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Chatham Lodging Trust Announces Fourth Quarter 2020 Results


All Chatham hotels have remained open throughout the pandemic. For the 39 comparable hotels owned as of December 31, 2020, RevPAR declined 60 percent to $47, compared to the 2019 fourth quarter. Average daily rate (ADR) decreased 34 percent to $104, and occupancy dropped 40 percent to 45 percent.



hatham Lodging Trust (NYSE: CLDT), a lodging real estate investment trust (REIT) that invests in upscale, extended-stay hotels and premium-branded, select-service hotels, today announced results for the fourth quarter and year ended December 31, 2020.

Fourth Quarter 2020 Operating Results

  • Portfolio Revenue Per Available Room (RevPAR) – All Chatham hotels have remained open throughout the pandemic. For the 39 comparable hotels owned as of December 31, 2020, RevPAR declined 60 percent to $47, compared to the 2019 fourth quarter. Average daily rate (ADR) decreased 34 percent to $104, and occupancy dropped 40 percent to 45 percent.
  • Net Loss Worsened $1.0 million to a loss of $(3.4) million for the 2020 fourth quarter, compared to the 2019 fourth quarter. Net loss per diluted share was $(0.07) versus net loss per diluted share of $(0.05) for the same period last year. During the quarter, Chatham recognized a gain of $21.1 million on the sale of the Residence Inn San Diego Mission Valley.
  • GOP Margin Generated positive GOP margins of 25 percent during the 2020 fourth quarter, compared to 42 percent in the 2019 fourth quarter.
  • Adjusted EBITDA – Produced positive Adjusted EBITDA for the second consecutive quarter, generating Adjusted EBITDA of $0.2 million, versus $25.9 million in the 2019 fourth quarter.
  • Adjusted FFO – Declined $24.0 million to $(8.7) million. Adjusted FFO per diluted share was $(0.18), compared to $0.32 in the 2019 fourth quarter.
  • Cash Burn Before Capital Expenditures Fourth quarter 2020 cash burn was $9.5 million versus $5.1 million in the third quarter and $12.8 million in the second quarter. Cash burn includes $2.3 million of principal amortization per quarter.

The following chart summarizes the consolidated financial results for the three and twelve months ended December 31, 2020 and 2019 based on all properties owned during those periods ($ in millions, except margin percentages and per share data):

 

Three Months Ended

 

Twelve Months Ended

 

December 31,

 

December 31,

 

2020

 

2019

 

2020

 

2019

Net income (loss)

$(3.4)

 

$(2.4)

 

$(77.0)

 

$18.9

Diluted net income (loss) per common share

$(0.07)

 

$(0.05)

 

$(1.62)

 

$0.39

GOP Margin

24.9%

 

42.1%

 

32.2%

 

46.0%

Hotel EBITDA Margin

7.9%

 

33.9%

 

15.9%

 

38.3%

Adjusted EBITDA

$0.2

 

$25.9

 

$18.5

 

$131.0

AFFO

$(8.7)

 

$15.3

 

$(19.0)

 

$87.8

AFFO per diluted share

$(0.18)

 

$0.32

 

$(0.40)

 

$1.85

Dividends per share

$0.00

 

$0.33

 

$0.22

 

$1.32

The below chart summarizes key hotel financial statistics for the 39 comparable operating hotels owned as of December 31, 2020 (does not include hotels sold in 2019 and 2020):

 

Three Months Ended

 

Twelve Months Ended

 

December 31,

 

December 31,

 

2020

 

2019

 

2020

 

2019

RevPAR

$47.3

 

$119.4

 

$57.7

 

$132.6

ADR

$104.2

 

$157.6

 

$119.9

 

$166.2

Occupancy

45.4%

 

75.8%

 

48.2%

 

79.8%

GOP Margin

25.4%

 

42.1%

 

31.7%

 

46.0%

Hotel EBITDA Margin

8.4%

 

34.0%

 

15.2%

 

38.4%

Fourth quarter 2020 RevPAR performance for Chatham’s six largest markets are presented below:

 

Q4 2020 RevPAR

 

% Change vs. Q4 2019

 

Q3 2020 RevPAR

 

Q2 2020 RevPAR

Silicon Valley

$46

 

(71)%

 

$54

 

$38

San Diego

$74

 

(43)%

 

$88

 

$52

Washington D.C.

