR production XX%. the big Valley out The companies there. and news the RevPAR we traveler was some of

kind to when our little double see top and with this in companies traveler other with highest together to business the to along we're the are our ago. with be locations, from the the months Day, return a in office, of Inn post inbound was to $XXX, just fourth South with you to to stronger have will Lauderdale Valley, from Florida almost Among starting and Fort office of the combine and travel posted down markets its the RevPAR markets, bullish other those hotels that alternative pandemic. just year tech giving fire, bit demand central last but X quarter previously, we opportunity top employees who the of As RevPAR that travel even I our than stated workers Residence Silicon are reopening, remains corporate headquarters, with especially it on Labor come pre work frequently will our back RevPAR

up of an up XXXX was a was over ADR ADRs that our as weekend weekend, peak digits matter fact, from As Lauderdale looking popped the our having and ADR. RevPAR I for and double past

in expect We phenomenon a leisure to see that little I've of and the of bit that some hotels mentioned summer kind markets earlier. this the

continue ADRs, Our bogey get be an in From will on every setting I standpoint, XXXX our expense. expense focused rates operating there. and be and hyper to we revenue to we'll believe management exceed

hotel and team its a of every time side, analysts help of their with each hotel XXX% that day-to-day investing expenses. the Island we to On GM are touch in have micromanage

to platform the million produced our more the of again, we is XX% a On that first quarter sequential release, GOP proof of revenue our in cash highlighted million. Dennis increase in hotel with $X.X drove flow-through improvement from this great fourth incredible results. on revenue, quarter. an increase is producing our we As $X.X Yet Island in

need to to As continue trends produce the will improve bottom be focus line. maintained this flow-through in to strong XXXX, to

in and X producers York. Residence hotels, our you and of Rochelle, Inns: at the of San Fort California; XX Anaheim; the quarter, If first Mountain GOP look were top New our XX New Gaslamp, Diego; positive generated View, Lauderdale; XX GOP all

Our up liquidity from is year-end.

positive. are cash flow We

balance and past value actions the value our flexibility while year providing Our is road. add strong, protected down shareholder over to sheet the

ability platform to believe type I'd attributes, diverse to base able most over allows, we'll portfolio to our appeal hotel to to of room type we With Dennis. turn with our it Island, sooner the return than levels peers. that, our customer be and our that to XXXX our Given like industry-leading

Dennis Craven

primarily night to compared Thanks, due in Friday, XX% Jeff. first and RevPAR hotels to the All RevPAR revenue differentiation of which the quarter, Saturday $XX beginning again, the had some pandemic. quarter. XX% the fill to up of opened XX%. XX% was weekday to our XX% facts. our the XX occupancy of is continue weekends, our of over RevPAR weekday on the was almost the Weekends occupancy additional with XX in our carry I hotels In since up want occupancy, $XX, which have been day. over

XX%. with Residence occupancies and brands Our Homewood the of at at most highest XX% Hampton Suites significant had Inn XX%,

many well. are portfolio drivers. back in Rochelle of $XXX, New City XX% Our our occupancy unrecognized XXXX hotels and ADR White traveler of our a until able suburban that had of only comes that XX% is again, challenges over the is the in in New international New for the quarter. demand York our Despite assets location to performing already down urban going come full, average benefit Plains assets diverse And to are years York and face from the first to in the pretty goes that differentiation quarter of often

Again, over over XX again, occupancy ADR Our demand. an the of our of business, an gains saw San quarter. first hotels Two saw XX increase, XX% diversity occupancy of Diego Gaslamp Residence convention Inn, ADR $XXX. despite no XXXX had at, hotels and

incredible absolute our these to also Lauderdale; over New Inn in Rey; you've might White to I Garden Residence Springfield; and Plains, Gaslamp; Our York. ADR California representation San D.C. Marina our X Hilton Residence to markets Inn add from Fort Residence And Inn ADRs there All our our had Florida. Suites Inn Embassy York got with $XXX. top Diego hotels an New were our del areas

