Chatham Lodging Trust (reit) · NYSE:CLDT
Chatham Lodging Trust (reit) — Q1 2025 Earnings Presentation
25 slides from Chatham Lodging Trust (reit)'s earnings presentation, May 6, 2025
Slide 1: Investor Presentation
Investor Presentation June 2025
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 Operating performance continuing to improve FY ‘24 RevPAR up 2.8% versus industry growth of 1.8% and Q1 ’25 RevPAR up 3.8% versus industry growth of 2.2% Chatham’s RevPAR growth has exceeded industry for three consecutive years RevPAR for Chatham’s tech driven hotels up 1
Slide 4: Travel Is Continuing to Grow
Travel Is Continuing to Grow Air travel has surpassed 2019 levels even though there is room for improvement in key segments (business / international) TSA Checkpoint Traveler Numbers (7-Day Moving Average) 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 1/1 1/8 1/15 1/22 1/29 2/5 2/12 2/
Slide 5: Operating Performance Is Improving
Operating Performance Is Improving RevPAR has continued to improve as business travel continues to recover while most markets maintain positive fundamentals Occ - Prior Yr Occ ADR - Prior Yr ADR RevPAR $198 $199 $197 90% $191 $200 $189 $198 $189 $197 $197 $185 $185 $194 $187 $189 $178 $189 80% $184
Slide 6: Operating Performance Is Improving
Operating Performance Is Improving RevPAR performance is now above 2019 levels for Chatham’s entire portfolio Recovery in our tech focused hotels has taken longer, but those markets are currently seeing strong year over year growth RevPAR versus 2019 15.3% 14.7% 12.2% 12.7% 12.7% 11.1% 11.7% 9.9%
Slide 7: Chatham Is Outperforming Peers
Chatham Is Outperforming Peers Chatham’s RevPAR performance has been among the best of all lodging REITs RevPAR Growth – FY 2024 2.9% 2.8% 2.6% 2.0% 1.8% 1.6% 1.6% 1.4% 0.9% 0.7% -0.1% -0.3% -2.4% PK CLDT DRH RLJ INN PEB XHR APLE HST AHT SVC BHR SHO RevPAR Growth – Q1 2025 7.0% 6.3% 4.2% 3.8% 3.2% 2
Slide 8: Superior EBITDA Margins
Superior EBITDA Margins Chatham’s intense focus on cost control and superior portfolio of extended stay and upscale limited-service hotels in markets with high RevPAR generate superior EBITDA margins EBITDA Margin – FY 2024 35.7% 35.6% 35.2% 34.3% 29.2% 29.1% 28.2% 27.5% 27.2% 26.4% 25.4% 25.3% 24.7
Slide 9: Significant Upside From Recovery in Business Travel
Significant Upside From Recovery in Business Travel CLDT has significant upside at its largest hotels where demand is driven by business travel Chatham’s five Residence Inns located in Silicon Valley and Bellevue generated $21.0 million of EBITDA for the LTM ended 3/31/25 versus $35.0 million in 2
Slide 10: CLDT's Tech Focused Hotels Delivering Strong Growth
CLDT’s Tech Focused Hotels Delivering Strong Growth Chatham’s Silicon Valley and Bellevue properties are generating strong RevPAR growth Chatham SV / Bellevue RevPAR % Change vs Prior Year 31.4% 24.9% 13.9% 12.3% 10.5% 10.1% 11.0% 10.9% 11.6% 11.2% 8.1% 6.7% 6.0% 6.5% 5.1% 4.4% 4.4% -1.5% -1.2% -3.3
Slide 11: Tech Driven Employment Is Strong
Tech Driven Employment Is Strong Technology industry employment has grown significantly from 2019 levels As employers increasingly enforce return to office policies, there is the potential for significant business transient travel growth Number of Employees 250,000 200,000 150,000 100,000 50,000 0
Slide 12: Significant Upside From Recovery in Business Travel
Significant Upside From Recovery in Business Travel Pro Forma EBITDA Assuming Recovery of Silicon Valley and Bellevue to 2019 EBITDA ($ in 1,000s) $929 $14,006 $11,999 $6,505 $111,026 $118,527 $119,456 $104,521 $104,521 $107,457 LTM 3/31/25 PF Impact of Incremental Pro Forma LTM 3/31/25 LTM 3/31/25
