Chatham Lodging Trust (CLDT) 2023 Q2 法說會逐字稿

Good morning, and welcome to the Chatham Lodging Trust Second Quarter 2023 Financial Results Conference Call. (Operator Instructions) Please note, this event is being recorded.

早安，歡迎參加查塔姆住宿信託基金 2023 年第二季財務績效電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Chris Daly, President of DG Public Relations. Please go ahead.

我現在想將會議交給 DG 公共關係部總裁 Chris Daly。請繼續。

Thank you, Jerry. Good morning, everyone, and welcome to the Chatham Lodging Trust Second Quarter 2023 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 2, 2023, 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.

謝謝你，傑瑞。大家早安，歡迎參加查塔姆住宿信託基金 2023 年第二季業績電話會議。請注意，我們今天的許多評論被視為聯邦證券法定義的前瞻性陳述。正如我們最新的 10-K 表格和其他 SEC 文件中所述，這些陳述存在已知和未知的風險和不確定性。除非另有說明，本次電話會議中的所有資訊均截至 2023 年 8 月 2 日，本公司不承擔更新任何前瞻性聲明以使聲明符合實際結果或本公司預期變更的義務。您可以在我們的網站 chathamlodgingtrust.com 上找到我們向 SEC 提交的文件和收益發布的副本，其中包含本次電話會議中引用的非 GAAP 財務指標的調節表。

Now to provide you with some insights on the Chatham's 2023 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 and Chief Financial Officer.

現在，為了向您提供有關查塔姆2023 年第二季度業績的一些見解，請允許我介紹一下傑夫·費舍爾(Jeff Fisher)，他是查塔姆(Chatham) 董事長、總裁兼首席執行官；丹尼斯‧克雷文 (Dennis Craven)，執行副總裁兼營運長；以及資深副總裁兼財務長 Jeremy Wegner。

Let me turn the session over to Jeff Fisher. Jeff?

讓我把會議交給傑夫·費雪。傑夫？

Thanks, Chris, and good morning, everyone. I certainly appreciate everyone being on the call this morning with us. For the fifth consecutive quarter, we've outperformed the industry RevPAR growth with RevPAR growth over 5% for the quarter, driven by pretty equal increases in both occupancy and ADR. Relative to 2019, RevPAR was down slightly, just a little more than 1% for the quarter. In fact, versus 2019, RevPAR has sequentially improved each month of 2023 through June. Relative to '19, RevPAR improved each month of the quarter with RevPAR down 3%, 2% and 1%, a key indicator that business travel continues its recovery across the country.

謝謝克里斯，大家早安。我當然感謝今天早上與我們通話的每個人。連續第五個季度，在入住率和平均房價增長相當的推動下，我們的每間可出租客房收入增長超過了行業 5%。與 2019 年相比，每間可用客房收入略有下降，本季僅略高於 1%。事實上，與 2019 年相比，2023 年至 6 月的每個月 RevPAR 都在持續改善。與 19 年相比，該季度每個月的 RevPAR 均有所改善，RevPAR 分別下降了 3%、2% 和 1%，這是商務旅行在全國持續復甦的關鍵指標。

This is particularly impressive given the loss of most of the intern business in Silicon Valley, Bellevue, Washington and also in Austin, Texas. The loss of intern business impacted performance for about 1/3 of the second quarter and will impact 2/3 of this quarter, and we'll make third quarter comparisons to last year in 2019, tougher. Having said that, in terms of return and much larger numbers next year for tech companies, which should provide outsized growth next year and beyond for us.

考慮到矽谷、華盛頓州貝爾維尤以及德克薩斯州奧斯汀的大部分實習生業務的損失，這一點尤其令人印象深刻。實習生業務的損失影響了第二季約 1/3 的業績，並將影響本季 2/3 的業績，我們將把 2019 年第三季與去年相比，變得更加艱難。話雖如此，就科技公司明年的回報和更大的數字而言，它們應該會在明年及以後為我們帶來巨大的成長。

Portfolio occupancy rose to 79% in the quarter despite the intern loss, which is up from 77% last year and not far off the 2019 occupancy of 83%. Within the week, weekday occupancy reached 78% in the quarter and June weekday occupancy of 81.3% was the highest level since the pandemic. ADR was up $3 over last year and up $6 over 2019. Again, looking at the weekday business traveler, weekday ADR was up $6 over last year and the June weekday ADR was $186. That's the third highest since the pandemic and only slightly behind June and July 2022 ADR of $187. ADRs continue to be pushed by our operators all days of the week. Interesting point is that last weekend's ADR for the company was over $200.

儘管有實習生流失，本季投資組合入住率仍升至 79%，高於去年的 77%，與 2019 年 83% 的入住率相差不遠。一週內，該季度的平日入住率達到 78%，其中 6 月份的平日入住率為 81.3%，是大流行以來的最高水準。 ADR 比去年上漲 3 美元，比 2019 年上漲 6 美元。同樣，對於工作日商務旅行者來說，工作日 ADR 比去年上漲 6 美元，6 月份工作日 ADR 為 186 美元。這是自大流行以來的第三高水平，僅略低於 2022 年 6 月和 7 月的 ADR 187 美元。我們的運營商將在一周中的每一天繼續推送 ADR。有趣的是，上週末該公司的 ADR 超過 200 美元。

Outside of our tech-driven markets, we really are seeing nice growth year-over-year with each of our top markets other than, of course, the 3 tech markets, led by Washington, D.C., our coastal Northeastern hotels and Los Angeles producing RevPAR growth of 11%, 10% and 7%, respectively. Those 3 markets account for over 25% of our EBITDA. Leisure travel remains strong with our leisure markets producing strong RevPAR growth in the quarter. We can look at Destin, Florida, up 8%; Portsmouth, New Hampshire, up 24%; and Anaheim up 2%. Fort Lauderdale, up 14%; and Savannah, up 4% with Portland flat, but opportunities are strong going forward. Driven by our 5% RevPAR growth, we were able to generate year-over-year EBITDA, FFO and FFO per share growth. We delivered 5% FFO per share growth over last year, producing FFO per share of $0.43 compared to $0.41 last year. Our FFO per share of $0.43 exceeded consensus estimates of $0.40 per share.

