Chatham Lodging Trust (CLDT) 2020年年度報告「NYSE」.pdf

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1、C HAT HAM L O D GI N G T R U S T2 0 2 0 A N N UAL R EP OR TCHA T HAM L ODGING TRUST 2020 ANNUAL REPORTChatham 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.Our high

2、-quality hotels are located in major markets with high barriers to entry,near primary demand generators for both business and leisure guests.Our primary objective is to generate attractive returns for our shareholders through investing in hotel properties at prices that provide strong returns on inv

3、ested capital,paying meaningful dividends and generating long-term value appreciation.Chathams Brand CompositionChathams Top Markets71%Residence Inn9%Homewood Suites8%Hampton Inn8%Courtyard3%Other25%Silicon Valley12%Greater NY10%Los Angeles10%NH/ME7%Houston7%Dallas7%Charleston6%San Diego15%OtherBase

4、d on the percentage of hotel EBITDA for the twelve months ended December 31,2020Based on the percentage of hotel EBITDA for thetwelve months ended December 31,2020As I began to write this years letter to you,our shareholders,I spent a few minutes reflecting where we were just 12 months ago when last

5、 years letter went to print in early March 2020 during the earliest days of the COVID-19 pandemic.I noted then that I was comforted knowing that Chatham Lodging Trust had the platform working closely with Island Hospitality to effectuate change and react quickly to evolving circumstances while deali

6、ng with the unknown effects from the deadly virus.Those words certainly ring true 12 months later.2020 goes on record as the absolute worst year in the history of our lodging industry.It presented us with extremely difficult situations,including the elimination of our dividend and significant layoff

7、s.Since the outset of the pandemic,in an effort to preserve long-term shareholder value,we focused 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,implementi

8、ng 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 the companys credit facility and obtaining new financing o

9、n its hotel development Developing a more structured comprehensive Environmental,Social and Governance corporate responsibility strategy Since our IPO in 2010,based on our experience with Innkeepers,we have touted our platform for being best-in-class throughout all phases of a lodging cycle,and 2020

10、 certainly tested that thesis.As the saying goes,though,the proof is in the pudding,and we delivered noteworthy results amid a global pandemic.We generated the highest absolute RevPAR of all lodging REITs over the final three quarters of 2020,adding to our record of the highest operating margins of

11、all lodging REITs,including the highest in 2019 and every year prior since our IPO in 2010.Since 2010,we have accumulated a portfolio that delivers on a relative basis strong top-line and bottom-line results,no matter the cycle.We generated the second-highest EBITDA per Dear Shareholder,Jeffrey H.Fi

12、sherChairman,Chief Executive Officer and President1Chatham Lodging Trustroom of all lodging REITs in 2020.Lastly,and this is especially notable,through this unprecedented period,we produced positive Adjusted EBITDA for the full year,and we paid all debt service,including principal amortization of ap

13、proximately$9 million.Our sales and revenue management teams delivered outstanding results since the outset of the pandemic,as demonstrated by our significant RevPAR index/market share gains.Since the beginning of April 2020,our RevPAR index jumped 15 percent to an average monthly index of 136,compa

14、red to our already strong 2019 RevPAR index of 118.The impressive gains are driven by Islands outstanding direct sales efforts from its national,regional,and local sales teams,as well as concentrated revenue management efforts ensuring that we quickly adjust to the diverse demand sources in todays l

15、odging environment.Additionally,and very importantly,we have the largest concentration of extended-stay rooms of all lodging REITs at 58 percent.Another impressive statistic,during 2020,80 percent of our hotel EBITDA was generated by our Residence Inn and Homewood Suites hotels,a significant increas

16、e compared to the percentage of rooms comprised of those two brands.Our upscale,extended-stay hotels provide the flexibility during periods of growth or weakness to diversify our customer base to maximize revenue,a thesis we believe and have espoused for almost four decades.Without sacrificing the u

17、pside,we can limit the downside.From an operating expense standpoint,we have been hyper-focused on every expense,working alongside Island,whose team of analysts remain in day-to-day touch with every hotel general manager and invest most of their time helping each hotel micromanage the bottom-line.As

18、 trends improve as expected in 2021,we will maintain this focus to generate strong flow-through to the bottom line.In addition to hotel-level expense management,we have been extremely aggressive at the corporate level.Dennis Craven and I volunteered a 50 percent pay cut,and we instituted 25 percent

