Chesapeake Lodging Trust (NYSE:CHSP) Q1 2018 Earnings Conference Call - Final Transcript
May 01, 2018 • 11:00 am ET
Good morning. My name is Catelyn, and I will be your conference operator today. At this time, I would like to welcome everyone to the Chesapeake Lodging Trust First Quarter 2018 Earnings Conference Call. All lines have placed on mute to prevent any background noise. After the speakers remarks there will be a question-and-answer session (Operator Instructions) Douglas Vicari, you may begin your conference.
Okay. Thank you, Catelyn. Good morning, and welcome to our first quarter 2018 earnings call. This is Doug Vicari, Executive Vice President and CFO of Chesapeake. Also on the call this afternoon are Jim Francis, our President and CEO; and Graham Wootten, our Chief Accounting Officer.
As is our custom, I'll begin with a brief overview of our quarter, including a review of our consolidated results, our summary hotel operating performance, our financial position, and an update on our near-term outlook. After I conclude my commentary, Jim will provide a greater detail on the performance of our hotel portfolio. He'll also provide some general thoughts on macro industry trends and more specifics regarding the outlook for our hotel performance.
As a reminder, any statements we make this morning about future results and performance or plans and objectives are all forward looking. Actual results may vary as a result of factors, risks, and uncertainties over which we have no control. With that housekeeping behind us, let me now begin with a brief review of our highlights and consolidated results for the quarter. So we reported total revenue of $135 million and net income available to common shareholders of $6.5 million or $0.11 per diluted share. Our adjusted corporate EBITDA was $32.3 million, and while our adjusted funds from operation was $25.7 million, and that resulted in $0.43 per diluted share.
Let me now move on quickly to our key hotel operating statistics. Our portfolio of 21 hotels produced a RevPAR of $172.55 that represents an increase of 3.5% versus the prior year. Our occupancy for the period was a very strong 81% that increased by 440 basis points versus last year. Our average daily rate was $213.07, that was a decline of 2.1% versus the prior year. These top line trends resulted in adjusted hotel EBITDA of $37.7 million and our adjusted hotel EBITDA margin was 27.9% that represents a 90% -- a 90-basis point improvement versus the prior year.
Jim will provide more information and commentary on our individual markets in a few moments. But, it is instructive to break our portfolio down into a couple of different subsets to provide more insight. If we focus on the 18 hotels that were not impacted by significant guestroom renovations last year, these hotels produced a RevPAR of $176.77 for the first quarter and that represents an increase of 2.5% versus the prior year and that also exceeded our expectations for the quarter.
Overall, our operating results for the quarter came in above our guidance range of 1% to 3%. We are very pleased with the results for the