除了我們的技術驅動市場之外，我們確實看到了我們每個頂級市場的逐年良好增長，當然，除了以華盛頓特區、我們的沿海東北酒店和洛杉磯為首的三個技術市場之外RevPAR 分別增長11% 、10% 和7%。這三個市場占我們 EBITDA 的 25% 以上。休閒旅遊依然強勁，我們的休閒市場在本季實現了強勁的 RevPAR 成長。我們可以看看佛羅裡達州德斯坦，上漲了 8%；新罕布夏州朴茨茅斯上漲 24%；阿納海姆上漲 2%。勞德代爾堡，上漲 14%；和薩凡納，上漲 4%，波特蘭持平，但未來機會很大。在 5% RevPAR 成長的推動下，我們實現了每股 EBITDA、FFO 和 FFO 的年成長。與去年相比，我們每股 FFO 成長了 5%，每股 FFO 產量為 0.43 美元，而去年為 0.41 美元。我們的每股 FFO 為 0.43 美元，超出了每股 0.40 美元的共識預期。

Operationally, we were able to generate operating margins of 49%, flat to last year and the 2019 second quarter in hotel EBITDA margins of 41%, just below the prior year and 2019 levels of 42%. The key driver on the expense side was holding hourly wages flat year-over-year. Interestingly, when you exclude the 5 tech hotels, margins were up 40 basis points to 2019 levels. Again, shows you the inherent upside once those hotels start performing.

在營運方面，我們實現了 49% 的營業利潤率，與去年和 2019 年第二季度持平；酒店 EBITDA 利潤率為 41%，略低於去年和 2019 年 42% 的水平。支出方面的主要驅動因素是每小時工資較去年同期持平。有趣的是，如果排除 5 家科技飯店，利潤率比 2019 年的水準成長了 40 個基點。再次向您展示這些酒店開始表現後固有的優勢。

With good flow through, we were able to generate corporate level cash flow before CapEx and common dividends of $22 million in the quarter, up approximately 10% over last year. With the excess cash flow, we were able to repay a $20 million maturing mortgage. With only $70 million of maturing mortgages between now and June 2024, we're in an excellent position to address all remaining maturities this year and next year. We continue to pursue external growth opportunities though we must, of course, be mindful of our cost of capital while assessing in-place cash flow yield and growth projections on potential acquisitions.

憑藉良好的流動性，我們能夠在本季度產生 2,200 萬美元的資本支出和普通股股息之前的企業級現金流，比去年增長約 10%。憑藉多餘的現金流，我們能夠償還 2000 萬美元的到期抵押貸款。從現在到 2024 年 6 月，到期抵押貸款只有 7,000 萬美元，我們處於有利地位，可以解決今年和明年所有剩餘的到期貸款。我們繼續尋求外部成長機會，但當然，我們必須在評估現有現金流收益率和潛在收購的成長預測時注意我們的資本成本。

With the significant rise in interest rates, brands becoming more focused on renovation requirements and a bunch of maturing debt occurring throughout the industry, we believe there will be some opportunities to acquire hotels that fit into our high-quality portfolio in the back half of this year and certainly into next year. With 39 hotels, we can acquire 1 or 2 hotels and it significantly moves the needle with respect to EBITDA and FFO growth. The good news is we have substantial internal growth upside, as I said, inherent in our existing portfolio with the ultimate recovery of Silicon Valley and Seattle, as well as the return of the intern business in Austin. If those hotels reach 2019 RevPAR in 2024, that would generate incremental portfolio RevPAR growth of approximately 7% and incremental FFO per share growth of $0.32. If you include the Austin intern business, that will add another 50 basis points to RevPAR and FFO per share of another $0.02. So including all those hotels, those 7, if you use current consensus estimates for 2023, adjusted FFO per share would increase almost $0.34 per share which alone would represent an almost 30% increase. That certainly is a substantial upside as you look at our company and look forward.

隨著利率的大幅上升，品牌變得更加關注裝修要求以及整個行業出現的大量到期債務，我們相信在今年下半年將有一些機會收購適合我們高品質投資組合的酒店今年，當然是明年。擁有 39 家酒店後，我們可以收購 1 或 2 家酒店，這將顯著推動 EBITDA 和 FFO 的成長。好消息是，正如我所說，隨著矽谷和西雅圖的最終復甦以及奧斯汀實習生業務的回歸，我們現有投資組合固有的巨大內部成長空間。如果這些飯店在 2024 年達到 2019 年 RevPAR，則投資組合 RevPAR 將成長約 7%，每股 FFO 將成長 0.32 美元。如果算上奧斯汀實習生業務，則每股 RevPAR 和 FFO 將再增加 50 個基點，即 0.02 美元。因此，包括所有這些酒店，即這 7 家酒店，如果使用目前對 2023 年的共識估計，調整後的每股 FFO 將增加近 0.34 美元，僅此一項就意味著增加近 30%。當您審視我們公司並展望未來時，這無疑是一個巨大的優勢。

Before turning it over to Dennis, I want to spend a few minutes updating everyone on what we're seeing currently in Silicon Valley and Seattle. Obviously, the loss of the intern business hurts our current year results, especially this quarter. But coming off the massive layoffs last year and early this year, big tech is now posting big profit numbers. All of the big tech is talking about investing significant dollars into CapEx and product development. International travel continues to improve with deployments in San Francisco, San Jose and Seattle at their highest level since the pandemic. Seattle deployments are actually up over 2019 levels. Again, encouraging news and a good data point to show underlying trends are getting better and better.

在將其交給丹尼斯之前，我想花幾分鐘向大家介紹我們目前在矽谷和西雅圖所看到的最新情況。顯然，實習生業務的損失損害了我們今年的業績，尤其是本季。但在經歷了去年和今年年初的大規模裁員之後，大型科技公司現在正在公佈巨額利潤。所有大型科技公司都在談論向資本支出和產品開發投入大量資金。國際旅行持續改善，舊金山、聖荷西和西雅圖的部署達到大流行以來的最高水準。西雅圖的部署量實際上高於 2019 年的水準。再次，令人鼓舞的消息和良好的數據點表明潛在趨勢正在變得越來越好。

International occupancy at our 2 Sunnyvale hotels was approximately 22% in the second quarter, with most of the demand coming from Korea, China and India. General business travel demand trends are encouraging in the valley. We're experiencing an uptick in demand from TikTok. Electric vehicle-related launching demand continues to grow, of course. And we've recently seen group requests with an increase on size now hitting into the hundreds for late Q3 and early in the fourth quarter. Though the absolute attendee numbers for apples fall programs are down to 2019, they are occurring and we should hopefully see some demand out of that. Of course, part of this development relates to AI, which will remain a significant growth opportunity across all the industries. Every tech company is assessing and developing generative AI tools into their operations. NVIDIA, ServiceNow and Accenture just announced a partnership to accelerate AI development further.

