Chatham Lodging Trust (NYSE: CLDT) reported Q2 EPS of ($0.57), $0.19 better than the analyst estimate of ($0.76).

Second Quarter 2020 Operating Results

• Portfolio Revenue per Available Room (RevPAR) – Declined 77 percent to $33, compared to the 2019 second quarter. Average daily rate (ADR) decreased 43 percent to $98, and occupancy dropped 59 percent to 34 percent.
• Net income (loss) – Declined $36.7 million to a loss of $(27.2) million for the 2020 second quarter compared to the 2019 second quarter. Net loss per diluted share was $0.57 versus net income per diluted share of $0.20 last year.
• Adjusted EBITDA – Decreased $42.0 million to $(3.3) million.
• Adjusted FFO – Declined $40.1 million to $(12.4) million. Adjusted FFO per diluted share was $(0.26), compared to $0.58 in the 2019 second quarter.

“From the outset of the pandemic, we successfully secured unique sources of demand through exhaustive sales and revenue sourcing efforts and certainly believe we are benefitting from the concentration of extended-stay rooms in our portfolio,” commented Jeffrey H. Fisher, Chatham’s president and chief executive officer. “Even as hotels have reopened over the last few months, we have sustained our outstanding RevPAR market share gains with an average RevPAR index during the second quarter of 145 compared to our 2019 RevPAR index of 118. By keeping all hotels open, we were able to book meaningful revenue and provide rooms to important long-term customers. Fortunately, we have been able to leverage those wins to capture more of the oncoming demand which allows us to better bridge the gap to recovery.”

“We have long touted the exceptional attributes of our portfolio, high quality, high margin hotels predominantly comprised of upscale extended-stay hotels in sought after markets that enable us to drive higher profits during periods of growth and to diversify our customer base during downturns. This enables us to maximize revenue and operate profitably at lower operating levels,” Fisher emphasized. “Additionally, we have been able to keep all hotels open during the pandemic and minimize cash burn which will better insulate us through this unprecedented period of weak demand. On a relative basis, I am very pleased with our performance during the second quarter and feel confident that our operating results will outperform most of our lodging REIT peers in 2020.

“Given our portfolio attributes, we believe that we will return to 2019 revenue levels sooner than most of our lodging REIT peers. Furthermore, we are confident that once performance stabilizes, the operating model will be more profitable due to the implementation of more efficient housekeeping standards and less costly complimentary food and beverage programs,” Fisher concluded.

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