Slide 13: Capitalization / Enterprise Value
Capitalization / Enterprise Value Common Shares 48,984 Vested Units 2,225 Total Shares and Units 51,209 Stock Price at 5/30/25 $7.13 Equity Market Capitalization $365,121 Revolving Credit Facility $75,000 Term Loan 140,000 CMBS 143,225 Total Debt @ 4/30/25 $358,225 Preferred Equity $120,000 Less Unr
Slide 14: Successful Capital Recycling
Successful Capital Recycling Dispositions Additions Hilton Garden Inn Burlington Homewood Bloomington Home2 Warner Center Courtyard Houston West U Homewood Maitland Residence Inn Austin Domain Residence Inn Houston West U Homewood Brentwood TownePlace Suites Austin Domain Homewood Dallas Market Cent
Slide 15: Home2 Phoenix Downtown Acquisition
Home2 Phoenix Downtown Acquisition Chatham acquired the newly constructed 148-room Home2 Suites Phoenix Downtown on 5/30/24 Price of $43.3 million represents $293k per room Expected stabilized cap rate of approximately 9% Outstanding location in attractive downtown Phoenix market Closest h
Slide 16: Solid Liquidity and Limited Debt Maturities
Solid Liquidity and Limited Debt Maturities Chatham had $192 million of liquidity at 4/30/25 Chatham Debt Maturities at 4/30/25 ($ in millions) $185 $75 $140 $58 $25 $23 $37 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Mortgage Term Loan Revolver (Undrawn) Maturities include all extension optio
Slide 17: Significant Debt Reduction
Significant Debt Reduction Chatham reduced its net debt by $425 million since 3/31/20 Chatham has a strong balance sheet that positions the company for future growth % Change in Net Debt (3/31/20 to 3/31/25) 83% 76% 31% 12% 13% 14% 7% 7% 4% -40% -48% -55% CLDT PK AHT PEB DRH XHR BHR APLE INN RLJ H
Slide 18: Chatham Has Reasonable Leverage
Chatham Has Reasonable Leverage Chatham has reasonable leverage which provides capacity to pursue future growth opportunities Net Debt / Enterprise Value 1% 9% 12% 29% 29% 36% 33% 44% 28% 49% 57% 64% 63% 70% 16% 10% 18% 14% 4% 87% 10% 64% 62% 57% 55% 53% 51% 39% 42% 36% 30% 27% HST APLE SHO DRH XHR
Slide 19: Portfolio Overview
Portfolio Overview
Slide 20: High Quality Hotels in Attractive Markets
High Quality Hotels in Attractive Markets 20
Slide 21: High Quality Hotels in Attractive Markets
High Quality Hotels in Attractive Markets 21
Slide 22: 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 Significant upside as key markets (Silicon Valley / Bellevue) recover Chatham Markets (% of LTM 3/31/25 Hotel EBITDA) Chatham Markets (% of 2019 Hotel EBITDA) Other Silico
Slide 23: 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 65% of Chatham’s LTM EBITDA was generated by extended stay hotels Chatham Brands (% of LTM 3/31/25 Hotel EBITDA) Chatham Brands (% of 2019 Hotel EBITDA) Other Other 9% Hya
Slide 24: Pure Play Limited-Service Portfolio with High RevPAR
Pure Play Limited-Service Portfolio with High RevPAR Chatham has the highest RevPAR of the three lodging REITs that are focused almost entirely on the limited-service segment and the most upside as business recovers High quality assets in top markets Limited-Service Rooms as % of Total RevPAR 95.3
Slide 25: Most Extended Stay Rooms of All Lodging REITs
Most Extended Stay Rooms of All Lodging REITs Chatham has a unique portfolio with a significantly larger concentration of extended stay rooms than other lodging REITs Extended stay room product performs well in all lodging environments and dramatically outperformed during the pandemic Extended s
Chatham Lodging Trust — Q1 2025 Earnings Presentation on 6ix