第二季度，我們在桑尼維爾的 2 家飯店的國際入住率約為 22%，其中大部分需求來自韓國、中國和印度。矽谷的商務旅遊需求整體趨勢令人鼓舞。我們正在經歷 TikTok 的需求上升。當然，與電動車相關的推出需求持續成長。我們最近看到第三季末和第四季初的團體請求規模有所增加，目前已達到數百個。儘管截至 2019 年，蘋果秋季計畫的絕對參與人數有所下降，但它們正在發生，我們希望能看到一些需求。當然，這一發展的一部分與人工智慧有關，人工智慧仍然是所有行業的重要成長機會。每家科技公司都在評估和開發生成式人工智慧工具以融入其營運中。 NVIDIA、ServiceNow 和埃森哲剛剛宣佈建立合作夥伴關係，以進一步加速人工智慧開發。

And additionally, reshoring chip manufacturing and semiconductor tech investment is going to be a huge tailwind for tech. And in support of this movement just 2 months ago, Applied Materials, which has forever been one of our top 5 accounts in Sunnyvale, announced plans to build a $4 billion, 180,000 square foot R&D facility in Sunnyvale, just blocks from our 2 Sunnyvale Residence Inns. The facility will be a state-of-the-art facility for collaborative innovation with chip makers universities and ecosystem partners. Some of those partners include AMD, NVIDIA and Western Digital, all customers of ours. We've owned these hotels for many years, and we know that these companies are continually evolving, investing and developing the world's greatest technologies. As these technologies evolve and these companies continue to grow our hotels as they always have in the up cycle will recover, and our earnings will accelerate rapidly.

此外，晶片製造和半導體技術投資的回流將成為科技業的巨大推動力。就在兩個月前，為了支持這項運動，應用材料公司（一直是我們在桑尼維爾的5 大客戶之一）宣布計劃在桑尼維爾建造一座耗資40 億美元、佔地180,000 平方英尺的研發設施，距離我們的桑尼維爾2 號住宅僅幾個街區旅館。該設施將成為與晶片製造商、大學和生態系統合作夥伴合作創新的最先進設施。其中一些合作夥伴包括 AMD、NVIDIA 和西部數據，它們都是我們的客戶。我們擁有這些酒店很多年了，我們知道這些公司正在不斷發展、投資和開發世界上最先進的技術。隨著這些技術的發展和這些公司的不斷發展，我們的酒店將像往常一樣在上升週期中恢復，我們的利潤將迅速加速。

With that, I'd like to turn it over to Dennis.

有了這個，我想把它交給丹尼斯。

Thanks, Jeff. Our portfolio performed significantly better than the industry with first -- with second quarter RevPAR growth of 5%, again, exceeding industry performance by approximately 85%. This trend of beating the industry will be challenged in the third quarter due to the intern loss for 2/3 of the quarter, but certainly will continue into 2024. Silicon Valley, our largest market, comprising 15% of EBITDA, saw occupancy grow slightly, year-over-year despite the loss of most intern business and still down a little bit to 81% occupancy in 2019.

謝謝，傑夫。我們的投資組合表現明顯優於產業，第一季的 RevPAR 成長了 5%，再次超過該產業表現約 85%。由於該季度2/3 的實習生流失，這種超越行業的趨勢將在第三季度受到挑戰，但肯定會持續到2024 年。矽谷是我們最大的市場，佔EBITDA 的15%，入住率略有成長儘管大部分實習生業務流失，但 2019 年入住率仍小幅下降至 81%。

ADR is where the most opportunity is and we need to see continuing demand growth to be able to drive ADR. ADR was $184, down 3% versus last year and off 23% versus the 2019 second quarter ADR of $240. RevPAR was off 28% versus 2019 levels. Weekday occupancy in the Valley was 77% in the quarter. Silicon Valley EBITDA was $4.6 million, which was down about $600,000 from last year and down about $3 million versus 2019 levels.

ADR 是最有機會的地方，我們需要看到需求持續成長才能推動 ADR。 ADR 為 184 美元，比去年下降 3%，比 2019 年第二季的 ADR 240 美元下降 23%。 RevPAR 與 2019 年的水準相比下降了 28%。本季矽谷的工作日入住率為 77%。矽谷 EBITDA 為 460 萬美元，比去年減少約 60 萬美元，比 2019 年減少約 300 萬美元。

In other key tech markets, Seattle RevPAR is off 9%, which had a favorable underlying trend. Occupancy was actually up 1% year-over-year to 73%, but still down to 84% occupancy in 2019. Second quarter ADR of $187 was off 5% versus 2019. EBITDA was $1.3 million in the quarter, down from 2022 second quarter EBITDA of $1.8 million and $2 million in the 2019 second quarter. In Austin, RevPAR was off 5% versus last year, again, due to the loss of the intern business. The summer in Austin is the seasonally slower months, so it's certainly more difficult to replace that lost intern revenue there. Excluding the interns, RevPAR would have been up approximately 3% to 4%.

