Chatham Lodging Q2 RevPAR dips less than 1%, net income falls

Overview

• Chatham Lodging Q2 RevPAR dips less than 1% yr/yr to $155

• Net income for Q2 declines to $3 mln from $5 mln yr/yr

• Adjusted EBITDA falls $2 mln due to impact from sold hotels

Outlook

• Company projects Q3 RevPAR growth between -1.5% and 0.5%

• Chatham expects Q3 total hotel revenue of $78.8M to $80.3M

• Company forecasts Q3 net income of $0.0M to $2.0M

• Chatham anticipates Q4 RevPAR growth between -1% and +1%

Result Drivers

• SILICON VALLEY GROWTH - RevPAR for Silicon Valley hotels rose 3% due to strong technology-related demand

• ASSET SALES IMPACT - Adjusted EBITDA declined due to impact from hotels sold, accounting for over $2 mln

• SAN DIEGO REBOUND - San Diego RevPAR increased 5% benefiting from higher demand for convention business

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for Chatham Lodging Trust is $9.00, about 25.4% above its August 5 closing price of $6.71

Press Release: ID:nBwx2GLca