$39

 

(71)%

 

$51

 

$33

Coastal Maine and New Hampshire

$63

 

(53)%

 

$109

 

$25

Houston

$35

 

(58)%

 

$35

 

$18

Los Angeles

$79

 

(47)%

 

$89

 

$44

 

 

 

 

 

 

 

 

“Obviously, 2020 was the most challenging lodging environment in history,” commented Jeffrey H. Fisher, Chatham’s president and chief executive officer. “From owners and operators having to make very difficult decisions with respect to employees and how we serve our guests to significantly reducing or eliminating dividends to stress testing all facets of our business while seeing equity share prices plummet, to say things were tough would be an understatement. Since the outset of the pandemic, to preserve long-term shareholder value, we focused our efforts on the following:

  • Maximizing hotel operating results through aggressive sales strategies and expense controls
  • Minimizing cash burn through reducing headcount at the corporate and hotel levels, implementing temporary salary reductions and significantly cutting capital expenditures
  • Improving liquidity through the opportunistic sale of hotels at non-discounted pricing
  • Preserving balance sheet strength by maintaining flexibility and capacity on our credit facility and obtaining new financing on our hotel development.

“We were able to execute on these essential points, and for that, I am thankful to all of the employees of Chatham and Island for their above and beyond efforts during 2020,” Fisher stated. “Despite a global pandemic, we generated positive Adjusted EBITDA for the full year, we paid all debt service which includes principal amortization of $9 million, our net debt only increased $8 million and our leverage ratio slightly increased from 34 percent to 36 percent based on the ratio of the company’s net debt to hotel investments at cost.

“Operationally, Chatham continued to generate some of the best operating metrics of all lodging REITs during 2020, supporting our longstanding belief that our platform working alongside Island Hospitality is the best among lodging REITs. Examples of some incredible results in the midst of a global pandemic include:

  • Produced the highest absolute RevPAR of any lodging REIT over the last three quarters of 2020
  • Generated some of, if not the, highest operating margins of all lodging REITs in 2020
  • Generated the second highest hotel EBITDA per room of all lodging REITs during the pandemic
  • Gained significant market share throughout the pandemic with an average monthly RevPAR index of 136 over the last nine months of 2020, compared to an index of 118 in 2019, an increase of 15 percent
  • Kept all hotels open, maximizing revenue, cash flow and allowing us to employ more people.

“Our outperformance is a testament to great portfolio attributes, high-quality, extended-stay hotels and premium-branded, select-service hotels in locations that generate room revenue from diverse demand sources. Chatham has the largest concentration of extended-stay rooms of all lodging REITs. For years, we have touted the benefits of a portfolio such as ours through all phases of a lodging cycle, and our performance over the past year certainly proves that. As COVID-19 vaccinations roll-out across the United States and the world, we expect travel to rebound meaningfully in the second half of the year and into 2022 and 2023, and we believe that we will reach cash flow breakeven levels sooner than most other lodging REITs,” Fisher concluded.

COVID-19 Hotel Operations Update

The below chart summarizes monthly RevPAR statistics by month for the company’s 39 comparable hotels:

 

October

 

November

 

December

 

January

Occupancy – 2020/2021

52%

 

44%

 

40%

 

46%

ADR – 2020/2021

$108

 

$103

 

$101

 

$104

RevPAR – 2020/2021

$56

 

$45

 

$40

 

$47

RevPAR – 2019/2020

$145

 

$119

 

$95

 

$104

% Change in RevPAR

(61)%

 

(62)%

 

(58)%

 

(55)%

RevPAR Index

126

 

132

 

129

 

132

Approximately 80 percent of Chatham’s hotel EBITDA is generated from its Residence Inn and Homewood Suites hotels. Chatham has the highest concentration of extended-stay rooms of any public lodging REIT at 58 percent. Fourth quarter 2020 occupancy, ADR and RevPAR for each of the company’s major brands is presented below (number of hotels in parentheses) and based on the hotels owned as of December 31, 2020:

 

Residence Inn (16)

 

Homewood Suites (7)

 

Courtyard (5)

 

Hilton

Garden Inn

(4)

 

Hampton Inns (3)

Occupancy – 2020

54%

 

47%

 

32%

 

30%

 