在其他主要科技市場，西雅圖的 RevPAR 下降了 9%，這是一個有利的潛在趨勢。入住率實際上年增1%，達到73%，但2019 年入住率仍降至84%。第二季平均房價為187 美元，較2019 年下降5%。本季EBITDA 為130 萬美元，低於2022 年第二季2019 年第二季 EBITDA 分別為 180 萬美元和 200 萬美元。在奧斯汀，由於實習生業務的損失，RevPAR 再次比去年下降了 5%。奧斯汀的夏季是季節性淡季，因此要彌補實習生收入的損失肯定更困難。如果不包括實習生，RevPAR 將會上漲約 3% 至 4%。

In our other top markets, our coastal hotels in New Hampshire and Maine continue to outperform with RevPAR up 10% in the quarter, driven by 24% growth at our Hilton Garden Inn in Portsmouth and 11% in Exeter. From a leisure standpoint, [Forsabith] certainly reminds us of kind of where Portland was 5 or so years ago. Los Angeles with 3 hotels represents 9% of our EBITDA, and we saw RevPAR grow 7% in the quarter. All 3 L.A. area hotels grew RevPAR in the second quarter. Washington, D.C., which comprises 8% of our EBITDA, we were able to generate meaningful RevPAR growth of 11% in the quarter. Again, all 3 D.C. hotels grew RevPAR. Our Embassy Suites in Springfield saw RevPAR grow 17% as we are finally seeing some return to office and business travel back in the market. As a reminder, in Springfield, TSA moved its headquarters there in the early stages of the pandemic and is just really starting to return to office.

在我們的其他頂級市場，我們在新罕布什爾州和緬因州的沿海酒店繼續表現出色，本季每間客房收入增長了10%，這得益於朴茨茅斯希爾頓花園酒店24% 的增長和埃克塞特希爾頓花園酒店11% 的成長。從休閒的角度來看，[Forsabith] 確實讓我們想起了大約 5 年前的波特蘭。洛杉磯擁有 3 家飯店，占我們 EBITDA 的 9%，本季每間客房營收成長了 7%。洛杉磯地區所有 3 家酒店第二季的 RevPAR 均有所成長。華盛頓特區占我們 EBITDA 的 8%，本季我們的 RevPAR 實現了 11% 的有意義成長。華盛頓特區所有 3 家酒店的 RevPAR 再次實現成長。我們位於斯普林菲爾德的大使館套房飯店的 RevPAR 成長了 17%，因為我們終於看到一些人重返辦公室和商務旅行回到市場。提醒一下，運輸安全管理局 (TSA) 在疫情初期將總部遷至斯普林菲爾德，現在才真正開始恢復辦公室。

Our Residence Inn Foggy Bottom produced RevPAR growth of 8%. And interestingly enough, for the second quarter RevPAR was $212, the highest of all hotels in our portfolio in the quarter. Last of our top markets, the Greater New York and Dallas markets continue to edge higher with both seeing RevPAR growth in the low single digits.

我們的 Foggy Bottom Residence Inn 飯店的 RevPAR 成長了 8%。有趣的是，第二季的 RevPAR 為 212 美元，是本季我們投資組合中所有飯店中最高的。最後一個頂級市場，大紐約和達拉斯市場繼續小幅走高，RevPAR 成長均處於低個位數。

Our 5 highest hotels with absolute RevPAR, where again, top of the list was our Residence Inn Foggy Bottom, which had ADR of $267 in the quarter, followed by our Marina del Rey, Hilton Garden Inn with RevPAR of $202. And then our Residence Inn Fort Lauderdale, Hampton Inn Portland and Residence Inn San Diego Gaslamp, all with RevPAR over $190. A post-pandemic high of 21 of our 36 comparable hotels achieved RevPAR higher than the 2019 second quarter. Additionally, 27 of our 36 comparable hotels or approximately 3/4 of the portfolio achieved ADRs higher than 2019 levels. We continue to see an average length of stay approximately 10% longer than our historical levels. It's come down certainly from pandemic-related stays, but on a long-term basis should remain a bit longer due to the more flexible work arrangements that exist in today's business climate.

我們的 5 家絕對 RevPAR 最高的酒店再次位居榜首，我們的 Residence Inn Foggy Bottom 旅館本季度的平均房價為 267 美元，其次是瑪麗安德爾灣希爾頓花園酒店，其 RevPAR 為 202 美元。然後是我們的勞德代爾堡 Residence Inn 酒店、波特蘭漢普頓酒店和聖地亞哥 Gaslamp Residence Inn 酒店，每間可用客房收入均超過 190 美元。在我們的 36 家可比飯店中，有 21 家的 RevPAR 高於 2019 年第二季度，創疫情後新高。此外，我們 36 家可比飯店中的 27 家（約 3/4 的投資組合）實現了高於 2019 年水準的 ADR。我們發現平均停留時間比歷史水準長約 10%。這肯定是由於與大流行相關的停留時間有所下降，但從長期來看，由於當今商業環境中存在更靈活的工作安排，因此應該會保持更長的時間。

For the quarter, total hotel revenue of $84 million was up 3% to last year. We generated incremental GOP flow-through of approximately 30%. In a challenging operating environment, we were able to maintain margins essentially flat year-over-year, primarily by holding hourly wages flat. This was offset by approximately 150 more hotel employees compared to last year. At this point, we're pretty close to being fully staffed at most of our hotels, and that would represent -- and if we've kind of stabilized at these levels, would represent about a 17% headcount reduction over pre-pandemic levels. If you look at our 5 hotels in Silicon Valley and Seattle, our operating margins were over 51% in the quarter versus 58% last year. Operating margins on that business, very profitable given the less amount of services required.

該季度酒店總收入為 8,400 萬美元，比去年同期增長 3%。我們增加了約 30% 的共和黨流通量。在充滿挑戰的經營環境中，我們能夠保持利潤率同比基本持平，主要是透過保持時薪不變。與去年相比，酒店員工增加了約 150 名，抵消了這一影響。目前，我們的大多數酒店都已接近滿員，這意味著——如果我們穩定在這些水平上，那麼員工人數將比大流行前的水平減少約 17% 。如果你看看我們在矽谷和西雅圖的 5 家飯店，我們本季的營業利潤率超過 51%，而去年為 58%。鑑於所需服務量較少，該業務的營業利潤非常有利可圖。

Our top 5 producers of GOP in the quarter were our GasLink Residence Inn, the sixth straight quarter it's led the portfolio, followed by our Embassy Suites Springfield and then notably, our 2 Sunnyvale hotel and fifth our SpringHill Suites in Savannah. Just missing out was our Residence Inn Bellevue. So despite a huge gap to make up with the loss of the intern business, 3 of our top 6 Goe-producing hotels in the quarter were our tech-driven hotels.

