Chatham Lodging Trust (NYSE: CLDT) reported Q3 EPS of $0.31, $0.02 better than the analyst estimate of $0.29. Revenue for the quarter came in at $90.23 million versus the consensus estimate of $87.59 million.

• Portfolio Revenue per Available Room (RevPAR) - Increased 1.1 percent to $147, compared to the 2017 third quarter, for Chatham’s 40, comparable wholly owned hotels (excludes the Residence Inn Charleston Summerville which opened in August 2018). Average daily rate (ADR) declined 1.0 percent to $171, while occupancy rose 2.3 percent to 86 percent.
• Net Income - Improved $0.2 million to $14.7 million. Net income per diluted share was $0.31 versus $0.36 in the 2017 third quarter.
• Adjusted EBITDA - Advanced $1.4 million to $38.6 million, within guidance and compared to $37.2 million in the 2017 third quarter.
• Adjusted FFO - Rose $1.3 million, to $28.4 million, versus $27.0 million in the 2017 third quarter. Adjusted FFO per diluted share was $0.61, compared to guidance of $0.58-$0.62 per share.
• Operating Margins - Experienced a 90-basis point decline to 48.1 percent in comparable gross operating profit margins. Comparable Hotel EBITDA margins were off 110 basis points to 41.3 percent, within guidance range of 41 to 42 percent.
• Acquisition - Acquired the 96-room Residence Inn by Marriott Charleston Summerville, S.C., for $20.8 million, or approximately $217,000 per room.

“Our third quarter results finished at the upper end of our FFO per share guidance expectations,” said Jeffrey H. Fisher, Chatham’s president and chief executive officer. “This was driven by RevPAR growth above our guidance expectations, despite tough comparisons at our eight hotels in Houston, Dallas and Florida that benefitted from hurricane-related business in the last month of the 2017 third quarter. Continuing a trend, we see improving conditions in many of our markets.”

GUIDANCE:

Chatham Lodging Trust sees FY2018 EPS of $0.67-$0.71, versus the consensus of $0.68. Chatham Lodging Trust sees FY2018 revenue of $313.7-315.2 million, versus the consensus of $319.2 million.

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