Homewood were Connecticut; XX%; X our markets and our in the of which Anaheim; occupancy absolute Medical had Residence top the Lauderdale, Residence Hampton Fort Inn quarter Mountain Suites occupancy the Farmington, Inn Center. in Inn California, View, our Houston Inn Residence Suites Our

for are Valley occupancy markets. another of is we've these Silicon the and look Again, treatments. a just to indicator first at markets pop lodging time Florida Hampton the procedures coming hotel All the Connecticut these Houston Texas. This to resume leisure as XX%, from and over Inn doctors, with in, are not California the positive starting patients, rankings, certainly pandemic since consultants of into had diversity to hotels and to seen the top

see to average longer Inn of than continue Residence stay our We and an our to for brands. respect much Homewood levels Suites especially with portfolio length historical

X.X fourth first XXXX quarter nights the Residence first and quarter compared almost of our nights double. in quarter, hotels, nights the X.X in the was length X.X average XXXX Our stay Inn in to

of stay the first the X.X nights length XXXX average our in XXXX the For our was nights quarter Homewood to X.X in hotels, and Suites fourth first quarter compared in nights X.X quarter.

shoots corporate our the to of at the and segment decline other remarks. on last year-over-year prepared XX% of Looking XX% Compared Jeff which basis quarter, those transient a production. was of in that a our revenue versus to off fourth our of was year, in quarter some reflective XX% and travel best his travel types corporate performing segmentation and in green referred in third

Our off our to and off XX% XX% and is the government fourth versus XX% production retail third XX% XX% is previously. quarters, versus in business

Homewood saw revenue of as Suites scored we business. government, our negotiated nursing front, some booking we prison books a good primarily the segments boost corporate staffing local negotiated pretty markets, wins a of in good in handful and On

Let's best-in-class model positive operating a hotel profits that pumps about and out minute operating our talk for EBITDA.

EBITDA month the hotel and we the time the positive pandemic, generated For during quarter. each GOP since first

which within pennies the quarter, XX% XX% proving that fourth margins Hospitality on of analyzing in with $XX, communicating operating operating on of the recovers much possible very concern. of as costs as with levels margins over hotels general XX% margins day leverage has their margins XX% the team and a basis, jump time us on in our It's were profits. much RevPAR $XX, expenses. as control operating Our increase avoid Throughout meaningfully, dedicates March. January, strong. in and real-time dedicated February at operating improved is that going a kind on of staffing data obviously, every XX% Island focus our creep lodging quarter and control and of is operations to Labor team is portfolio XX% It's bit is our of as RevPAR margin that which can. our necessary first be we a quarter again, our managers all resources and important managing as for as expense of to a to

costs our and at quarter approximately our hotels, it and comparable think find many has our XX% it to been have down expense, compared of XXXX. occupied were fourth which employment. basis per steady a our about, room biggest a first XXXX I approximately challenge to and benefit peers On be our as $XX, of approximately seems XX talked payroll to is quarter and XX% from down is

sooner than The as unemployment, employees, which said, hourly amount making rather was strong year-end certainly, given approximately the believe Our employees and retain pandemic. employee I count end our end more at money is despite and the of relatively collecting and compares the holding trends. employment as benefit challenging XXX, environment, growth to XXX approximately X,XXX are our team, RevPAR later. by current employment and growth the job of before we fantastic A quarter to people must hotel-level of steady that becoming hire

to creative hire be the signing performance have have In stay our incentives bonuses bonuses, down retain our beverage to year-over-year. to be respect costs able bonuses XX% with come as very food talent. and complementary such first and We and quarter, to

the if you $X.XX versus cost last $XXX,XXX And our breakfast a over in at look quarter, room it is from $X.XX year. $XXX,XXX on now is last comp spend which first basis, room, breakfast year. Our even CPR occupied was per per down

basically Our the are evening with quarter. hospitality than costs $XXX in X less

our health line. forward, As will safety those be as and and bottom that we customer change beverage desires should we protocols, benefit believe and move changing offerings food complementary do and

visions look closely our and should brand sharing working what and Marriott believe at are that our Hilton, our We with for experiences we leaders like.