本季GOP 排名前5 的酒店是我們的GasLink Residence Inn 酒店，它連續第六個季度在投資組合中處於領先地位，其次是我們的斯普林菲爾德大使館套房酒店，然後值得注意的是我們的2 桑尼維爾飯店和第五名是我們位於薩凡納的SpringHill Suites 飯店。我們剛剛錯過了貝爾維尤 Residence Inn 酒店。因此，儘管存在巨大的缺口來彌補實習生業務的損失，但在本季 Goe 生產排名前 6 的酒店中，有 3 家是我們的技術驅動型酒店。

With respect to CapEx, we spent approximately $8 million in the quarter and expect to spend about $30 million total in 2023. That includes $22 million of renovation costs at 5 hotels. During the third quarter, we have commenced the renovation of the Courtyard Charleston Summerville, which is expected to be done by the end of the third quarter.

就資本支出而言，我們本季支出約 800 萬美元，預計 2023 年總計支出約 3,000 萬美元。其中包括 5 家飯店的 2,200 萬美元裝修費用。第三季度，我們開始對查爾斯頓薩默維爾萬怡酒店進行翻修，預計將於第三季末完成。

With that, I'll turn it over to Jeremy.

有了這個，我會把它交給傑里米。

Thanks, Dennis. Good morning, everyone. Our Q2 2023 hotel EBITDA was $34.7 million, adjusted EBITDA was $31.9 million, adjusted FFO per share was $0.43 and cash flow before capital was $22 million. While we've seen cost increase due to the reinstatement of certain brand standards and the impact of inflation on a number of key line items, we were able to generate a solid GOP margin of 48.5% and hotel EBITDA margin of 41.3% in Q2, which were only down 60 and 70 basis points, respectively, from our margins in Q2 '22. Our balance sheet remains in excellent condition, and we are continuing to execute on our plan to address debt maturities.

謝謝，丹尼斯。大家，早安。我們 2023 年第二季的飯店 EBITDA 為 3,470 萬美元，調整後 EBITDA 為 3,190 萬美元，調整後每股 FFO 為 0.43 美元，資本前現金流量為 2,200 萬美元。雖然我們看到由於恢復某些品牌標準以及通貨膨脹對一些關鍵項目的影響而導致成本增加，但我們在第二季度實現了 48.5% 的穩定 GOP 利潤率和 41.3% 的酒店 EBITDA 利潤率，與2022年第二季相比，我們的利潤率僅分別下降了60 和70 個基點。我們的資產負債表仍然狀況良好，我們正在繼續執行解決債務到期問題的計劃。

As of June 30, Chatham's net debt to LTM EBITDA was 4.1x, which is significantly lower than our pre-pandemic leverage, which is generally in the 5.5 to 6x area, despite the fact that EBITDA is not fully recovered to pre-pandemic levels. In Q2, we used the final $15 million of availability under our delayed draw term loan to repay the maturing loan on the Courtyard Houston. And subsequent to the end of Q2, we repaid the $19.7 million loan on the Hyatt Place Pittsburgh with available cash. Year-to-date through July, we have refinanced or repaid $109 million of debt which leaves us with only $40 million of remaining debt maturing in 2023. We expect to access the CMBS market over the course of Q3 to raise approximately $50 million to $100 million of proceeds, which would address our $40 million of remaining 2023 maturities and a portion of our 2024 maturities. The cost of this financing is likely to be in the mid-7% area. We expect the total proceeds from our planned Q3 financing activity together with our undrawn $260 million revolving credit facility will provide enough liquidity to cover all of our 2024 debt maturities.

截至6 月30 日，Chatham 對LTM EBITDA 的淨債務為4.1 倍，這明顯低於我們在疫情爆發前的槓桿率，而我們的槓桿率通常在5.5 至6 倍之間，儘管EBITDA 尚未完全恢復至疫情前的水平。在第二季度，我們使用了延遲提取定期貸款中最後 1500 萬美元的可用資金來償還休斯頓萬怡酒店的到期貸款。第二季末後，我們用可用現金償還了匹茲堡凱悅嘉軒酒店 1,970 萬美元的貸款。年初至今，截至7 月，我們已再融資或償還了1.09 億美元的債務，這使得我們在2023 年到期的剩餘債務只剩下4000 萬美元。我們預計在第三季度進入CMBS 市場，籌集約5,000 萬至100 美元的資金百萬美元的收益，這將解決我們 2023 年剩餘期限的 4,000 萬美元和 2024 年到期的一部分。此次融資的成本可能在 7% 左右。我們預計，計劃的第三季融資活動的總收益加上未提取的 2.6 億美元循環信貸額度將提供足夠的流動性來支付我們 2024 年的所有債務到期。

While we're not going to provide guidance at this point, I would like to provide some color around how one could think about potential performance in Q3. Quarter-over-quarter comparisons have been pretty noisy over the last few years on both revenue and expenses due to the pandemic and the recovery from it as well as different demand driver staffing levels, franchisor requirements and volatile utility pricing. If you look back to both 2018 and 2019, in each of those years, our Q3 RevPAR was approximately $3 higher than our Q2 RevPAR. So that may provide some general context for how to think about what we might expect for Q3 RevPAR versus our Q2 RevPAR of $144.

雖然我們目前不打算提供指導，但我想就如何看待第三季的潛在表現提供一些說明。由於大流行及其復甦以及不同的需求驅動人員配置水平、特許人要求和波動的公用事業定價，過去幾年中收入和支出的季度環比都相當嘈雜。如果您回顧 2018 年和 2019 年，每年第三季的 RevPAR 都比第二季的 RevPAR 高出約 3 美元。因此，這可能為我們如何考慮第三季 RevPAR 與第二季 144 美元的 RevPAR 的預期提供了一些一般背景。

On the expense side, with the loss of the interns in Silicon Valley, Seattle and Austin, for 2/3 of the quarter, third quarter margins will be pressured as we benefited from higher RevPAR and minimal housekeeping requirements for that business in Q3 '22. Additionally, incremental head count year-over-year to fully staff our hotels going into the summer will impact Q3 more than Q2. In Q3, interest expense, net of interest income is also likely to increase by about $500,000 versus Q2 due to both our planned financing activity and the impact of increasing SOFR on our term loan interest expense. Although the exact amount of any increase in interest expense will depend on the ultimate amount of financing we complete, rates at the time of execution and transaction timing.