19、corporate pay cuts across the board to all employees,higher and deeper than most of our peers,and unfortunately,had to reduce headcount by 35 percent.In total,we reduced salary costs by over 50 percent.Our corporate administrative expenses were down approximately 20 percent year over year.Also,we si

20、gnificantly cut all capital expenditures during 2020.Our 2020 budgeted capital expenditures were$23 million.We cut that expense to$14 million,a reduction of approximately 40 percent.Of the$14 million spend,$11 million was on two renovations that were ongoing when the pandemic hit.Another strategic g

21、oal was to solidify our balance sheet as much as possible and enhance liquidity.With the support of our banking group,we amended our credit facility to gain full availability of the$250 million facility that allows us to make acquisitions if we see an opportunity and provide additional liquidity to

22、survive prolonged periods of pandemic-caused cash burn.With plenty of capacity and debt markets wide open prior to the pandemic,we were using our credit facility to fund our Warner Center development.Given the potential liquidity crisis,it was important for us to obtain more permanent financing.We p

23、aused the development in the second quarter.Having already invested approximately$30 million into the project,we fully funded the remaining costs with a construction 22020 Annual Reportloan.As of year-end,we have invested approximately$44 million into the development,and we are very excited about th

24、e income earning potential of this hotel when it opens in late 2021.We have no looming significant debt maturities,and the weighted average maturity of our fixed-rate debt is March 2024,which should allow for operating results to fully recover.On the liquidity front,Chatham has estimated liquidity o

25、f$136 million,including cash of approximately$21 million as of December 31,2020,and remaining borrowing capacity on the credit facility of$115 million.Although we are burning less cash than most of our peers and our liquidity runway was longer than most of our peers,we felt that if the opportunity p

26、resented itself,we would be open to selling an asset if the pricing was strong.This step could further enhance our liquidity with the ultimate outcome to add flexibility down the road.This opportunity arose when we began talks with the San Diego Housing Commission.In the fourth quarter,we sold our 1

27、92-room Residence Inn Mission Valley to the San Diego Housing Commission for$67 million or almost$350,000 per key,an incredibly attractive 6.5 cap rate on 2019 results.As we look back on lodging transactions in 2020,this sale stacks up as one of the best of all premium-branded sales in 2020.Lastly,w

28、hile 2020 presented tumultuous challenges,the new reality we experienced reinforced our desire to formalize our historical efforts relating to Environmental,Social,and Governance(ESG)issues into a more structured corporate responsibility strategy.That was the natural next step,and we are therefore p

29、roud to announce the launch of our 2020 Corporate Responsibility section of our website,which highlights our past achievements and refreshed approach to sustainability,social matters,and corporate governance.Our commitments to sustainability aim to integrate ESG factors into our companys value creat

30、ion strategy to drive profitability while positively impacting our stakeholders,the environment and the communities where our hotel properties are located.Our refreshed corporate responsibility strategy places importance on enhancing operating efficiencies and mitigating adverse environmental impact

31、s;promoting stakeholder engagement and a healthy and safe work environment;and championing a thorough Code of Conduct as well as other policies pertaining to environmental and social matters.Likewise,we uphold the highest standards of ethical business practices and compliance with all laws and regul

32、ations relevant to our company.One of our key strengths is efficiently managing our resources.Our commitment to environmental stewardship is reflected in the performance of our hotel properties.Compared to our peers in the U.S.lodging sector,our relative 2019 environmental performance ranks as one o

33、f the most environmentally efficient hotel portfolios in terms of energy intensity,GHG emissions intensity,and water intensity.However,resting on our laurels is not what we do at Chatham,and we are committed to working with our third-party hotel management partners to improve waste tracking and cont

34、inuously improving our portfolios environmental efficiency.2020 greatly impacted the hospitality industry and brought renewed attention to racial injustices,and we at Chatham recognized the need to strengthen our corporate responsibility commitments.We will strive to continue ensuring the safety of

35、our workers and guests and uphold 3Chatham Lodging Trust42020 Annual Reportthe highest standards of procedure during this pandemic.We are also committed to promoting diversity and inclusion in our workplace and stand firmly against discrimination and harassment.One of our six independent trustees is

36、 female and at the end of 2019,59 percent of Chatham Lodging Trusts employees were women and 17 percent were non-white employees.While we intend to continue building our companys efficiency,resiliency,and responsibility,we are also looking forward to enhancing our disclosures by aligning our future