55%

ADR – 2020

$111

 

$87

 

$86

 

$118

 

$104

RevPAR – 2020

$60

 

$41

 

$28

 

$36

 

$57

RevPAR – 2019

$137

 

$108

 

$89

 

$123

 

$109

% Change in RevPAR

(56)%

 

(62)%

 

(69)%

 

(71)%

 

(48%)

The below chart summarizes key hotel operating performance measures per month during the 2020 fourth quarter and for the three months ended December 31, 2020. RevPAR is for the 40 comparable hotels for October and November and 39 comparable hotels for December. Gross operating profit is calculated as Hotel EBITDA plus property taxes, ground rent and insurance (in millions, except for RevPAR):

 

October

 

November

 

December

 

Q4 2020

RevPAR – 2020

$56

 

$45

 

$40

 

$47

Gross operating profit

$3.9

 

$2.0

 

$1.2

 

$7.1

Hotel EBITDA

$1.9

 

$0.1

 

$0.3

 

$2.3

Sale of Mission Valley Hotel

In late November, Chatham completed the sale of the 192-room Residence by Marriott San Diego Mission Valley for $67 million, or approximately $349,000 per room, to the San Diego Housing Commission (SDHC). Proceeds from the sale were used to repay the $27 million mortgage on the hotel. After sales related expenses, including Marriott termination fees, remaining net proceeds of approximately $38 million were used to repay credit facility borrowings.

“As we have always strategized, we aim to be opportunistic with respect to acquisitions and dispositions, and this sale checks all the boxes for a successful transaction,” emphasized Dennis Craven, Chatham’s chief operating officer. “This was very attractive pricing as the price equates to an approximate 6.5 percent capitalization rate on 2019 net operating income. Using the proceeds to pay off a mortgage that was maturing in 2023, as well as a meaningful amount of our credit facility, significantly enhances the strength of our balance sheet and provides us with meaningful liquidity to weather the pandemic or be opportunistic with respect to acquiring hotels at a discount where we see substantial upside.”

Credit Facility Amendment

In December 2020, Chatham amended its credit facility. This amendment follows the previous amendment completed in May 2020.

Key terms of this amendment, which are applicable during the waiver period, are as follows:

  • Waiver of key financial covenants through December 31, 2021.
    • Testing of covenants as of March 31, 2022.
  • Continued full availability of entire $250 million credit facility, including the ability to use capacity under the credit facility to acquire hotels.
  • Maintain applicable margin on borrowings at LIBOR plus 250 basis points if borrowings on the credit facility are under $200 million and LIBOR plus 300 basis points if borrowings are over $200 million.
  • Maintain minimum liquidity of $25 million whether in cash or available capacity under the credit facility.
  • Certain limitations on the incurrence of additional indebtedness.
  • Common share dividends are allowed but limited to 100 percent of REIT taxable income, and any dividends paid would include a cash component no greater than the minimum percentage allowed under the Internal Revenue Code.

Participating lenders in the credit facility include Barclays Bank PLC, Regions Capital Markets, Citibank N.A., US Bank National Association, Wells Fargo Bank National Association, Bank of America N.A., Citizens Bank N.A. and BMO Harris Bank N.A.

“We deeply understand our responsibility to protect long-term value for our equity holders,” commented Jeremy Wegner, Chatham’s chief financial officer. “Through our strategic actions both at the hotel and corporate level, as well as with this amendment, we have further solidified our financial position which should propel Chatham to emerge from the pandemic healthier than many of our lodging REIT peers.”

COVID-19 Corporate Update

In addition to the hotel sale and the credit facility amendments, Chatham has taken aggressive corporate actions to mitigate the operating and financial impact of the COVID-19 (coronavirus) pandemic in an all-out effort to protect its balance sheet, preserve its liquidity and minimize cash burn. Some of the major steps include:

  • Suspended its monthly dividend.
  • Paying all scheduled debt service.
  • Closed on a $40 million construction loan which fully funds the remaining capital expenditures on its development in the Warner Center submarket of Los Angeles.
  • Significantly reduced its 2020 budgeted capital expenditures from $23 million to approximately $14 million, which included extensive renovations at two hotels.
  • Temporarily reduced compensation for its executive officers, employees and Board of Trustees between 25 percent and 50 percent for the last nine months of 2020. Such reductions were significantly more than most lodging REITs.