Another We Texas in costs our the in year lock this point to to and saw that horrific not our markets were get in despite made did Texas, many freeze property shortages. quick had increases energy is data utility down owners year-over-year due where major thus the prices decision prior to jammed.

approximately quarter, our budget $X.X Warner in fourth we looking spent to according about On Center $X development. million much full first very and quarter. for the in opening approximately invested the continues go year that forward the we million and CapEx front, the plan, with Center development our hotel million, to we're Warner The to $X in

Before put is corporate March, we responsibility XXXX. turn to initiatives our In I in place over which do on corporate a I want to inaugural ESG highlight for responsibility of and it out we've really Jeremy, early initiatives. something, report lot rolled

have matters, efforts been committed ESG to marks memorialized of We but renewed this always sustainability. our first and reporting to historical our both approach our

of strive scores, to social, substantial areas, ratings result from a industry, X. which improve next direct X forward of We to which including rating; release investors With the initiatives I'll report, improved the improved with all a been that, ISS, over Shareholder our As which XX it December who year. including us issues about to Institutional others a XX% turn from of Services, and in our X a to of in from have a the improved gave Jeremy. a over approximately rating efforts XX% X our environmental governance, to rating; by DEI from and ESG a on focus going improved particular rating a X XX% our recognized

Jeremy Wegner

for with our Thanks, low generally of absolute QX portfolio represents QX a versus in Dennis. we QX. is our by a XX% of XX% QX RevPAR XXXX versus quarter are increase Chatham's very Good morning, RevPAR levels $XX. RevPAR QX seasonally $XX increase with the encouraged line everyone. so

and and a quarter, $XX to RevPAR $XX start the RevPAR was January QX $XX of April. in increased to March, with great in in in from February During $XX off

and to in a of QX at XXXX, represents XX% Our a $XX decline RevPAR decline RevPAR April XXXX. XXXX $XX XX.X% from April our QX our RevPAR represents

efforts which relative expect our GOP of RevPAR light reduced of we level continue generate remainder to hotel margin We absolute contain RevPAR throughout XX.X% to declines of in margin QX strong of for XXXX $XX the significant a of and XXXX. will quarter. to be costs, quite were our XX.X%, the Through able is EBITDA to

cash Our capital, $X.X amortization, represents the demonstrated minus and of less $X.X was cash before cash adjusted corporate less million. us million to interest QX G&A, and million, was principal burn hotel has get enabled And XXXX which hotel during million. $X.X has flow was significantly extended-stay EBITDA EBITDA unique with EBITDA our worst pandemic, the portfolio hotels focus remarkable Chatham's our pandemic resilience of of on than most through peers. $X.X the

be cash free $X.X quarterly is amortization. need approximately of through flow $XX when Our we CMBS April neutral to that say I we cash think corporate service. of includes flow RevPAR and XXXX what G&A million debt neutral, free principal And generally

at So quarter. million of paid per should balance level, down remain we approximately our unrestricted cash level we April's while believe RevPAR debt $X.X

In pandemic our and NOI of In $X.X $X.X addition and emerge a cap borrowings EBITDA of a of number on $XX represented that a under amount to EBITDA generated the $XX.X $X.X $XX.X the XX.X% million X.X% the our Residence gain to help XXXX hotels price with completed the million, Innkeepers The XXXX us March, the million, Inn we the pandemic, liquidity. of of for during million. rate we a reasonable actions November, which on million multiple Mission for credit of million XXx we completed facility. to interest million property In sale which of $XX.X on hotel's in sale $XX taken the that million. of will have JV the the sale and leverage outperformance mortgage of us Valley our allowed from a repay

in the made initial million JV over the investment since over of of life cash We have received distributions of million $XX we XXXX. investment $XXX Innkeepers our

forward. meaningfully Innkeepers reduce sale our Importantly, the leverage going will of

had liquidity XXXX. net amount cash enable more debt and our equity-linked with maturity we QX. will was we've scheduled flow, it issue believe programs before We XXXX, seriously, XXXX, limited liquidity. of felt million, our do. of avoid issued $XX.XX. cash very to of XXx believe to that made JV a this million Innkeepers and positive at was maturity believe larger prudent in $XX.X stock dilutive of to to had in availability. issuing Chatham and leverage reasonable the to $XX.X average QX other this purchase XXXX, at securities solid and debt amount used our like limited price million balance RevPAR will unrestricted to and In million equity which liquidity revolving take a pandemic liquidity, mature this seen to very even of levels million some us costly through to and decision the debt-to-EBITDA cash of XX, amounts $XX in of $XX.X exit $XXX with or increase our that debt issue debt order loan equity XXXX allow We the of facility steps companies our equity the share we reduce the March and Innkeepers was leverage we ATM consistent direct was end Our our between return of only an we repay in sense the have offset to At repay credit and with April. coupled are We taken of burn we

