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    Jonathan Jenkins • B. Riley Securities

    Jonathan Jenkins's questions to Chatham Lodging Trust (CLDT) leadership

    Jonathan Jenkins's questions to Chatham Lodging Trust (CLDT) leadership • Q1 2025

    Question

    Jonathan Jenkins asked about the portfolio's exposure to international inbound travel, the expected contribution of ADR versus occupancy to the full-year RevPAR guidance, and the company's target markets or asset types for potential acquisitions.

    Answer

    Executive Jeffrey Fisher stated that the company's exposure to international travel is 'pretty light,' primarily concentrated in Silicon Valley, and that being outside major gateway cities insulates them from significant impacts. Regarding guidance, Executive Dennis Craven indicated that with a flat RevPAR midpoint, he expects minimal movement in either ADR or occupancy. Fisher added that any ADR slippage would be isolated to specific hotels backfilling lost high-rate government business. For acquisitions, Fisher emphasized a strategic goal to diversify the portfolio into new markets to reduce reliance on tech-heavy regions and decrease cash flow volatility, provided they can acquire newer assets at accretive cap rates.

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    Jonathan Jenkins's questions to Chatham Lodging Trust (CLDT) leadership • Q4 2024

    Question

    Jonathan Jenkins sought clarification on the drivers of 2025 RevPAR growth, asking if it would be primarily led by occupancy. He also inquired about the company's capital recycling strategy, including whether there are more assets targeted for disposition and if the company plans to enter new markets or focus on existing ones for acquisitions.

    Answer

    Executive Jeremy Wegner clarified that the RevPAR growth forecast is balanced, with contributions split roughly half-and-half between occupancy and ADR. Executive Jeffrey Fisher stated that the acquisition strategy remains focused on business-travel and extended-stay hotels but that the company is open to exploring opportunities in new markets. Executive Dennis Craven confirmed that Chatham will continue its strategy of recycling older assets that require significant capital into newer, higher-growth investments.

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    Jonathan Jenkins's questions to Chatham Lodging Trust (CLDT) leadership • Q3 2024

    Question

    Jonathan Jenkins inquired about the drivers behind recent RevPAR strength, the company's target leverage, its capital recycling strategy through asset sales, and potential catalysts for accelerating acquisitions. He also asked for real-time commentary on the hotel transaction market, including pricing and volume.

    Answer

    Executive Jeffrey Fisher attributed the Q4 RevPAR pickup to a post-summer return of corporate business travel. Executive Dennis Craven stated that a comfortable leverage target would be in the 4.75x to 5.25x range, above the current 4.2x. Fisher emphasized a renewed focus on capital recycling, selling older assets to acquire newer hotels, reduce CapEx, and enhance growth. He also noted that while the transaction market hasn't seen dramatic shifts, broker activity is increasing as sellers look to test the market.

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    Jonathan Jenkins's questions to RLJ Lodging Trust (RLJ) leadership

    Jonathan Jenkins's questions to RLJ Lodging Trust (RLJ) leadership • Q4 2024

    Question

    Jonathan Jenkins questioned if the strong performance of hotel conversions might prompt an acceleration of the current two-per-year cadence and asked for an outlook on the 2025 transaction market.

    Answer

    EVP and CFO Sean Mahoney responded that the two-per-year conversion cadence is optimal for managing CapEx and contract optionality. President and CEO Leslie D. Hale described the transaction market as choppy with a wide bid-ask spread, expressing cautious optimism for improvement in the second half of the year as market volatility potentially subsides.

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    Jonathan Jenkins's questions to RLJ Lodging Trust (RLJ) leadership • Q3 2024

    Question

    Jonathan Jenkins asked if the post-Labor Day corporate demand was a sharp inflection or a steady improvement, questioned the drivers for the implied softer Q4 outlook, and inquired about the current transaction pipeline and bid-ask spreads.

    Answer

    President and CEO Leslie D. Hale characterized the business transient demand improvement as steady, not a step change. Regarding Q4 guidance, she explained that Q3 was stronger and Q4 softer due to hurricane impacts in October and election-related softness in November. She noted the transaction market remains constrained and choppy with a wide bid-ask spread, expecting potential improvement in the back half of 2025.

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