The below chart summarizes key financial performance measures for the three months ended December 31, 2020. Corporate EBITDA is calculated as hotel EBITDA minus cash corporate general and administrative expenses and is before debt service and capital expenditures. Debt service includes interest expense and principal amortization on its secured debt (approximately $2.3 million per quarter and $9.0 million in 2020). Cash used before CAPEX is calculated as Corporate EBITDA less debt service. Amounts are in millions, except RevPAR. RevPAR is for the 40 comparable hotels for October and November and 39 comparable hotels for December.

 

October

 

November

 

December

 

Q4 2020

RevPAR – 2020

$56

 

$45

 

$40

 

$47

Hotel EBITDA

$1.9

 

$0.1

 

$0.3

 

$2.3

Corporate EBITDA

$1.2

 

$(0.8)

 

$(0.4)

 

$0.0

Debt service

$(3.1)

 

$(3.3)

 

$(3.1)

 

$(9.5)

Cash used before CAPEX

$(1.9)

 

$(4.1)

 

$(3.5)

 

$(9.5)

Chatham has estimated liquidity of $136 million, including cash of approximately of $21 million, as of December 31, 2020, and remaining borrowing capacity on the credit facility of $115 million.

Hotel Investments

During the 2020 fourth quarter, the company substantially completed the renovation of the Residence Inn in Anaheim, Calif., including the addition of a new bar. The company commenced and completed two renovations during 2020. During 2020, Chatham’s capital expenditures were approximately $14.5 million on existing hotels, excluding the Warner Center development.

During 2021, Chatham expects capital expenditures of $6.3 million, excluding any spending related to the Warner Center development since the development is fully funded by a construction loan. Chatham does not intend to complete any renovations in 2021.

Hotel Under Development & Construction Loan Executed

Chatham is developing a hotel in the Warner Center submarket of Los Angeles, Calif., on a parcel of land owned by the company. The company expects the total development costs to be approximately $70 million, inclusive of land of $6.6 million. Including land, the company has incurred costs to date of approximately $43.7 million. Construction is ahead of the previously announced schedule, and the hotel is expected to open during the 2021 fourth quarter.

Capital Markets & Capital Structure

As of December 31, 2020, the company had net debt of $588.6 million (total consolidated debt less unrestricted cash), an increase of only $8.4 million from December 31, 2019. Total debt outstanding was $609.7 million at an average interest rate of 4.4 percent, comprised of $461.1 million of fixed-rate mortgage debt at an average interest rate of 4.7 percent, $135.3 million outstanding on the company’s $250 million senior unsecured revolving credit facility, which currently carries a 3.1 percent interest rate and $13.3 million outstanding on the Warner Center construction loan, which carries a 7.75 percent interest rate.

Chatham’s leverage ratio was approximately 35.8 percent on December 31, 2020, based on the ratio of the company’s net debt to hotel investments at cost, which now excludes the investment in the Inland joint venture. The weighted average maturity date for Chatham’s fixed-rate debt is March 2024.

On a pro forma basis as of December 31, 2020, assuming the $250 million facility is fully drawn plus $474 million of outstanding secured debt, the company’s pro forma leverage would be 42.8 percent based on the ratio of the company’s pro forma net debt to hotel investments at cost.

Joint Venture Investments

On September 24, 2020, Colony Capital announced that it had entered into an agreement to sell six of its hospitality portfolios, including the Innkeepers joint venture, in a transaction with a gross equity sale price of $67.5 million. The Inland JV is not included in this proposed transaction. If the Innkeepers portfolio is sold, Chatham will receive a one-time payment of $2.8 million for its interest in the Innkeepers joint venture. The transaction is subject to closing conditions, including the assumption of debt by the purchaser.

Chatham’s investment in the Inland joint venture is fully impaired, and Chatham’s financial results no longer include its share of equity income or EBITDA from the Inland joint venture. Colony Capital and Chatham are fully cooperating with the receiver who is in full control of the portfolio.

The debt of the joint ventures is non-recourse to Chatham except for customary non-recourse carveout provisions such as fraud, material and intentional misrepresentations and misapplication of funds. Defaults under the joint venture debt do not trigger cross-defaults under any Chatham debt.