在費用方面，由於矽谷、西雅圖和奧斯汀的實習生流失了本季2/3 的時間，第三季的利潤率將受到壓力，因為我們受益於22 年第三季該業務更高的RevPAR 和最低的內務要求。此外，進入夏季，我們飯店的員工人數逐年增加，對第三季的影響將大於第二季。由於我們計劃的融資活動以及 SOFR 增加對定期貸款利息支出的影響，第三季的利息支出（扣除利息收入）也可能比第二季增加約 50 萬美元。儘管利息費用增加的確切金額將取決於我們完成的最終融資金額、執行時的利率和交易時間。

This concludes my portion of the call. Operator, please open the line for questions.

我的電話部分到此結束。接線員，請開通提問線。

(Operator Instructions) Our first question is from Aryeh Klein with BMO.

（操作員說明）我們的第一個問題來自 BMO 的 Aryeh Klein。

On the expense side, it looks like hourly wages were flat year-over-year with solid [positive]. Can you just talk about the sustainability of that? Or how you're expecting that maybe to grow moving forward as, I guess, headcount overall maybe is -- it sounds like you're almost fully staffed there?

在費用方面，小時工資似乎與去年同期持平，並且穩定[積極]。您能談談這個的可持續性嗎？或者你預計這可能會如何發展，我猜，整體員工人數可能是這樣的——聽起來你那裡的員工幾乎已經滿了？

Aryeh, this is Dennis. Yes. I mean, I think, listen, certainly, the wage pressures of the last several years have come down and I think you're probably hearing that in a lot of people, just from an hourly wage perspective. It's still a tight labor market, but I think even going back to last summer, as occupancy levels ramped up, we were -- because we run a higher occupancy, we were able to retain as many people as possible and provide them full schedule. So that certainly helped in terms of stabilizing the workforce and yes, we feel pretty good there. I mean, listen, there's certainly going to be inflation increases on wages, but we've absorbed over a 25% increase in the last 3-plus years. So it's expected as the labor pool continues to come back to work that -- hopefully, the significant increases moderate here.

阿耶，這是丹尼斯。是的。我的意思是，我想，聽著，當然，過去幾年的工資壓力已經下降，我想你可能從很多人那裡聽到了這一點，只是從小時工資的角度來看。勞動力市場仍然緊張，但我認為即使回到去年夏天，隨著入住率的上升，我們——因為我們的入住率更高，我們能夠留住盡可能多的人，並為他們提供完整的時間表。因此，這無疑有助於穩定勞動力，是的，我們感覺非常好。我的意思是，聽著，薪資肯定會因通貨膨脹而上漲，但在過去三年多的時間裡，我們已經吸收了超過 25% 的漲幅。因此，預計隨著勞動力資源繼續恢復工作，希望這裡的顯著成長會放緩。

And then, Jeremy, just maybe on the balance sheet. You mentioned tapping the CMBS market later this year, which will address the maturities in a portion next year. But there's still a significant amount out there for next year. How should we think about the timing of addressing some of those?

然後，傑里米，也許只是在資產負債表上。您提到今年稍後將進軍 CMBS 市場，這將在明年解決部分到期問題。但明年仍有大量資金可用。我們應該如何考慮解決其中一些問題的時機？

Yes. I think after we do what we're planning on doing in the balance of this year, sort of all the remaining maturities will be backstopped by the revolving credit facility. So I think we'll probably -- there's no kind of gun to our head to take out the rest of it and replace 4.5% money with 7.5% money right away. So I think we'll probably be Q1-ish next year before we start doing more CMBS and hopefully, rates are lower by then. But in any case, don't want to pay the higher rate sooner than we need to on that.

是的。我認為，在我們完成今年剩餘時間的計劃後，所有剩餘期限都將得到循環信貸安排的支持。所以我認為我們可能會——沒有什麼槍指著我們的頭來取出剩下的部分，並立即用 7.5% 的錢取代 4.5% 的錢。所以我認為我們可能會在明年第一季左右開始做更多的 CMBS，希望那時利率會更低。但無論如何，我們不想比我們需要的更早支付更高的利率。

Got it. And last one, just on Silicon Valley. I think you made up about 63% of loss intern business in the quarter. Jeff, you talked about some of the positive check trends you're seeing. Do you think that number goes higher in the third quarter? And then I think you also mentioned expecting the intern business to come back next year. Is that based on conversations you've had with some of the companies? Or how are you thinking about that?

知道了。最後一篇是關於矽谷的。我認為本季實習生業務的損失中大約有 63% 是由你們承擔的。傑夫，您談到了您所看到的一些積極的檢查趨勢。您認為第三季這個數字會更高嗎？然後我想你也提到了希望明年實習生業務能夠回來。這是基於您與某些公司的對話嗎？還是你怎麼想的？

Yes. I mean, this is Dennis. I'll answer and Jeff can chime in. I think the 63% replacement will be in the range of that, whether it's 60% or 65%, I can't say. But certainly, we're pleased with basis coming right in the middle of that 50% to 75% range that we provided last quarter. So that's all a good sign. I think with respect to intern programs, there are intern programs happening this year. It's just significantly down from prior years. So -- and it's able to be absorbed by other housing or especially in the Seattle and Sunnyvale market. So any discussions we've had, there's been nothing concrete for next year, but the -- we've owned these hotels for a long time and the intern business has been part of that. And we know they're going to come back. It's just a matter of the magnitude of it.

是的。我是說，這是丹尼斯。我會回答，傑夫可以插話。我認為 63% 的替代率將在這個範圍內，無論是 60% 還是 65%，我不能說。但當然，我們對上季提供的 50% 至 75% 範圍的中間值感到滿意。所以這都是一個好兆頭。我認為關於實習生計劃，今年有實習生計劃。只是與往年相比顯著下降。因此，它能夠被其他住房吸收，特別是在西雅圖和桑尼維爾市場。因此，我們進行的任何討論都沒有關於明年的具體內容，但是我們已經擁有這些酒店很長時間了，實習生業務也是其中的一部分。我們知道他們會回來的。這只是其大小的問題。

The next question is from Anthony Powell with Barclays.

