Chatham Lodging Trust (NYSE:CLDT) Q2 2020 Earnings Conference Call - Final Transcript
Aug 05, 2020 • 10:00 am ET
Greetings, and welcome to the Chatham Lodging Trust Second Quarter 2020 Financial Results Conference Call. [Operator Instructions]
It is now my pleasure to introduce your host, Chris Daly, President of Daly Gray Inc. Please go ahead.
Thanks, Sachi. Good morning, everyone, and welcome to the Chatham Lodging Trust's Second Quarter 2020 Results Conference Call. Please note that many of our comments today are considered forward-looking statements as defined by federal securities laws. These statements are subject to risks and uncertainties, both known and unknown, as described in our most recent Form 10-K and other SEC filings. All information in this call is as of August 5, 2020, unless otherwise noted. And the company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.
You can find copies of our SEC filings and earnings release, which contain reconciliations to non-GAAP financial measures referenced on this call on our website at chathamlodgingtrust.com. Now to provide you with some insights into Chatham's 2020 second quarter results, allow me to introduce Jeff Fisher, Chairman, President and Chief Executive Officer; Dennis Craven, Executive Vice President and Chief Operating Officer; and Jeremy Wegner, Senior Vice President. Jeff?
Jeffrey H. Fisher
Thanks, Chris. Good morning, everyone. First and foremost, thank you for your interest in Chatham, and we sincerely appreciate your participation during these unusual times. The COVID-19 pandemic has been one of the most destructive events to the global and national economy in history, and its impact on the lodging industry is unprecedented, forcing hotel owners and operators to manage our businesses under the most dire circumstances. This unprecedented period has required intense asset management and operating focus, and I am very proud of the efforts of our teams, both the Chatham and Island Hospitality, allowing us to generate some of the best operating results of all public lodging REITs. We have lauded our best-in-class operating platform since our IPO. And during these turbulent times, the benefits of that platform stand out as the ideal operating model, allowing us to work closely together to deliver leading results.
For the quarter, our RevPAR declined 77% to $33. Although a dismal absolute RevPAR, the decline of 77% for our entire portfolio, not just some small subset of open hotels, is much better than most companies who have already reported RevPAR declines over 90%. I certainly believe that our outperformance is attributable to the fact that 70% of our 2019 EBITDA and 60% of our rooms are made up of extended-stay hotels. An important differentiator is that Chatham has the highest percentage of extended-stay rooms of all lodging REITs, basically double the next highest REIT, and this is often overlooked. Additionally, more than 96% of Chatham's rooms are characterized as limited-service rooms, the highest percentage among public lodging REITs. Our upscale extended-stay hotels as well as our select and limited-service hotels, provide us the flexibility during periods of growth or weakness to diversify our customer base, to maximize revenue, and that's exactly