37、reporting with standards from the Global Reporting Initiative(GRI),Sustainability Accounting Standards Board(SASB)and Task Force on Climate-related Financial Disclosures(TCFD).As we continue our sustainability journey,we would like to thank all of our stakeholders for making our commitments and succ

38、esses possible.Last year was a difficult year across all fronts,but despite all that,Im proud of our efforts and very appreciative of the sacrifices made by our employees across the country.Our outperformance in 2020 is a testament to our teams at Chatham and Island,as well as our incredible portfol

39、io.Our teams at Chatham and Island have the experience to persevere through these situations,and our achievements in a dire year are noteworthy.Our portfolio is comprised of high-quality,extended-stay hotels and premium-branded,select-service hotels in locations that generate room revenue from diver

40、se demand sources.We certainly believe we have made some important strides to protect shareholder value now and provide flexibility to add value down the road.Just prior to printing this letter,Jack P.DeBoer,who served as a board member for Chatham since its initial public offering in 2010 as well a

41、s board member of Innkeepers USA Trust for approximately 10 years,passed away.Jack was a great friend,mentor and inspiration for me personally over the last 27 years,and I know he will be missed dearly by all who had the good fortune to know him.He was not only a great businessman and advisor,but al

42、so an amazing human being.He was a wonderful patriarch for his family and a great humanitarian,dedicating much time and resources to those in need around the world.Our Board will never be the same.I think we all can say were looking forward to better days in 2021.As COVID-19 vaccinations roll out ac

43、ross the United States and the world,we expect travel to rebound meaningfully in the second half of the year and into 2022 and 2023.We believe that we will reach cash flow breakeven levels sooner than most other lodging REITs.Thank you for your support.We genuinely appreciate it.Sincerely,Jeffrey H.

44、FisherChairman,Chief Executive Officer and PresidentMarch 8,2021?THIS PAGE INTENTIONALLY LEFT BLANK THIS PAGE INTENTIONALLY LEFT BLANK THIS PAGE INTENTIONALLY LEFT BLANK MANAGEMENTJeffrey H.FisherChairman of the Board,Chief Executive Officerand PresidentDennis CravenExecutive Vice President and Chie

45、f Operating OfficerEric KentoffSenior Vice President,General Counseland SecretaryJeremy WegnerSenior Vice Presidentand Chief Financial OfficerINDEPENDENT REGISTERED CPAPricewaterhouseCoopers LLP333 SE 2nd AvenueMiami,FL 33131BOARD OF TRUSTEESBill BrewerPrivate InvestorThomas J.CrockerFounding Partne

46、rCrocker Partners,LLCJack P.DeBoerChairmanConsolidated Holdings,Inc.(deceased March 2021)Mary Beth HigginsChief Executive OfficerAffinity GamingRobert PerlmutterPrivate InvestorRolf E.RuhfusChairman and Chief Executive OfficerLodgeWorks CorporationSHAREHOLDER INFORMATIONInvestor RelationsChatham Lod

47、ging Trust222 Lakeview AvenueSuite 200West Palm Beach,FL 33401Tel:561.802.4477Fax:561.835.4125ANNUAL MEETINGThe annual meeting will be held on Wednesday,May 11,2021 at 10:00 a.m.in the Palms Meeting Room.Address above.TRANSFER AGENTEQ Shareowner ServicesPO Box 64945St.Paul,MN 55164-0854Corporate Inf

48、ormationHigh-Quality Hotels in High-Quality Markets40%OF PORTFOLIO LOCATED ON THE WEST COAST AND 29%IN THE NORTHEASTSeattle,WA:5%Minnesota:2%Denver,CO:4%Nashville,TN:1%Silicon Valley,CA:23%Los Angeles,CA:6%San Diego,CA:6%Dallas,TX:6%San Antonio,TX:2%Houston,TX:7%New Hampshire:4%Portland,ME:2%Massach

49、usetts:5%Connecticut:1%New York:5%Pennsylvania:3%Washington,D.C.:9%Charleston,SC:3%Savannah,GA:3%Orlando,FL:1%Fort Lauderdale,FL:2%Note:figures are rounded to the nearest whole percentage and therefore may not reflect the exact percentage.MSA/State reflects%of total underpreciated cost basis as of December 31,2020.C HATH AM LODG ING TRU ST222 Lakeview Avenue Suite 200West Palm Beach,FL CHA T HAM L ODGING TRUST 2020 ANNUAL REPORT