Dividend

Chatham paid 2020 dividends of $0.22 per common share during the first quarter and has suspended its monthly dividend. Although not expected, any dividend required for Chatham to maintain its REIT status for 2021 will be declared in the 2021 fourth quarter and paid in January 2022. Pursuant to its amended credit facility, any dividends paid would include a cash component no greater than the minimum percentage allowed under the Internal Revenue Code.

2021 Guidance

Due to uncertainty surrounding the impact of the pandemic on the hotel industry, the company is not providing guidance.

About Chatham Lodging Trust

Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. At December, 31, 2020, the company owns interests in 85 hotels totaling 11,848 rooms/suites, comprised of 39 properties it wholly owns with an aggregate of 5,900 rooms/suites in 15 states and the District of Columbia and a minority investment in the Innkeepers joint ventures that owns 46 hotels with an aggregate of 5,948 rooms/suites.

       

CHATHAM LODGING TRUST

Consolidated Balance Sheets

(In thousands, except share and per share data)

       

 

December 31,

2020

 

December 31,

2019

 

 

 

 

Assets:

 

 

 

Investment in hotel properties, net

$

1,265,174

 

 

$

1,347,116

 

Investment in hotel properties under development

43,651

 

 

20,496

 

Cash and cash equivalents

21,124

 

 

6,620

 

Restricted cash

10,329

 

 

13,562

 

Investment in unconsolidated real estate entities

 

 

17,969

 

Right of use asset, net

20,641

 

 

21,270

 

Hotel receivables (net of allowance for doubtful accounts of $248 and $451, respectively)

1,688

 

 

4,626

 

Deferred costs, net

5,384

 

 

4,271

 

Prepaid expenses and other assets

2,266

 

 

2,615

 

Deferred tax asset, net

 

 

29

 

Total assets

$

1,370,257

 

 

$

1,438,574

 

Liabilities and Equity:

 

 

 

Mortgage debt, net

$

460,145

 

 

$

495,465

 

Revolving credit facility

135,300

 

 

90,000

 

Construction loan

13,325

 

 

 

Accounts payable and accrued expenses

25,374

 

 

33,012

 

Distributions and losses in excess of investments in unconsolidated real estate entities

19,951

 

 

15,214

 

Lease liability, net

23,233

 

 

23,717

 

Distributions payable

469

 

 

6,142

 

Total liabilities

677,797

 

 

663,550

 

Commitments and contingencies

 

 

 

Equity:

 

 

 

Shareholders’ Equity:

 

 

 

Preferred shares, $0.01 par value, 100,000,000 shares authorized and unissued at December 31, 2020 and 2019

 

 

 

Common shares, $0.01 par value, 500,000,000 shares authorized; 46,973,473 and 46,928,445 shares issued and outstanding at December 31, 2020 and 2019, respectively

470

 

 

469

 

Additional paid-in capital

906,000

 

 

904,273

 

Accumulated deficit

(228,718)

 

 

(142,365)

 

Total shareholders’ equity

677,752

 

 

762,377

 

Noncontrolling Interests:

 

 

 

Noncontrolling Interest in Operating Partnership

14,708

 

 

12,647

 

Total equity

692,460

 

 

775,024

 

Total liabilities and equity

$

1,370,257

 

 

$

1,438,574

 

       

CHATHAM LODGING TRUST

Consolidated Statements of Operations

(In thousands, except share and per share data)

       

 

For the three months ended

 

For the years ended

 

December 31,

 

December 31,

 

2020

 

2019

 

2020

 

2019

Revenue:

 

 

 

 

 

 

 

Room

$

26,360

 

$

66,735

 

$

130,564

 

$

296,267

Food and beverage

301

 

2,426

 

2,718

 

9,824

Other

2,029

 

4,092

 

7,589

 

16,567

Reimbursable costs from unconsolidated real estate entities

875

 

1,445

 

4,045

 

5,670

Total revenue

29,565

 

 

74,698

 

 

144,916

 

 

328,328

 

Expenses:

 

 

 

 

 

 

 

Hotel operating expenses:

 

 

 

 

 

 

 

Room

7,069

 

 

16,040

 

 

31,883

 

 

65,270

 

Food and beverage

254

 

 

2,134

 

 

2,456

 

 

8,396

 

Telephone

378

 

 

386

 

 

1,451

 

 

1,638

 