any continue very or more avoid to in to in have no shape our performance no is refinance XXXX. financings. before balance debt because longer since sheet We we are and need This locking doing until is we high-cost should pro us now $XXX debt forma now maturities to our recover provides time for million. is important we great it enable and burning dilutive So hotel other believe that, debt to approximately cash for liquidity

acquire cash should with solid to That provide attractive portion Our open flow the hotels positive line call. also liquidity the free us opportunities Operator, arise. the please questions. my for concludes and capacity of

Operator

[Operator Instructions].

line BMO the from Klein with Markets. comes question first Our Capital Aryeh of

Aryeh Klein

turn a of noted in And to play expecting portfolio? should there of lot How of positives to summer? that on the still the rest leisure that should programs ADR Valley internship play side things. -- Is front, higher occupancy low-rated rate of On business? are out the lot this we you still to expect in you the a the Silicon

Jeffrey Fisher

is you the without without up. the look in at about ADR. kind compared business and the -- and me going by systems to and just reports the or traveler higher that business to $XX still, even fourth of challenged Let at through of up Dennis? start ADRs, talk $XX with even Dennis, volume reservation We're the not the cases interns. side the equation you're the then, better can Look, I still, you of business also see to for quarter corporate segmentation picks coming doing some the travel. that when there talking think, various results until volume But about

Dennis Craven

Yes.

with program, I the in Valley, a lot previously. of think they where is especially at hotels the are Aryeh, which size this on have interns, programs summer, did we normally X the most -- tech full occurring intern those Silicon not are of that

was we in they're going us we of some companies do But some which bit going fall encouraged we internships. have us but We heard early our be in are certainly East D.C. -- it's and we we is business on intern different for a that do Springfield -- years. our to little think Coast, little hotels, -- prior, summer then of some not XXXX expect we business a it. looking than see prior of believing intern do hotels Tysons, that this up the bit additionally, -- are it significant But going and Seattle. even our still book kind And we business to the and are late and of have is intern summer, to in have certain for

Jeffrey Fisher

expected. how of to than see reopenings online what about in you or reopening to a perspective look And of had that New quite and announcements a even or announcements little about earlier of that course, you make bit read the of interesting is the office at in you'll of when political live in you're that's faster amount starting terms kind the you be most think vaccination people And macro from whatever want office states I anyway, just they see see a surprising newspaper acceleration more that in that of about different up, of City. think to and relaxation a the go front. York of the see as But an rate on we but from not that restrictions, state travel. I relaxation you statement, may

Aryeh Klein

And then ends pre-pandemic to occupancy thinking are on the levels just how at where about ramps? relative staffing And labor of your as kind you of side, it do you up hotels? think kind

Dennis Craven

Yes. Thankfully, the said and them often. about, aren't as my to is out hotels, of try a to stay I mean remarks. or challenge, what of cleaning of of again, of our the and we still our which it of prepared listen, talent. as I hotels high we're incentives it's extended-stay size I our one as -- given hire in mean kinds the the I quite one all talked retain benefits pre portfolio, compared pandemic, is length was is throwing

rooms though couple issue or our And for of sell that operations the a that's a major and labor an for quite rooms for with is our is was of a extended-stay challenge, drive had days thankfully so we But finding But little of lot think not a are hotels, in a even we night. instances in we I I So to a had over labor problem. a significant on there, again, of little a -- -- Only nights. it those get the a revenue that benefit honestly, a focus bit of turn longer. is in next bit staying guests fact us, us, of couple to hasn't turning team. what couple call been XX were the room important going be would that

Operator

question from line Riley. B. the Our Kyle next Menges of with comes

Kyle Menges

Hampshire Kyle specifically, was and more Maine coastal could I you're seeing heading you're in about more for if kind into summer maybe you New curious the heading little talk is June. kind momentum the on into seeing of bit This Bryan. of the and demand booking a

Dennis Craven

very Portsmouth, Hampshire. days, We've over strong our Portland Exeter Yes. in and XX uptick the for reservation especially room I mean New it's coastal significant in a last demand seen, hotels.

