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CLDT Chatham Lodging Trust

Participants
Chris Daly IR
Jeff Fisher Chairman, President and CEO
Dennis Craven EVP and COO
Jeremy Wegner SVP and CFO
Ari Klein BMO Capital Mar
Bryan Maher B Riley Secu
Tyler Batory Janney Capital Markets
Anthony Powell Barclays
Call transcript
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Operator

Greetings and welcome to the Chatham Lodging Trust Third Quarter 2020 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I’d now like to turn this conference over to your host, Mr. DG of President Daly, Public Relations. Chris you you, may begin. Thank

Chris Daly

comments everyone to XX-K XXXX unknown, as of described the Thank of conference you, are Lodging defined this and and welcome to XX, most in Form other in noted morning, as company’s Good our recent All update many laws. any that otherwise undertakes call quarter Laura. filings. unless by conform forward-looking is Chatham federal company statements results forward-looking These actual known and expectations. in no October Trust or risks to Please to and SEC XXXX note as are the both securities today information the to considered call. our statements and statements results statement subject third changes the obligation uncertainties,

our earnings on measures find filings chathamlodgingtrust.com. on can which You call, financial this SEC of non-GAAP reconciliations referenced contain copies at to website and release, our

with Chatham’s Dennis Craven, provide Jeff Chief and Vice Officer; Executive to President. me Wegner, XXXX Chief Jeremy Fisher, Vice Chairman, insights President introduce and allow results, you Operating Executive and to Now, Senior quarter President third some Officer; into

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

Jeff Fisher

everyone. Thanks, Chris. Good morning,

time. has the industry during the our destructive foremost, most unprecedented. sincerely difficult with events you Chatham one to COVID-XX work considered on The economy all and impact current global during interest these times. the very and lodging is our your extraordinary in and the done and appreciate history national in First thank for we unusual its team participation been your pandemic this of pleased and I'm But results things has

can improve of October. beginning to corporate in our traveler quarter it did in August, and RevPAR $XX to quite the above during The ADR remained $XX Since September our June of trend and from gradually we attributable in and to declined approximately in hovered ADRs. in of the the beginning be summer. $XX. well in to limited saw leisure second $XX improving around RevPAR travel, July $XX with and summer the Since but came quarter who out summer For XX% our more force the the our our XX% is of around remains has occupancy line rates portfolio overall We the $XXX. return some see August it RevPAR

performance Although, in performance. September been October to others decline and we've able maintain our saw operating

Chatham unprecedented the and that lodging our RevPAR this RevPAR the period second said I'm I of and asset proud will the focus I'm third our teams As at intense and operating both very efforts hospitality. in top. required of Island quarter be near confident We and management of RETS the all had absolute quarter has highest

a $XX deliver the quarter in of that in say pretty sales we great despite never kind of of outperformance GOP XX% third the as occupancy approximately both combination saw that quarter of as versus to Additionally, which of efforts margins $XXX our remarkable XX% comparable decline when delivered thought attributable of the well of certainly portfolio. our peers ADR our industry overall margin. relative believe is I which composition a versus a certainly an almost period projections pandemic we beginning the the at have last is doing and the to year, we of could RevPAR I our

since delivered onset proven the sales as the revenue or gains. market teams pandemic RevPAR our significant management outstanding Our share results of and have by index

week our first index XXX. Since Our April higher. index been was of has RevPAR XXXX significantly the RevPAR

and still our XXX, a most now impressive The average Our second given hotels and as said XX% statistic third local that XXXX quarter impressive quarter at race. we're have demand regional Island's higher XXX was outstanding modifying index gains by as the revenue than driven efforts very as was well hotels being to are sales sales and adjusting that reopened. concentrated ensuring its teams our national, quickly we and prior index direct our from management efforts

with EBITDA platform able necessary our on of basically beneficial of to and been highest sales significant as favorable increased that of to benefits period meetings to is stay REITs lodging REIT. winning higher of been that from nursing Chatham being military arena portfolio suites We've large the really of are basis run housing, the we've Homewood characteristics, sales from today's the we benefits if respect discuss government and and in in kitchens during are hear senior focused has about and is in participate owners, the our approximately Suites a highest which business almost XX% With Inn pandemic. the double the our this Island hotels, groups, and housing having talked larger We've during student with Residence and upscale of has extended time. stay developments. in business all two-thirds demand of our opportunities times recent travelers. have many revenue One extended leaders of full at rooms our daily attributable next percentage lodging

