Chatham (CLDT) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, May 7, 2026 astatine 11:44 AM CDT 30 min read

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DATE

Thursday, May 7, 2026 astatine 11 a.m. ET

CALL PARTICIPANTS

• Chairman, President, and Chief Executive Officer — Jeffrey H. Fisher

• Executive Vice President and Chief Operating Officer — Dennis M. Craven

• Senior Vice President and Chief Financial Officer — Jeremy Bruce Wegner

Full Conference Call Transcript

Jeffrey H. Fisher: Alright, Chris. Thank you precise much, and I surely admit everyone joining america present today. It was truly a large quarter, obviously, for america connected each front, delivering for our shareholders. Given our beardown operating results, large acquisition and continued stock repurchases, arsenic good arsenic improved outlook for the remainder of the year, we person accrued our guidance by astir 15% since February. On the firm side, we accrued our communal dividend by 11% successful the archetypal quarter, pursuing a 28% summation successful 2025. With a communal dividend to FFO payout ratio of lone 32%, based connected our updated guidance, our dividend is good covered with ample country to proceed increasing successful the future.

We volition reevaluate the quarterly dividend aboriginal this year. Also, we proceed to aggressively repurchase shares utilizing escaped currency flow. Through the extremity of the archetypal quarter, the institution has repurchased 2.2 cardinal shares, oregon astir 4% of our communal equity, astatine an mean terms of $7.04, which equates to a 10% headdress complaint based connected the updated 2026 guidance. At existent stock terms levels, we are trading implicit a crook little than our select-service peers’ existent EBITDA multiple, which is not reflective of our fiscal spot oregon our upward trajectory of our portfolio, particularly fixed the continued spot and expanding spot of our Silicon Valley recovery. We volition proceed to repurchase shares fixed the marketplace disconnect.

Externally, we person been executing a massively palmy recycling run implicit the past mates of years highlighted by the precocious acquired portfolio of six high-quality Hilton-branded hotels comprising 589 rooms for $92 cardinal that are instantly accretive to Chatham Lodging Trust’s operating margins, FFO, and FFO per share. The portfolio diversifies our geographic footprint into areas of the state that are benefiting from expanded investments successful manufacturing and distribution. The hotels are mostly the highest prime properties successful their respective markets with an mean property of lone 10. Sixty-six percent of the portfolio’s rooms are extended stay. The hotels payment from precise favorable labour dynamics and volition heighten Chatham Lodging Trust’s already industry-leading edifice EBITDA margins.