下一個問題來自巴克萊銀行的安東尼·鮑威爾。

I guess another question on the intern business. I was surprised about Austin being a big contributor there. I mean I should have expected that. But -- what percent of total EBITDA on an annual basis or total revenues comes from the intern business on a stabilized basis? Just want to understand the magnitude of the business throughout the portfolio.

我猜還有一個關於實習生業務的問題。我對奧斯汀成為那裡的重要貢獻者感到驚訝。我的意思是我應該預料到這一點。但是，每年 EBITDA 總額或總收入的百分之多少來自穩定的實習生業務？只是想了解整個投資組合中業務的規模。

If you go back to pre-pandemic levels, Anthony, total intern EBITDA was around, I guess, total internal revenue -- sorry, was around $6 million for the 5 hotels, not including Austin. So EBITDA at kind of a 60% margin was around $3.5 million. You add another couple of millions of -- or about $1 million of revenue, sorry, for Austin. So $7 million of revenue on $300 million pre-pandemic, was kind of the order of magnitude and where, I think, on a stabilized basis, we would want to play as opposed to taking almost $12 million of it last year.

如果你回到大流行前的水平，安東尼，我猜實習生 EBITDA 總額約為內部總收入 - 抱歉，這 5 家酒店的總內部收入約為 600 萬美元，不包括奧斯汀。因此，利潤率為 60% 的 EBITDA 約為 350 萬美元。抱歉，您還為奧斯汀添加了幾百萬美元或大約 ​​100 萬美元的收入。因此，疫情大流行前 3 億美元的收入為 700 萬美元，這是一個數量級，我認為，在穩定的基礎上，我們希望發揮作用，而不是去年獲得近 1200 萬美元。

Got it. Understood. Okay. And just going to acquisitions. I think you talked about maybe doing some deals in the back half of this year, early next year. Your cost of debt is about 7%. It seems like on your line -- closer to down on your line and 7.5% on CMBS. Are you seeing yields on acquisitions that are above that? I'm just curious how you're underwriting the cash on cash when you account for cost of capital and doing acquisitions?

知道了。明白了。好的。並且只是進行收購。我想你談到可能會在今年下半年、明年初進行一些交易。您的債務成本約為 7%。看起來像是在你的線上 - 接近你的線下方，並且 CMBS 上有 7.5%。您看到的收購收益率是否高於此水準？我只是好奇當你考慮資本成本和進行收購時，你是如何承保現金現金的？

Yes. Anthony, look, there's very few deals being done, as you know, and expectations have certainly changed a little bit on the part of sellers. We're working on one thing now that certainly has a yield in excess of 7%. It's in excess of 8%. But they're far and few between and some of that yield frankly, comes from our ability to just manage better and complex positions in a cluster of other hotels that we've got in the neighborhood. So it's kind of that special opportunity that we're able to use Island Hospitality for to really maximize the cash flow and the return. But as Dennis said and as I said, we're looking at cost of capital. Don't worry. And we're certainly not interested in doing anything that's not at least marginally accretive. And that may come from recycling of capital, from the sale of a hotel and simply matching -- almost matching the funds on an acquisition with an in-place return that is in excess of 8%.

是的。安東尼，你看，正如你所知，成交的交易很少，而且賣家的期望肯定發生了一些變化。我們現在正在做一件事，收益率肯定超過 7%。已經超過8%了。但它們之間相差甚遠，坦白說，其中一些收益來自於我們在附近的其他酒店群中管理更好和更複雜位置的能力。因此，這是一個特殊的機會，我們可以利用 Island Hospitality 來真正最大化現金流和回報。但正如丹尼斯和我所說，我們正在考慮資本成本。不用擔心。我們當然對做任何不能至少帶來邊際增值的事情不感興趣。這可能來自於資本的回收、酒店的出售和簡單的匹配——幾乎匹配收購的資金，並獲得超過 8% 的就地回報。

Got it. Maybe one more on Los Angeles. Any impact of the rider strike and the actor strike that you've seen in recent weeks?

知道了。也許還有一個關於洛杉磯的。最近幾週你看到騎手罷工和演員罷工有什麼影響嗎？

Yes. We haven't really seen any real material impact, Anthony.

是的。安東尼，我們還沒有真正看到任何真正的物質影響。

We're in the valley, so a little bit on the edge there and hotel has been performing very strong.

我們在山谷裡，所以有點邊緣，酒店的表現非常強勁。

I think the only thing I'd say -- I would add to that, Anthony, is Marina del Rey, one of our largest pieces of business there is airline FedEx related as opposed to entertainment related. So that business continues.

我想我唯一要說的是——安東尼，我想補充一點，是瑪麗安德爾灣，我們在那裡最大的業務之一是與聯邦快遞航空公司相關，而不是與娛樂相關。這樣生意就能繼續下去。

(Operator Instructions) The next question is from Tyler Batory with Oppenheimer.

（操作員說明）下一個問題來自泰勒·巴托（Tyler Batory）和奧本海默（Oppenheimer）。

I just want to unpack some of your commentary a little bit more here. When we look at RevPAR on a year-over-year basis, looks like a deceleration in June and into July. And I know the intern business is impacting that. If you kind of x that out, just talk a little bit more about performance in the portfolio. And maybe it's helpful, I don't know if you can kind of quantify just how much of a drag this lost intern business is going to be on Q3 RevPAR overall?

我只是想在這裡稍微解釋一下你的一些評論。當我們逐年查看每間可用客房收入時，我們會發現 6 月到 7 月期間出現了減速。我知道實習生業務正在影響這一點。如果你想解決這個問題，請多談談投資組合的表現。也許這會有所幫助，我不知道您是否可以量化這一損失的實習生業務將對第三季整體 RevPAR 產生多大的拖累？

Yes. I'll start and if anyone wants to add, but yes, Tyler, this is Dennis. I mean generally, those 5 hotels are impacting our RevPAR by about 700 basis points. So it's a significant impact. I think it will be a little more difficult in the third quarter to replace that lost business, just given kind of the amount that we took last year. But having said that, like I said, 63% recovery at least through June. So all in all, I think it's pretty noteworthy to be able to be where we are as a portfolio.

