Chatham Lodging Trust (reit) · NYSE:CLDT
Chatham Lodging Trust (reit) — Investor Presentation (September 2020)
17 slides from Chatham Lodging Trust (reit)'s investor presentation, Sep 2, 2020
Slide 1: Investor Presentation September 2020
Exhibit 99.1 Investor Presentation September 2020
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure We make forward-looking statements in this presentation that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, cash flow
Slide 3: Business Highlights
Business Highlights . Highest Q2 2020 RevPAR of any lodging REIT . Highest margins of any lodging REIT Profit / cash flow at lower revenue levels than peers . Largest portfolio concentration of extended stay rooms of any lodging REIT Extended stay rooms especially attractive to current lodging d
Slide 4: Chatham Operating Statistics
Chatham Operating Statistics Chatham’s daily room revenue over the last week has been ~$385k and occupancy is currently ~57% . Steady improvements in performance since the end of March Daily Room Revenue ($) Daily Occupancy % 1,000,000 90% 900,000 80% 800,000 70% 700,000 60% 600,000 50% 500,000 40%
Slide 5: Chatham RevPAR Index Outperformance
Chatham RevPAR Index Outperformance Chatham’s RevPAR index has increased dramatically in the current challenging market environment . Index outperformance reflects both ability of Island Hospitality sales team to successfully identify and book unique sources of demand and the appeal of extended stay
Slide 6: STR Industry Performance – July 2020
STR Industry Performance – July 2020 Limited service hotels are outperforming in the current market environment US Lodging Industry RevPAR by Chain Scale (July 2020) Chatham Focus 0.0% -20.0% -23.7% -40.0% -34.4% -46.3% -60.0% -59.1% -80.0% -74.8% -74.2% -100.0% Luxury Upper Upscale Upscale Upper Mi
Slide 7: Superior Margins
Superior Margins Chatham’s superior EBITDA margins and ability to control costs provide it with a significant advantage in the current environment . Chatham will achieve profit / cash flow breakeven at lower revenue levels than peers Hotel EBITDA Margin (Year Ended 12/31/19) 45.0% 40.0% 38.3% 37.6%
Slide 8: High Quality Hotels in High Quality Markets
High Quality Hotels in High Quality Markets Chatham’s superior portfolio is reflected by its top brands and attractive markets . 68% of Chatham’s EBITDA is generated by extended stay hotels which are significantly outperforming in the current market environment Chatham Brands (% of LTM Hotel EBITDA)
Slide 9: Most Extended Stay Rooms of All Lodging REITs
Most Extended Stay Rooms of All Lodging REITs Chatham’s portfolio has a significantly larger concentration of extended stay rooms than other lodging REITs . Extended stay room product is very attractive to current sources of lodging demand Extended Stay Rooms as % of Total 70.0% 59.4% 60.0% 50.0% 40
Slide 10: Q2 2020 RevPAR Performance
Q2 2020 RevPAR Performance Chatham generated the highest RevPAR of any public lodging REIT in Q2 $ RevPAR – Q2 2020 $33.17 $28.44 $26.75 $23.33 $23.20 $14.31 $13.56 $8.92 $7.85 $7.18 $3.99 $3.06 RevPAR % Change – Q2 2020 -75% -77% -83% -87% -91% -92% -93% -95% -96% -96% -98% -98% 10
Slide 11: Q2 2020 Hotel EBITDA Performance
Q2 2020 Hotel EBITDA Performance Chatham generated the second highest Hotel EBITDA per room of any lodging REIT in Q2 Hotel EBITDA per Room ($) – Q2 2020 25 (370) (887) (1,655) (1,893) (3,009) (3,054) (3,428) (3,733) (3,753) (4,410) (4,717) Hotel EBITDA % Change – Q2 2020 -99% -106% -116% -123% -128
Slide 12: Operating Performance Has Improved Significantly
Operating Performance Has Improved Significantly Steady RevPAR improvements have led to positive hotel EBITDA and have significantly reduced cash burn RevPAR ($) Hotel EBITDA / Free Cash Flow ($ in mm) $61 0.8 $52 $45 (0.8) (2.3) $31 (2.8) $24 (4.2) (5.8) April May June April May June July August Ho
Slide 13: Solid Liquidity Position and Limited Cash Burn
Solid Liquidity Position and Limited Cash Burn Chatham had $114 million of liquidity at 6/30/20 which would cover cash needs for 41 months even if performance does not increase from June levels . Chatham has six unencumbered hotels with a book value of $276 million that could serve as collateral to
Slide 14: Chatham Debt Maturity Profile
Chatham Debt Maturity Profile Chatham has limited near term debt maturities and a significant amount of time for operations to recover before debt needs to be refinanced Chatham Debt Maturity Profile ($ in 1,000s) $500,000 $400,000 $77,000 $300,000 $173,000 $200,000 $316,597 $100,000 $145,432 $12,79
Slide 15: High Quality Hotels in Attractive Markets
High Quality Hotels in Attractive Markets 15
Slide 16: High Quality Hotels in Attractive Markets
High Quality Hotels in Attractive Markets 16
Slide 17: Recently Renovated Rooms
Recently Renovated Rooms 17
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