than rooms are characterized public of Chatham's as among percentage XX% limited REITs. lodging the highest more service Additionally, rooms

periods our select maximize during Our base the diversify in to us well hotels growth limited exactly hotels flexibility reflected operating to has and what weakness results. upscale service that's and extended our and stay of that's been as doing our customer or team revenue our as provide

in the quarter. quarter Some second interesting third portfolio from our the trends into continued

for around brands Residence of has length are accustomed X.X what Homewood of average remains we nights than to higher years, and Suites. prior largest Inn first Our two In stay experiencing. length our stay hovered average

length was up Inns. Homewoods Homewoods for our our year. In length year stay X.X X.X average almost third five was X.X of nights nights Inns Second and versus for our to for versus Residence average last of X.X quarter our five for XXXX quarter nights the and Residence last nights stay

portfolio contributions third was during with XX% the the weekends of to ADR for of the for Second as have an leisure remainder well. historically the is the kind the what $XXX; a that's at generally and as traveler been amazing industry XX% these to which an $XXX but occupancy on such Friday, of occupancy traveler pandemic. seeing is of favor reliant the of daily quarter corporate results ADR demand that the while week ours throughout truly trends Saturday continue has

RevPAR months. few down Looking dollars. naturally some portfolio as do fourth of the three seasonality our you October November quarter experience release, performance December we in into the saw will our course a to line last generally and with tick and in In RevPAR expect is

vaccine I will firmly believe back and business our customer available. expect XXXX, to ability is introduced that into further cash This us much portfolio our faster we meaningfully and Looking into higher and really a to that our come and will and appeal allow I've that REITs be company return our most about to travel occupancy our diverse revenue attributes of talked base sooner. the will than lodging once translate peers grow flow able XXXX levels to for and for shareholders. to

far on Housing a price a couple after mature make in San meaningful does I $XXX,XXX or to almost a our pending Diego a turn allows about over sale pay to transaction San years. I only and XXXX development equates Diego Valley a in that's room. The million per Residence very of that it room loan recent to to certainly rate set is distressed which Before Dennis, sense X.X% of was Commission this significant Inn us transaction Mission and the off Not in cap want XXX liquidity talk and from the the results $XX for from a financial attractive perspective, all, adds price. to CMBS to

significantly down reinvest proceeds run the So this added deal road. strengthens distressed acquisitions us for Diego. sheet city our times during provides these of It's liquidity a and to flexibility for into and balance San potentially the these uncertain home

were for focused managing pleased the the thank very very our quarter want We expenses and our departments were in efforts. across deliver our operating EBITDA to and impressive employees of country margins quarter. positive remain we Lastly, adjusted to with labor. across their third again hyper on I'm third efforts especially all able XX%

haven't be breakeven, per $X.X reach RevPAR achieve been real flow $XX, significantly breakeven, monthly we're flow reduced and we approximately our cash we we To to still estimate Although, million of we're cash not away. too we've approximately but to need able month. cash to close burn far

in sale our Our pending approximately if of use factor you you the as third Valley Hotel a is liquidity XX quarter cash our runway especially Mission months, if burn basis.

think value I along a a impact model shareholders. equity for long-term balance operating on meaningful efficient Our our sheet strengthened has with our

to persevere over teams company have how through Chatham public With Island that to the like through lead these I'd times. challenging these and Our and it experience lodging a know at Dennis. turn we to to situations

Dennis Craven

highest business both quarter. couple XX% still which $XX of is in opening as New the had other encouraging third quarter. third relaxed limited. including $XXX ran once RevPAR and benefited of occupancy XX% and with Two XXX travel was slow and July $XX Angels. key XX% the and bucks. of group the gain quarter our hotels that with quarter second of Northeastern to did leisure in CDC see Coastal RevPAR LA was from no as second our September, as best San our business Thanks hotels XX% travel July. is hotels that about from in met the Hotel three XX groups and both had California as metric July over compares due the and occupancy on six third occupancy two had was quarter as the XX of the XX% Jeff obviously within quarter got of the traveler portfolio. we compares of local restrictions Southern approximately the the Anaheim Diego tech saw related the under restrictions, of XX We was market which over that hotels towards our the from benefited mentioned comprised Los three XX some during to hotels hotels three all which companies Jeff. our some occupancy Despite strength It from quarter. markets, large Valley only during well through to of markets and the military in other the of markets from Silicon only ship approximately was of second of California performing hotels third which quarter. government health quarter. our a able second San opposed Diego of in to Angeles, occupancy quite in our hotels Hampshire end Maine in occupancy nursing corporate Among top the until in Apple business We market but of corporate RevPAR a rates