Other hotel operating

326

 

 

1,000

 

 

1,629

 

 

4,039

 

General and administrative

4,187

 

 

6,535

 

 

16,733

 

 

25,641

 

Franchise and marketing fees

2,375

 

 

5,788

 

 

11,608

 

 

25,850

 

Advertising and promotions

772

 

 

1,541

 

 

3,983

 

 

6,043

 

Utilities

2,259

 

 

2,559

 

 

9,229

 

 

10,867

 

Repairs and maintenance

2,448

 

 

3,642

 

 

9,799

 

 

14,321

 

Management fees

1,125

 

 

2,436

 

 

5,289

 

 

10,822

 

Insurance

357

 

 

327

 

 

1,438

 

 

1,364

 

Total hotel operating expenses

21,550

 

 

42,388

 

 

95,498

 

 

174,251

 

Depreciation and amortization

13,522

 

 

12,811

 

 

53,871

 

 

51,505

 

Impairment loss on investment in unconsolidated real estate entities

 

 

 

 

15,282

 

 

 

Property taxes, ground rent and insurance

4,879

 

 

6,053

 

 

23,040

 

 

24,717

 

General and administrative

3,353

 

 

3,465

 

 

11,564

 

 

14,077

 

Other charges

1,601

 

 

1,090

 

 

4,385

 

 

1,441

 

Reimbursable costs from unconsolidated real estate entities

875

 

 

1,445

 

 

4,045

 

 

5,670

 

Total operating expenses

45,780

 

 

67,252

 

 

207,685

 

 

271,661

 

Operating (loss) income before gain (loss) on sale of hotel property

(16,215)

 

 

7,446

 

 

(62,769)

 

 

56,667

 

Gain (loss) on sale of hotel property

21,113

 

 

14

 

 

21,116

 

 

(3,282)

 

Operating (loss) income

4,898

 

 

7,460

 

 

(41,653)

 

 

53,385

 

Interest and other income

32

 

 

35

 

 

179

 

 

190

 

Interest expense net of amounts capitalized, including amortization of deferred fees

(7,010)

 

 

(6,868)

 

 

(28,122)

 

 

(28,247)

 

Loss from unconsolidated real estate entities

(1,325)

 

 

(2,998)

 

 

(7,424)

 

 

(6,448)

 

(Loss ) income before income tax expense

(3,405)

 

 

(2,371)

 

 

(77,020)

 

 

18,880

 

Income tax expense

 

 

 

 

 

 

 

Net (loss) income

(3,405)

 

 

(2,371)

 

 

(77,020)

 

 

18,880

 

Net (loss) income attributable to non-controlling interest

49

 

 

23

 

 

997

 

 

(177)

 

Net (loss) income attributable to common shareholders

$

(3,356)

 

 

$

(2,348)

 

 

$

(76,023)

 

 

$

18,703

 

(Loss) income per Common Share – Basic:

 

 

 

 

 

 

 

Net (loss) income attributable to common shareholders

$

(0.07)

 

 

$

(0.05)

 

 

$

(1.62)

 

 

$

0.39

 

(Loss) income per Common Share – Diluted:

 

 

 

 

 

 

 

Net (loss) income attributable to common shareholders

$

(0.07)

 

 

$

(0.05)

 

 

$

(1.62)

 

 

$

0.39

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

Basic

46,969,483

 

 

46,919,035

 

 

46,961,039

 

 

46,788,784

 

Diluted

46,969,483

 

 

47,220,671

 

 

46,961,039

 

 

47,023,280

 

Distributions per common share:

$

 

 

$

0.33

 

 

$

0.22

 

 

$

1.32

 

       

CHATHAM LODGING TRUST

FFO and EBITDA

(In thousands, except share and per share data)

       

 

For the three months ended

 

For the years ended

 

December 31,

 

December 31,

 

2020

 

2019

 

2020

 

2019

Funds From Operations (“FFO”):

 

 

 

 

 

 

 

Net (loss) income

$

(3,405)

 

 

$

(2,371)

 

 

$

(77,020)

 

 

$

18,880

 

(Gain) loss on sale of hotel property

(21,113)

 

 

(14)

 

 

(21,116)

 

 

3,282

 

(Gain) loss on the sale of assets within unconsolidated real estate entities

(1)

 

 