think that bullish I on we're looks very summer like. what

As closed travel last about inbound we July XX. to any year, those really was, markets I essentially were until, think talked it

very we those even even markets, basis, be and a on Jeff believe So talked XXXX. ADRs especially year-over-year markets higher, than And pushing we compared those should, if ADRs, have high, are 'XX, as strong. in to not that are that should about, pretty

So we're to very encouraged those strong. be We really for going markets. by think it's the pattern booking

Kyle Menges

into level you how is XXXX? now, kind versus Great. looking kind are little as then far of through concerned, mentioned normal as capital you allocation I as acquisitions. pipeline curious is head And was the weighing a of you're right at at we how know looking XXXX I more CapEx but slow acquisitions getting to a

Jeffrey Fisher

CapEx there, very over because of our money spent think we're we've conservative years, the shape are the and on good anyway. very, I side, Well, the hotels, in

come So by out going little CapEx in having to the months very pandemic shape. good XX up will of even on, we of

have XX what about expensive. years is really for allocated or soft that not hotels a some to just into cycle their good We X redo, X have extremely money cycle

arena, we some these on opportunities I -- deals really And to here to think long-standing little time some we'll acquisitions work CapEx presence and continue we'll So And fine. extended-stay down relationships, kind I bit the looking think fruition. that to make our continue in the But it's expand, come for will the we'll to side, our for be utilize more of and here. we've on dig others, as and going a to think are take, industry commented of kind road I of just particularly contacts just and something to we'll there.

Operator

from Capital with Our Batory Tyler Markets. the next line question comes of Janney

Tyler Batory

more zero on out to And expect there. it and seeing First improvement short-term you as about bit seasonality, portfolio. like color think, the well, do appreciate me, here? that sounds of been continued I is question you've the you the how into you're a have into but the playing the for little and broadly Can that of results some you And market May? all what much sequential in how May stronger I much April for wanted into visibility all you trends rest the commentary on seeing appreciate talk

Dennis Craven

portfolio. November for months and start seasonally certainly, then historically March, slower of October with mean, October, out lower months really for you And Tyler, I strongest in being come to portfolio, February of one our build Well, you always the and to are months. through it our

to think have from May expect perspective, be April. RevPAR over I to a continue -- May growth we it I do in think

think you're spring -- are of semesters weird to colleges Schools in break you the in of I through their month. that to May spring in not you're are least as get starting where early move starting finish out period and kind at of kind -- anymore. the

April, I July June, So you expect than to we really May be see expect and we to do to August, I once strong are think better get -- but think growth. you

think, I continue. So yes, to that we expect trend

Tyler Batory

share reopen as and the other on then or do that your to perhaps, it's Okay. impressive of Excellent. expect whatnot? good, to because hold start are that to forward, index, really as we to market quite there in look you out RevPAR think, some quite able of level out I properties think And terms I going and be

Dennis Craven

-- last of few index mean come closer certainly our back I quarters, to and the XXXX started to over seen it listen, XXX. has think we're RevPAR I you've

to -- but XX% to But strong our several think, on that like remains move do of customer to index our realistic, certainly, ability again, some our expecting I would XX% above over diversify forward. because, that the we we is gains we incremental think of we hope base. to even to as those it quarters, to stay believe hold I certainly not next

Tyler Batory

the to operate once service? question point we the levels. employees an property discussion, extended-stay Okay. versus last Just labor types just just or to labor of then back necessary is much normal there quantify there. get Great. on of a normalized occupancy more an investors of how the many across trying versus a extended-stay select top out how needs in service get Can for effectively And more -- sense finer to to you are in here hotel me, talk lot mind full variance for a terms this about put of certainly versus

Dennis Craven

of I which -- I which even start for as especially here little length we and bit I you I you first foreseeable a think the our think start think is of longer. with, stay future, today mean, sit is

of length going in a nights. where our every average least every extended-stay our cleaning that So therefore, else. of at And X on at is X kind most X hotel, half of room nights instead to likely to you're it's stay nights X something be of

a can we the half they rooms housekeeping put essentially, just with So to as perspective, turn labor, to think, simply. it manage on clean I just the

them. flipping cleaning concerns least owners other with the types different think people we're X that or going and at X some and are seeing have of who weekend that rooms problems of of the stay hotels hiring with to mitigates more the So stays to be problems I that right night are posed average