had occupancy quarter that markets XX% Somerville standout Mountain performing are as two as Charleston hotels for Fort in our our other the Lauderdale of well Farmington. Inn hotels where Some and us, Residents Hultsville View in

as approximately our at production last production about year, points revenue is of corporate XX%. segmentation XX% is our XXX down a to overall revenue to revenue of from percentage XX% Looking compared corporate segment off year last basis

basis XX% have best compared accounts and down Our levels makes it only are major our side a of about for are on versus minimize our year expense queued retail three basis margin very last our increased. XXX down and year-over-year basis, revenue our and cost points we increased On Operationally about only the is relative revenue but still the to RevPAR a maximize our been of XX% and business on performing XXXX. segments segment XX% depressed about production lowest up in of government has to XX% creep for production. slowly while at

by March have dollar expense closely that door. the X,XXX operating going side, time biggest comprising total of the their hotel On employee XXX% of we of though and hotel have approximately hotel occupancy investing XX, the as approximately we of our day-to-day revenue a regional is quarter. daily are our expenses basis. of touch in and manager September has efficiency that testament is we've managing the looking On employee fact about the XX% by count in a increased We're XXX materially. count stand every team we level X, our that's employees. substantially with XX to XX, quarter of out employees The at GM our current XXX employees over June Even also April had model. not examining Every past our head on was lows increased P&Ls. of At about hotel the employees expenses commitment our our and analysts in Labor Island a only every far is at employment our almost employees. increased off

into Looking and our costs, to per year cost on down you grow hours. XX% look labor of down some labor we departments hybrid rooms department, room occupied labor rolled is $XX. anticipate don't was preoccupied our social when third cost over across our at local little have to all and overall $XX evening we and XX% Depending approximately about quarter a approximately guidelines last compared commencing or the grab health breakfast out occupancy and room offerings any

structure about guest XX%. labor As our from meaningfully be and room $X.XX, removed fixed our come costs have to preoccupied some over from basis the per down on a complimentary room costs costs our $X to XX% result and experience. significantly departments little our are operations decreased a that There a decrease occupied of quarter operating in a cannot without which is a impacting

$XXX,XXX on approximately are repairs occupied cost XXX per in down about on or room costs $X.XX basis per and XXX XX% the lastly Our maintenance a slightly our to down G&A room room. room. from per occupied occupied and a a quarter, preoccupied are are but about operating XX% basis, And expenses up again

the quarters. pay XX% addition level, basis. been burn approximately outflows board across corporate third a we've cuts instituted salary we've a operating at corporate in In the and to In during we head these over on expense reduce count and difficult by our We means cost total, our management structure unfortunately cash times a monthly as adjusting at reduced had aggressive XX%. cash still of level hotel minimizing we're since by position in to costs very second the

York. front on Resident the New renovations CapEx development third of Residence the including Center the in the quarter the approximately million Inn we remainder Inn spent at $X million New our on the in On and Warner Anaheim Rochelle $X majority spent with

on Center quarter remaining We expect our CapEx than to is million other fourth spend $X.X all which the about quickly. in along development Warner moving

new macro decline and supply quarter Travel Smith reported in X% that down a front, on the Lastly X.X% year-to-date. continues to

we to approach considerably With to industry X% seven In the quarters supply to an shrink in after the on as sit financial it the impact to going much the we over of worse. years here expect that issue in took since addition new crisis hotel to I'm it the be and the pandemic, or is obviously closings, going to for turn new the pipeline eight supply midst coming it's Jeremy. to hard being construction imagine and almost

Jeremy Wegner

our Thanks from contain Dennis. which Chatham's XXXX. EBITDA able really everyone. amazing and XX%, a our was Good RevPAR down generate RevPAR morning QX were margin $XX $XX for it $XX. cost, QX our GOP XXXX reflects which efforts to a Through in increase was where XX% RevPAR the we of significant to from of hotel of pretty margin XX.X% was since is QX, QX XX% quarter