219

 

 

2

 

 

219

 

Depreciation

13,461

 

 

12,750

 

 

53,627

 

 

51,258

 

Impairment loss on investment in unconsolidated real estate entities

 

 

 

 

15,282

 

 

 

Impairment loss from unconsolidated real estate entities

 

 

859

 

 

1,388

 

 

4,197

 

Adjustments for unconsolidated real estate entity items

793

 

 

1,901

 

 

4,434

 

 

7,493

 

FFO attributed to common share and unit holders

(10,265)

 

 

13,344

 

 

(23,403)

 

 

85,329

 

Other charges

1,601

 

 

1,090

 

 

4,385

 

 

1,441

 

Adjustments for unconsolidated real estate entity items

4

 

 

913

 

 

9

 

 

1,028

 

Adjusted FFO attributed to common share and unit holders

$

(8,660)

 

 

$

15,347

 

 

$

(19,009)

 

 

$

87,798

 

Weighted average number of common shares and units

 

 

 

 

 

 

 

Basic

47,686,099

 

 

47,381,433

 

 

47,635,600

 

 

47,238,309

 

Diluted

47,686,099

 

 

47,683,069

 

 

47,635,600

 

 

47,472,805

 

 

For the three months ended

 

For the years ended

 

December 31,

 

December 31,

 

2020

 

2019

 

2020

 

2019

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”):

 

 

 

 

 

 

 

Net (loss) income

$

(3,405)

 

 

$

(2,371)

 

 

$

(77,020)

 

 

$

18,880

 

Interest expense

7,010

 

 

6,868

 

 

28,122

 

 

28,247

 

Depreciation and amortization

13,522

 

 

12,811

 

 

53,871

 

 

51,505

 

Adjustments for unconsolidated real estate entity items

1,488

 

 

5,063

 

 

8,965

 

 

18,214

 

EBITDA

18,615

 

 

22,371

 

 

13,938

 

 

116,846

 

Impairment loss on investment in unconsolidated real estate entities

 

 

 

 

15,282

 

 

 

Impairment loss from unconsolidated real estate entities

 

 

859

 

 

1,388

 

 

4,197

 

(Gain) loss on sale of hotel property

(21,113)

 

 

(14)

 

 

(21,116)

 

 

3,282

 

(Gain) loss on the sale of assets within unconsolidated real estate entities

(1)

 

 

219

 

 

2

 

 

219

 

EBITDAre

(2,499)

 

 

23,435

 

 

9,494

 

 

124,544

 

Other charges

1,601

 

 

1,090

 

 

4,385

 

 

1,441

 

Adjustments for unconsolidated real estate entity items

4

 

 

164

 

 

9

 

 

293

 

Share based compensation

1,125

 

 

1,211

 

 

4,597

 

 

4,719

 

Adjusted EBITDA

$

231

 

 

$

25,900

 

 

$

18,485

 

 

$

130,997

 

         

CHATHAM LODGING TRUST

ADJUSTED HOTEL EBITDA

(In thousands, except share and per share data)

         

 

 

For the three months ended

 

For the years ended

 

 

December 31,

 

December 31,

 

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(3,405)

 

 

$

(2,371)

 

 

$

(77,020)

 

 

$

18,880

 

Add:

Interest expense

7,010

 

 

6,868

 

 

28,122

 

 

28,247

 

 

Depreciation and amortization

13,522

 

 

12,811

 

 

53,871

 

 

51,505

 

 

Corporate general and administrative

3,353

 

 

3,465

 

 

11,564

 

 

14,077

 

 

Other charges

1,601

 

 

1,090

 

 

4,385

 

 

1,441

 

 

Loss from unconsolidated real estate entities

1,325

 

 

2,998

 

 

7,424

 

 

6,448

 

 

Impairment loss on investment in unconsolidated real estate entities

 

 

 

 

15,282

 

 

 

 

Loss on sale of hotel property

 

 

 

 

 

 

3,282

 

Less:

Interest and other income

(34)

 

 

(35)

 

 

(179)

 

 

(190)

 

 

Gain on sale of hotel property

(21,113)

 

 

(14)

 

 

(21,116)

 

 

 

 

Adjusted Hotel EBITDA

$

2,259

 

 

$

24,812

 

 

$

22,333

 

 

$

123,690

 

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