是的。我先開始，如果有人想補充的話，是的，泰勒，我是丹尼斯。我的意思是，總的來說，這 5 家酒店對我們的 RevPAR 造成了大約 700 個基點的影響。所以這是一個重大的影響。我認為，考慮到我們去年的業務量，第三季要彌補失去的業務會更加困難。但話雖如此，就像我說的，至少到 6 月為止，恢復率達到 63%。總而言之，我認為能夠成為我們的投資組合是非常值得注意的。

Okay. And some of the leisure numbers that you provided, some of your peers talking about step business slowing a little bit more, some issues in terms of you not being -- [not high] as much pricing power. Just talk a little bit more about what you're seeing in some of your leisure markets, Jeff, I think the commentary on some of the weekend ADRs seem pretty optimistic there.

好的。你提供的一些休閒數據，你的一些同行談論階梯業務進一步放緩，一些問題是你沒有——[不高]那麼多的定價能力。傑夫，請多談談您在一些休閒市場中看到的情況，我認為對一些週末 ADR 的評論似乎相當樂觀。

Yes. I mean I think in Jeff's prepared comments, he talked about -- I think he listed out separately each of our -- what we would kind of characterize as primarily leisure markets with the only one that was enough was Portland. And quite honestly, we left some money on the table there. So it really would have been. But the other ones, including even Destin, Florida, up 8%; Fort Lauderdale, up 14%. I think is noteworthy given, I think, what you've seen probably from some of the other REITs that have already reported with pretty significant RevPAR decline. So I think again just kind of a testament to the -- not only the locations but also just the assets are in slightly different markets compared to some of those white hot markets previously.

是的。我的意思是，我認為在傑夫準備好的評論中，他談到了——我想他單獨列出了我們的每一個——我們將其描述為主要的休閒市場，唯一足夠的就是波特蘭。老實說，我們在那裡留下了一些錢。確實如此。但其他城市，甚至包括佛羅裡達州德斯坦，也上漲了 8%；勞德代爾堡上漲 14%。我認為值得注意的是，我認為，您可能從其他一些房地產投資信託基金中看到的情況，這些房地產投資信託基金已經報告了可售房平均收入顯著下降。因此，我認為這再次證明了與之前的一些白熱市場相比，不僅是地點，而且資產所在的市場也略有不同。

Yes. I mean, and you look at, look, another advertisement, frankly, for being in the select-service business. It's just -- these are not resort 4- and 5-star or even 3-star resorts that are fly to markets. These locations were specifically handpicked for what they are. And these kind of numbers prove it out, especially in a general leisure pullback, certainly compared to 2022, that some of the other full service hotel REITs are probably not a report or already have reported. So we are definitely pleased with the resiliency of the model and the cash flow that we get on these hotels.

是的。我的意思是，坦白說，你看，看，另一則廣告，涉及精選服務業務。只是——這些不是飛往市場的四星級和五星級度假村，甚至不是三星度假村。這些地點都是根據它們的具體情況專門精心挑選的。這些數字證明了這一點，特別是在整體休閒回調的情況下，當然與 2022 年相比，其他一些全方位服務酒店房地產投資信託基金可能還沒有報告或已經報告過。因此，我們對模型的彈性和我們從這些酒店獲得的現金流絕對感到滿意。

Okay. Okay. That's helpful. And then in terms of business travel, I mean if we exclude the Silicon Valley hotels, some of your peers have talked about corporate travel, that recovery kind of maybe being a little bit more -- a little more slow. I mean, kind of what are you seeing? What's your opinion on the future trajectory in terms of business travel?

好的。好的。這很有幫助。然後就商務旅行而言，我的意思是，如果我們排除矽谷酒店，你們的一些同行已經談到了商務旅行，那麼復甦可能會更慢一些。我的意思是，你看到了什麼？您對商務旅行的未來發展趨勢有何看法？

I mean, listen, I think our weekday occupancies in the second quarter, even including Silicon Valley as a portfolio our weekday occupancies were 76%, 77% for the entire portfolio, which fairly comparable to weekend occupancies for the quarter. So I think in terms of our markets and our customers, it's been pretty stable. So -- and it continues to edge higher. So I think for us and for our markets that we're in, that continuing -- it used to be a year ago that Monday, Tuesday, Wednesday, were the lowest RevPAR nights of the week. And for our portfolio, they're now becoming our highest RevPAR nights of the week. So I think for our general overall portfolio and even including Silicon Valley, that occupancy -- underlying occupancy strength is and continued growth even if it's from 75% to 78% or 78% to 80% is encouraging.

我的意思是，聽著，我認為我們第二季度的工作日入住率，即使包括矽谷作為一個投資組合，我們的工作日入住率為76％，整個投資組合為77％，這與本季度的週末入住率相當。所以我認為就我們的市場和客戶而言，它非常穩定。所以——它繼續走高。因此，我認為對於我們以及我們所處的市場而言，這種情況仍在持續——一年前，週一、週二、週三是一周中 RevPAR 最低的夜晚。對於我們的投資組合來說，它們現在正在成為我們一周中 RevPAR 最高的夜晚。因此，我認為對於我們整體的整體投資組合，甚至包括矽谷來說，入住率——潛在的入住率強度以及持續增長，即使是從75% 到78% 或78% 到80%，也是令人鼓舞的。

This concludes our question-and-answer session. I would like to turn the conference back over to Jeff Fisher for any closing remarks.

我們的問答環節到此結束。我想將會議轉回傑夫費雪發表閉幕詞。

Well, again, thank you all for being on the call. We've kind of set the table a little bit for Q3 that perhaps certainly won't be as good as last year. That does not indicate any kind of go-forward trend at all other than what we focused on relative to that specific business. And as we move out of that quarter and especially into next year, as I commented, we really do see some pretty substantial upside here and growth in earnings. So appreciate that, and we'll look forward to talking to you again soon.

好吧，再次感謝大家的接聽電話。我們已經為第三季做好了一些準備，但可能肯定不會像去年那麼好。除了我們關注的特定業務之外，這根本不會顯示任何類型的前進趨勢。正如我所說，當我們走出該季度，尤其是進入明年時，我們確實看到了一些相當大的上漲空間和收益成長。非常感謝，我們期待很快再次與您交談。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。