September In our principal X.X versus pandemic. September, Our million the We dollars whether Chatham's cash versus restricted expense and QX, monthly burn cash In being QX with G&A after When used to negative which minus reduced covenant caused an ended us RevPAR through was $X.X taxes that facility $X.X the and capacity on unrestricted availability. million XX, of of annualized to be At sheet monthly liquidity starting $X.X to XXXX, XXXX amendment in between the of burn. in amortization significantly credit flow early had cash balance approximately of a well and $XX.X revolving NOI before EBITDA less an million to of month corporate capital In cash us $XX.X and escrowed million provides be was the Chatham's by strong QX, XXXX has million CMBS represents the of million interest again capital that million figures calculated in EBITDA million May, performance until our Chatham's for that will $XXX QX with only and in $XXX at that $X.X completed of before principal capital. COVID-XX only cash insurance. can the approximately positions facility facility. expenditures, used amortization. basis operating and cash unrestricted hotel our begin of our $XXX,XXX we servicers be EBITDA XXXX. entire ability and was disruption balance Chatham utilize XXXX relief million property end loan tested QX. June the covenants burden covenants Even minus QX we $XX improving $XX.X is credit for XXXX. million adjusted was our QX, the cash September

significant operating XX Mission our Inn In This our position our Residence current a we agreement amount cash an $XX approximately for monthly months. burn to QX, for covers of liquidity million. So to provides into recover. current entered time performance sell Valley for

transaction million $XX.X that on cash repayment the approximately $XX this generate expect million sale cost proceeds loan the a We will of and after of property. mortgage

Assuming this to for liquidity transaction current increase $XXX months. our million XX which would our burn cash closes, cover would

Valley While Inn gain our sale. we six-month of any property priced or construction revolving of us XXX. on complete cash the at basis extension maturity loan to credit In the by and expect whole of gain, would plus options LIBOR a initially development. absorbed enable without four-year current to and will debt the has Warner decreases yield a million the the two the of spread loan by The liquidity points. associated achieves a that Mission a facility. construction the X%, taxable a loan is project using cost provided balance with generate Once XXX no losses obtained sale remaining there to be the Center ordinary Residence of will will This August fund be the distribution the with requirements $XX amount we

we debt unencumbered single maturity already matures will that credit maturities in debt September option XXXX, now debt from don't minimal we value serve have have benefits through need non-recourse several While believe proceeds. $XX.X raise XXXX over have XXXX. our what we of balance with additional a to that that of sheet $XXX a hotels have end in maturity the March facility for we could years. the collateral beyond maturing The have, million is mortgage six loan an is we extend next we million that additional XXXX. book we only to and as debt liquidity also Chatham's March After between next the

have capital operating markets both of a before amount XXXX. refinance recover the to will need of hotel performance a amount time We beginning and material for significant in we to debt

With lack guidance operating of we Since over questions. current the concludes at guidance the around call. performance, recovery going to our around are the for performance remains of in provide timing visibility This time. and hotel please operating withdrew my portion Operator, the not we visibility this limited line March. earnings open

Operator

session. At [Operator this will be Gap] [Audio time Instructions] question-and-answer a we conducting

Ari Klein

you and there cases decline COVID to then a look bit the that as November, is you [audio of December that gap] at expecting are

Jeff Fisher

when is period. look leisure a numbers you at the gap] to [audio travel attributable our --- weekends for just less little purely

by Portland great district have Maine in really Portsmouth been weekend. Savannah our numbers and We the with up benefited putting hotels historic New on downtown the Hampshire especially

see pretty of reduction you a have but So you minor pretty travel, numbers just the can don't it's revenue. that extent in from the as

operating our those it's I dynamic, feel little a from not that's Dennis kind I'm at of least The or increase of good weather. think purely purely I'll and November colder we're in the to or as leisure but our our occupancy combination and we that impacting is December about I So headlines team seasonality. think today RevPAR COVID hearing of seeing doing real cases and Jeremy leave what here.

but on that. want So anything the to you they're to not add much out traveling that if like weekends Dennis as

Dennis Craven

No.

right. I think that's

Jeff Fisher

I that. Well, appreciate

Ari Klein

standpoint? on asset has looking All that should are hotel sales, about hit right. or throughout pandemic hotels sell what you been then there's this Thanks from like asset what to an performance talk you the then expect and we the additional sales is the could from standpoint that at and

