Investor Presentation

March 2024

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 and plans and objectives. When we use the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions, we intend to identify forward-looking statements.

Statements regarding the following subjects, among others, may be forward-looking: the terms of the proposed financing, market trends in our industry, interest rates, real estate values, the debt financing markets or the general economy or the demand for commercial real estate loans; our business and investment strategy; our projected operating results; actions and initiatives of the U.S. government and changes to U.S. government policies and the execution and impact of these actions, initiatives and policies; the state of the U.S. economy generally or in specific geographic regions; economic trends and economic recoveries; our ability to obtain and maintain financing arrangements; changes in the value of our hotel portfolio; the degree to which our hedging strategies may or may not protect us from interest rate volatility; impact of and changes in governmental regulations, tax law and rates, accounting guidance and similar matters; our ability to satisfy the REIT qualification requirements for U.S. federal income tax purposes; availability of qualified personnel; estimates relating to our ability to make distributions to our shareholders in the future; general volatility of the capital markets and the market price of our common shares; and degree and nature of our competition.

The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. Forward-looking statements are not predictions of future events. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Included in this presentation are certain "non-GAAP financial measures," within the meaning of Securities and Exchange Commission (SEC) rules and regulations, that are different from measures calculated and presented in accordance with GAAP (generally accepted accounting principles). The company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its operating performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA, (4) Adjusted EBITDA and (5) Hotel EBITDA. These non-GAAP financial measures could be considered along with, but not as alternatives to, net income or loss, cash flows from operations or any other measures of the company's operating performance prescribed by GAAP.

2

Business Highlights

  • Operating performance continuing to improve
    • Excluding our tech driven hotels, RevPAR up versus 2019 for each of the last twelve months
    • RevPAR for Chatham's tech driven hotels up 10-30% for each of the last five months
    • Chatham RevPAR up 6.5% in December and 6.3% in January vs industry growth of 0.3% in December and 0.9% in January
  • Significant upside as business travel recovers in tech focused markets
    • Recovery of Silicon Valley / Bellevue properties to '19 levels would add $16.0 million to LTM EBITDA / $0.32 per share of FFO (increases of approximately 16% and 29% relative to consensus 2023 estimates)
  • Current share price / valuation provides meaningful upside opportunity
    • Implied cap rate of 8.3% on LTM actual corporate NOI and 9.8% on pro forma NOI assuming a full recovery of Silicon Valley and Bellevue hotels
  • Performance should benefit from very limited supply growth in coming years
    • Over 2/3 of Chatham's hotels have no supply under construction within a 5-mile radius
  • Intense cost control drives outstanding margins
  • Capital recycling has enhanced portfolio quality, increased returns and will drive future earnings growth
  • Significant debt reduction, recent CMBS issuance and undrawn $260 million credit facility have strengthened balance sheet and provide capacity for future growth

3

Travel Is Recovering

Air travel has surpassed 2019 levels in 2024 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 2/19 2/26 3/5 3/12 3/19 3/26 4/2 4/9 4/16 4/23 4/30

5/7 5/14 5/21 5/28

6/4 6/11 6/18 6/25

7/2 7/9 7/16 7/23 7/30

8/6 8/13 8/20 8/27 9/3

9/10 9/17 9/24 10/1 10/8 10/15 10/22 10/29 11/5 11/12 11/19 11/26 12/3 12/10 12/17 12/24 12/31

2019

2020

2021

2022

2023

2024

4

Operating Performance Is Improving

RevPAR has continued to improve as business travel and international travel continue to recover while most markets maintain positive fundamentals

Occ 2019

Occ

ADR 2019

ADR

RevPAR

100%

$190

$189

$186

$189

$200

$181

$180

$181

90%

$170

$179

$175

$180

$181

$179

$176

$169

$165

$167

$176

$174

$161

$158

$172

$170

86%

88%

86%

84%

$158

80%

$163

$160

$163

84%

83%

82%

$157

$155

$154

$143

81%$146

$148

78%

$144

$157

77%

70%

77%

$140

$139

$140

$142

$118

68%

68%

$118

68%

60%

$120

$120

$103

$101

50%

$100

$95

40%

78%

78%

78%

82%

82%

79%

79%

78%

$80

70%

70%

71%

64%

30%

60%

61%

$60

20%

$40

10%

$20

0%

Jan '23

Feb '23

Mar '23

Apr '23

May '23

Jun '23

Jul '23

Aug '23

Sep '23

Oct '23

Nov '23

Dec '23

Jan '24

Feb '24

$0

% change in RevPAR compared to same period of 2019

-11.3%

-4.6%

-3.9%

-1.2%

-1.3%

-0.3%

-2.4%

-4.9%

4.3%

0.1%

-4.8%

4.1%

-5.6%

-5.7%

5

Operating Performance Is Improving

Excluding our hotels in Silicon Valley and Bellevue where the recovery has been slower, performance is above 2019 levels

RevPAR versus 2019

12.5%

9.2%

5.3%

6.3%

6.3%

5.8%

5.4%

6.4%

4.3%

7.9%

6.4%

4.1%

0.1%

0.6%

1.4%

1.6%

-0.1%

-0.3%

-1.2%

-1.3%

-2.4%

-3.9%

-4.6%

-4.9%

-4.8%

-5.6%

-5.7%

-11.3%

Jan '23

Feb '23

Mar '23

Apr '23

May '23

Jun '23

Jul '23

Aug '23

Sep '23

Oct '23

Nov '23

Dec '23

Jan '24

Feb '24

Entire Portfolio

Ex SV and Bellevue

6

Weekday Performance Is Gaining Momentum

Improving midweek results demonstrate a continuing recovery in business travel

  • Recovery in business travel should drive outsized results for Chatham given its significant exposure to this segment

Chatham RevPAR % Change vs Prior Year

8%

9%

3%

1%

1%

1%

2%

0%

-1%

-8%

Oct '23

Nov '23

Dec '23

Jan '24

Feb '24

Weekday

Weekend

7

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 2023

36.4% 35.8% 35.5%

30.3% 30.1%

28.2%

28.1%

27.9%

27.8%

27.7%

26.5%

25.8%

APLE

CLDT

INN

RLJ

HST

AHT

DRH

SHO

PK

BHR

XHR

PEB

8

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 $19.0 million of EBITDA for the LTM ended 12/31/23 versus $35.0 million in 2019
  • Recovery of these properties to '19 levels would add $16.0 million to LTM EBITDA / $0.32 per share of FFO (increases of approximately 16% and 29% relative to consensus 2024 estimates)

Hotel EBITDA in Selected Hotels ($ in 1,000s)

LTM RevPAR in Selected Hotels ($)

$35,018

2019 RevPAR $174

$6,063

$3,807

$134

$133

$126

$6,427

$19,019

$118

$126

$123

$93

$4,341

$10,072

$2,623

$63

$70

$75

$3,376

$54

$8,649

$4,841

$45

$3,838

2019 EBITDA

2023 EBITDA

Sunnyvale I

Sunnyvale II

Mt. View

San Mateo

Bellevue

RevPAR figures LTM average for Residence Inn Sunnyvale I, Residence Inn Sunnyvale II, Residence Inn Mt. View, Residence Inn San Mateo and Residence

9

Inn Bellevue.

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%

10.5%

10.1%

11.0%

Oct '23

Nov '23

Dec '23

Jan '24

Feb '24

10

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Disclaimer

Chatham Lodging Trust published this content on 04 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2024 20:40:07 UTC.