Jeffrey Fisher

that service So you're hotels. select comparing our and extended really start on least with upscale service, then in nail stay. about Comparing I Starting talking to the let's Dennis from at so bottom. hit the mean a select head. -- the housekeepers

X room depending on not pandemic. occupancy. coming there that number especially we'll room, the day out of got on and is reclean the the no But depending the stay-overs, of the recleaning You've with we're expectation and housekeepers

works So that well.

food food a move As you the just me chain talk -- beverage. and up and bit little let about

employees you've going probably the complementary a gone. hour or and of upscale, do got anyway to to in cocktail extended-stay stay hotels, to evening beverage sort evening hotel do dedicated On The is in hour gone select-service and breakfast X side, otherwise. only or and the food X the

before breakfast brands savings desk to we're there what compared And front helpful, the more the pandemic. the breakfast during hour. the combination between a what working kind and on, time, are happens of So and a service level there's is of limited

think be I ultimate ultimate so to be And arena. in labor actually, there's that -- going know I savings there'll

facilities employees our full-service it's different as full-service their today, they're you in and story know, quadruple way because hotel, have, to as want a hotels. a most then you're that are going food got the hotels unless we've closed occupancy back, Now if beverage to the comes keep

away, that of if and then and view. between closed, So an goes they and ultimate point a difference interesting the would -- them hotel keep a and really full-service a marketing select-service sales from be perspective

good pretty again, we feel, of we kind own. the about that hotels So

Operator

Our Powell next of Anthony line the question comes from Barclays. with

Anthony Powell

And -- Lauderdale England, 'XX just markets In New given like maybe expect talked you GOP I your to of and how get ADR Fort some do the much above guess, or levels, see where above, levels? you to expect saving you EBITDA, cost wholesale above at or EBITDA XXXX about? also

Dennis Craven

operating we've that producing. demand and that those I think in some it case, been assumes But than occupancy listen, We is very have challenges the to we moment, there's do mean with what GOP strong markets a is And be 'XX, I evidenced stronger. of really flow-through we -- efficient higher XXXX. it to think, so was that in the think by expect, expect ADRs that model which to at similar should our be. also as do Yes. Anthony, in with I

going So I think will strong. points the on at margin this out you operating be But this we're we should not a basis look when summer, think step operating XXX think I say, margins be basis, there same-store especially, pretty and stronger at point. to

Anthony Powell

target future, mean leisure, buying of upscale extended-stay buying it. know maybe -- as to a the or your the you change the more as broader sort Got in guess, look allocation forward And your -- Sun other changes next we to in markets I hotels Any look I cycle? or Any Belts? allocation just business. I more like you regional

Jeffrey Fisher

there's mentality talking -- pandemic. as think because heard be X is drive the Sun inclined You've pandemic, be only got the through careful herd it we and favorably We right? You've of on as buy the I lot to were obvious it, all. have sidelines, We to to heard markets." a frankly. money you leisure. buy got But to were "We we're come Belt. think about I more pre Look, That's

written it. you've about and -- So

particular the might unless So a lot an drive to that of those prices locations, up not of it's to special opportunity, a a sense. point kind make in

So been, in And look to with to years, let's I we want markets always we'll generators. fundamentally, be the diverse as going forward next be key. we X demand that. be have the think good, certainly, about to that's say, careful we as But

Operator

this there closing at further and like turn Ladies are would time, to questions. comments. to gentlemen, management I no the for floor back

Jeffrey Fisher

joining everybody appreciate I us Well, today.

our the our of well we've extended-stay about pandemic look and several for you'll summer, to We the strength model a the multiyear throughout forward lot an earnings Thank flow of us grow team. that that think our I the proves hotels operating one. hope that would and very looking for over our think the hotel's the and our next the August forward I high interesting years. flexibility future robust and assets to of call. earnings a and and join ability talked quality will I'm very performance to cash our much. a here, bodes recovery you be I of

Operator

Ladies concludes today's and gentlemen, this teleconference.

You your your for this at participation. time. lines may you Thank disconnect

Chatham Lodging Trust (CLDT) 4 May 212021 Q1 Earnings call transcript