Jeff Fisher

listen we at transaction. brokered have the for anything a sale I mean, Ari else in don't moment

our very over about as XXXX, occupancy apart far Lamp well. Gas NOI not performed San year some was think three around our is Mission probably the discussed our be we Valley some think trailing XX think to that I million I of because opportunity, so were better to to at of pretty at February look hotel have negotiate four in I is within with military permanent release X.X, performing do you our In think respect one something as housing only pretty our San some increased NOI Inn, ADR should and of housing pandemic. price and good we just properties had bit, months, in benefit behalf hotel projected that a about in another and especially you of is Gas at ironically our of the for commission. opportunity or at buyers since basis, was little the Diego Residence assets. the of XXXX, a provide to to pretty also onset from RevPAR We miles And shift $X.X NOI we they're this apart quarter had supportive of the which customers this we terms and saw million. We and that about Lamp at the next Diego. we significant for benefit as alternative far to quick of performance can an interest downtown about listen But in location. meeting $XXX, our kind received the the and on few $XXX just a hotel quick occupancy which board should some business as a government XX% was on have rate looking I this look type did city occupancy if has X.X

of on I we that be would think, really to exemplifying to to enhance the want and perspective to great I way we acquisition be, listen, continue that both think and significantly using like So This disposition use a opportunistic. out provide certainly some ride to on. can upside the for pandemic, back to begin and hopefully to stabilize but capital we it's more things once distressed that that whether get also come can acquisitions we for much liquidity was our

Ari Klein

Got the it. color. Appreciate

Jeff Fisher

you. Thank

Operator

comes question Bryan from Maher B the next Riley line with Our Security. of

may with question. your proceed You

Bryan Maher

and considered. things Great pretty frankly quite good and all good morning quarter,

on So congrats that.

Jeff Fisher

Bryan. you, it. Appreciate Thank

Bryan Maher

approached kind sale When being the you we look lenders and take things have best to who or CMBS private at flip again I you servicers, and to to up But brokered and there see that what Jeff. or of for you. look else on being by sale this maybe on Are for for you are is seeing buy small teaming finance starting taking landscape back maybe or that etcetera might you so hear consider nothing a assets side would would is you when if at like of how this the with that equity or portfolio? that you

Jeff Fisher

quarter next and wouldn't call, because think what we're as some for the assets explained, think market lenders non-COVID the are certainly them out are I need get therefore I've yet a that some otherwise of that really something. prior on in direct now environment. think is process not some I from I the and tip few that there iceberg. is more year the Bryan, seeing up be that liquidity But into selling to deals first Yes of offering call even earnings what very I of A takes companies just tip our they iceberg

type about How or to we and acquire team that history we're think to be judicious you that it? there market we and heading soon we And do make how opportunity on and until environment RevPAR look a management because anytime two think the going own our certainly I would depending said little cash pulling negative recovery. know to that a pretty insignificant how trigger a an be and with proves not visibility I acquire. and our as was our you A, appetite hotel as if liquidity might stay at especially extended Look in going our that looking we a better think well is in shareholders. for burn pretty the get finance on already select the it's got JV be bigger resources doing but money I in the past. out is a will there So look talking be Board Jeremy we being a do is But at I what is also the servicer, where to we've run, the and done think like structure such do it's distressed

Bryan Maher

Great. pretty And in you then the brand everybody getting you and then with when on cutting guys what's some look and going you standards cuts are about and slack plugged and brand with think pandemic. you margins the and going look during do there that that you positively do slack can permanent that there is impact How about think when we going at forward? be think XXXX/XXXX to changes

Jeff Fisher

as I this this be take I'll on one Yes. in might optimistic and not then him. Dennis chime as to likes but

the offering obviously lingering insignificant cocktail the going and to your and brands. brand in Homewood here that I offerings that complimentary that some margins effects in our hotels. the but and benefit have both F&B, the Residence complementary very to you're around breakfast going goes and think are It's hour

think for evening away brands. those that probably goes that or hour one front all together on of I both

the The I that. rest very creep right with how breakfast, to encouraging. fight to will way have brands The community where it. franchisee way incrementally So We'll the feeling a that's get see other out fight we'll before. figure they one was and it far that or will back a it the of

Dennis Craven

XXXX, $X million I only talked a us I think thing is, as add occupied per mean, of only little of Bryan thing I $X think year stuff kind or for the it room over million Yes. the Jeff about that to would expenses. think I complimentary I an $X in on that's the about

look is away third even us breakfast a our going if encouraging, down for million to buck side. which million roughly the labor we the probably low. on think and think to not be which that the really quarter to that X, for think obviously that's social $XX of a we about $X million bucks said, at hour is you XXXX $XX like I around that in now million So can $XX CPR listen, But on just and of X about, rooms as is When on about $X, which of couple that was Jeff I X, get harped was if spent department. spent costs and EBITDA complimentary goes I still even in X, everything you don't I know, X, we've rooms labor costs benefit quarters

room significant or in, somehow extent we pretty much servicing that that, the offer can bring cleaning pay you another things if there save where again that So for some you're again just hey a dollars to being X% a EBITDA. somehow additional we as change of is you're could able said, either not somehow of then million couple there also dollars to that's

able the other So we to a bit be be side. think on will we profitable little more

Jeff Fisher

it. anyway. before after Yes, Bryan housekeeping they to is housekeepers just that way for really The than up people of housekeeping because pick then charges is will leave and I were we'll want think on be absolutely pandemic expectation they rooms over in don't the guests less think the I the stay that

types hotels. frankly again in So extended and even a we've could us be impact help stay than much an hotel push other got average of up length that significant bigger of higher that benefit that very stay bigger margin with and the a to

Bryan Maher

Okay. Thanks Jeff.

Operator

Markets. Capital Tyler from with Our comes Janney line the next of Batory question

proceed You with your question. may

Tyler Batory

other that in your of what's to of impactful quarter on I'm to in been that already Thank guys that of here? curious follow the higher opening And length to driving third here. back Good asked kind the traveler up go you cited stay remarks. have statistic length was average that and of the stay questions you. margins To morning. some Leisure how that

Dennis Craven

The the I business We've be business as a hotels. of Yes. so well to I'll not again to to is length northeast take of even this we've leisure terms moved nursing going a really our as in nurses longer term stay, in our in hotels as large and even San mean into Residence us able of for northeast of be got we've total bring stay San where Jeff. that's Mateo up groups really percentage at attributable The hotels. length of up Inn the that into got you're we've government is the in the going whether just Charleston, couple though by guests. where Anaheim, to in several the revenue. stay That's traveler in Diego, there in the driven much the that's getting got Fort length government our in military Lauderdale been Somerville

few hotels again term have at some our guests. We housing of student a longer

business that it's hotels a the question as nature So your of have in the in these part the related even really long-term at it rooms the a I And we very frequency. that the Yes, is. come of that is terms our frequently talked think of moment. second just Jeff margin rooms cleaning guest, we're about has certainly whether not fact which in of or short-term be down

we've benefited well. as So from that

Tyler Batory

Okay.

Dennis Craven

per occupied occupied cost was the that's prepared in the per $XX my quarter in department think And recall, our in our so that's quarter about where of to rooms third significant down pretty no XXXX XXXX, room and decline. third in comments room XX bucks I sorry if

Tyler Batory

good a That's my next line Okay. here. of questioning segue into

the need in level. it some start that terms have at the is how is At of You that the kind more, curious mean what of XX, I working through progression occupancy, point forward? do you just I'm thinking about it going XX% numbers went of you're to property employees you adding

Dennis Craven

going data at the I stable September, occupancy XX% Yes. of that was looked XXX between in I third quarter kind fairly our mean think June and range. in you XXX think if from I to as points

not lot. I think probably employee a from base your XX whole move changing XX you're you if to

XX% as get the mid into think up of and especially to XXs bringing going you more kind start people. you're I to back

I the of to number said think which of frequency fact same bringing due employees Jeff going is again not pre-pandemic. believe again be you after back all if as environment would and going today's housekeeping to versus pre-corona less to compare the you definitely have you're be the we

Tyler Batory

on of as Okay. in following in some are how what's going terms they these you still in your ADR reopening? right any markets And at markets have me of last for many question properties on with your hotels closed sense are on do now that and

Speaker

Yes.

I at some opened just don't were question I open during will know they don't weekends closed you industry think comparable of of days that and year only a is when of what their think days as I openings to honestly one rates that certainly BS and XXth opening or rates come were you. know. naturally seen think a which versus that were they to the leisure comment I market June than year from XXth lot open I day or the talking going percentage to And that number and hotels open is, to versus because respect to be quite is about just the rooms heard last I the is stuff, but a the I can the what are quarter. really down that having a can peers first to the get be originally rates our you September of maintaining we've about still they there. higher the month bear. and talk the of to hotels back traveler come on Tyler fairly part every seven then with have on XX kind week was to To second all are last

XXX us, the to next I from the days, really for the much think move I range for days. that hover kind very So $XXX expect of days. again XX last to we've rates that in don't for XX seen XXX range

those than going So I the previously. lower are to what think much they and bear rates to only are were what certainly be market's going

Tyler Batory

great. you. That's way by quarter me. well. Okay, for Thank all the as Nice

Jeff Fisher

you. Thank

Operator

Anthony from comes from question next the Barclays. Our Instructions] line [Operator of Powell

your may proceed You with question.

Anthony Powell

The which to price, price? is that the the Hi, rate X.X% good morning. get cap on the and How sale question you did good. buyer pretty

Jeff Fisher

I The question. were hotel is through distressed we one hotel prior selling last pandemic a on negotiation six We a in as were or that five performers at firm think for about the obviously. not price talked the we was a the months. it interested top of our

think it think I price a I for parties. for So fair was us, both

X.X number with a think for we're XXXX strong. that on pleased was the cap I very us very

helpful the terms needing years few condition price maintaining very had San We Commission of Diego its every was it the in that integrity. in just a was think current asset target. renovated for ago. housing need Housing I Its permanent supportive

benefited accrues all it's as is shareholders Island So that again all management we in to we all, any side hotel there price our a to type again that going unfortunately sell are be and our to listen benefit having able the shareholders. I value fees to the fact of well, in without of terms on think, that to which pay termination

and to to really weren't price price. it at was price going negotiated we a all. price the at distressed a So be had It a market sell

Anthony Powell

Got in pricing may portfolio need of fit it. And this kind of exploring kind strong the that this your given now on are saw you there that any alternative hotels other you're transaction?

Jeff Fisher

listen State what so especially a hotels. us past, I say California Northern times opportunity five of in four Diego California, in has years. the Anthony our specifically really this San an be The few I I'd think or mean Southern quite and is of California might California there done for over one

and these transactions really finance the to So mechanics transactions do of to have these process, they the types importantly.

So in is, way housing of so or have some, permanent potentially versus six uses an bulk investors think say are to I given the to to attribute will over case at looking significant this stay urban we extended student locations. seen other our other for the in portfolio that's months extended stay housing whether some country last supportive around component hotels that execute of lot work that the transaction. our again in of jurisdictions I terms kind how how with behind a make a and and

going about is the be six if an last come shareholders. that's for about that's believe opportunistic our we and we're to a right deal if to can, months the we and dynamic it's interesting continue that So price in good

Anthony Powell

kind last coming lower able in out the What's view pressure right That's talked finding of this about and know All on terms pay prices you wage able labor your in and up on you'll locations. labor run given year cost be the in employment cost. labor I guess as of at of more and in labor out the obviously maybe of, I was support lot given the changing you've staff ramp do that year? things to there. kind some one you’ve all unemployment markets next a that out of difficulty assistance just think that's past of and the been

Jeff Fisher

Yes.

but supplement from on employees labor We've find two seen that period of or more and different that certainly to I it week canceled, to getting availability One making unemployment. to find, because canceled more $XXX after is think couch. it the out points, housekeepers different was two they the question. were a or answers per during money tough quite not ran lower was honestly unbelievably sitting rate government their hour

industry year last going there's the don't who beginning up the of part and at and loosen loosened over what the and only of whether pressures will nothing support But wage to continue feel we couple rebounds, is next years. this benefits they to think has as of are tail of off those and a think as bit that that obviously be So I certainly start government at little to the the knows. wave I that were moment

So able we some to do paying what the believe be replace to had at discount been labor that we will we pre-pandemic.

Anthony Powell

you. Thank Okay.

Operator

to we today's closing Ladies reached of back and to call remarks. I session. have end Jeff gentlemen, like the Fisher turn would over this Mr. question-and-answer for

Jeff Fisher

we've We're do management and that kind of is of you appreciate appreciate of questions as to substantially our on going certainly with forward. to thank Well, We those continue and I ultimately the get to at we expenses the in a the lot. as outset, working time everybody. developments the company, interest positive controlling on being we a which burn this exactly our call and been doing, what negative you certainly our Chatham. period and reporting positive to RevPAR daily forward Thanks and we zero during basis course maximizing to move look cash said

Operator

joining conference. for Thank today. today's concludes you This

a time. your rest at You Have of great may evening. disconnect your lines this