On this page of StockholderLetter.com we present the latest annual shareholder letter from Chatham Lodging Trust — ticker symbol CLDT. Reading current and past CLDT letters to shareholders can bring important insights into the investment thesis.
Chatham Lodging Trust
2023 Annual Report
About Chatham Lodging Trust
Chatham 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-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 invested capital, paying
meaningful dividends and generating long-term value appreciation.
H I G H- Q U A L I T Y H O T E L S I N H I G H-Q U A L I T Y M A R K E T S
Seattle, WA: 4%
Minnesota: 1%
Denver, CO: 3%
Nashville, TN: 2%
Silicon Valley, CA: 13%
Los Angeles, CA: 9%
San Diego, CA: 6%
New Hampshire: 5%
Portland, ME: 4%
Massachusetts: 3%
Connecticut: 2%
New York: 7%
Pennsylvania: 3%
Washington, D.C.: 8%
Dallas, TX: 6%
Charleston, SC: 3%
Austin, TX: 6%
Savannah, GA: 3%
San Antonio, TX: 2%
Houston, TX: 3%
Destin, FL: 2%
Orlando, FL: 2%
Fort Lauderdale, FL: 3%
C H AT H A M L O D G I N G T R U S T

2023 ANNUAL REPORT

1
Jeffrey H. Fisher
Chairman, Chief Executive
Officer and President
Dear Shareholder,
For Chatham, 2023 was quite the roller coaster, with the beginning of the year meaningfully impacted
by significant layoffs in the technology sector, followed by the elimination of internship programs for the
summer, all while business travel in most other markets was performing well. After Labor Day, building
off the strong business travel recovery around the country, our technology markets started to gain
traction in the fourth quarter. Plenty of notable accomplishments in 2023 include:
    Grew RevPAR by 6.1 percent, beating industry performance by about 25 percent
    Increased profits by 25 percent in other departments
    Reduced net debt by $26 million and leverage ratio to 25 percent from 27 percent
    Repaid $150 million of maturing debt using available liquidity and new debt issuances
    Issued $83 million of fixed-rate debt
    Paid common share dividends of $0.28 per share compared to $0.07 per share in 2022
     Participated in the Global Real Estate Sustainability Benchmark (   GRESB   ) for the second time,
increasing our overall score by 9 percent from 75 to 82
    Earned four of five GRESB Stars and was awarded GRESB   s    Green Star   
     Received an overall score of 82/100, ranking 31st out of 115 listed companies in the Americas
region and 2nd in Chatham   s peer group
2

C H AT H A M L O D G I N G T R U S T

2023 ANNUAL REPORT
For the first time since the pandemic, 2023 RevPAR exceeded pre-pandemic levels when you exclude our five
primarily tech-driven hotels in Silicon Valley and Bellevue, Wash. 2023 RevPAR for those five hotels was 28
percent below 2019 RevPAR levels. Chatham will grow its earnings rapidly as these five hotels continue to
recover as they accounted for approximately 17 percent of hotel EBITDA in 2023 versus 30 percent in 2019. As
I write this letter, RevPAR for those five hotels is up more than 10 percent for each of the last five months, and
business travel demand in these markets is encouraging. If hotel EBITDA recovers to pre-pandemic levels at
these five hotels, we would increase our hotel EBITDA by $16 million and FFO per share by $0.32, or 14 percent
and 27 percent respectively, over 2023 levels.
Big Tech is constantly evolving, and we are in the midst of another transformation with the development
of Artificial Intelligence (AI) technology. Employment in the valley exceeds pre-pandemic levels, and tech
companies are finally getting more serious about employees returning to the office and this will boost
room demand.
Sunnyvale, where we have two hotels encompassing 479 rooms or over 8 percent of Chatham   s total rooms, is
becoming the epicenter of AI. It is where Applied Materials, which has forever been one of our top accounts,
announced plans to build the EPIC Center. That   s the Equipment and Process Innovation and Commercialization
Center, which is a $4 billion, 180,000 square foot R&D facility only blocks away from our two Sunnyvale
Residence Inns. The EPIC Center will be a state-of-the-art facility for collaborative innovation with chip makers,
universities and ecosystem partners. Some of those partners include AMD, Nvidia and Western Digital, all
customers of ours.
C H AT H A M L O D G I N G T R U S T
CHATHAM   S
CHATHAM   S
BRAND
BRAND
COMPOSITION
COMPOSITION
46%46%
Residence
Residence
Inn Inn
11% 11%Homewood
Homewood
Suites
Suites
9% 9%Courtyard
Courtyard
8% 8%Hilton
Hilton
Garden
Garden
7% 7%Hampton
Hampton
Inn Inn
6% 6%Hyatt
Hyatt
PlacePlace
4% 4%Embassy
Embassy
3% 3%SpringHill
SpringHill
6% 6%Other
Other
Based
Based
on the
on percentage
the percentage
of hotel
of hotel
EBITDA
EBITDA
for for
the twelve
the twelve
months
months
ended
ended
December
December
31, 2023
31, 2023

2023 ANNUAL REPORT

3
CHATHAM   S
CHATHAM   S
TOP
TOP
MARKETS
MARKETS
13% 13%
Silicon
Silicon
Valley
Valley
9% 9%NH/ME
NH/ME
9% 9%Los Angeles
Los Angeles
8% 8%DC DC
7% 7%Greater
Greater
NY NY
6% 6%San San
Diego
Diego
6% 6%Dallas
Dallas
5% 5%Austin
Austin
4% 4%Seattle
Seattle
3% 3%Houston
Houston
3% 3%Denver
Denver
3% 3%Pittsburgh
Pittsburgh
22%22%
Other
Other
Based
Based
on the
on percentage
the percentage
of hotel
of hotel
EBITDA
EBITDA
for for
the twelve
the twelve
months
months
ended
ended
December
December
31, 2023
31, 2023
Also in Sunnyvale, Intuitive Surgical, another one of our top accounts, is meaningfully expanding its campus,
building another 1 million square feet of office space proximate to our hotels. Lastly, Google   s expansion into San
Jose Downtown was delayed, but we   re benefiting as they continue to expand their Caribbean campus in
Sunnyvale. Consequently, travel demand is growing and is promising for 2024 and beyond. Chatham has the
highest exposure to Big Tech hotel demand of all lodging REITs, and our hotels stand to outperform.
 • shareholder letter icon 4/2/2024 Letter Continued (Full PDF)
 • stockholder letter icon 4/5/2023 CLDT Stockholder Letter
 • stockholder letter icon More "REITs" Category Stockholder Letters
 • Benford's Law Stocks icon CLDT Benford's Law Stock Score = 90


CLDT Shareholder/Stockholder Letter Transcript:

Chatham Lodging Trust
2023 Annual Report

About Chatham Lodging Trust
Chatham 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-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 invested capital, paying
meaningful dividends and generating long-term value appreciation.
H I G H- Q U A L I T Y H O T E L S I N H I G H-Q U A L I T Y M A R K E T S
Seattle, WA: 4%
Minnesota: 1%
Denver, CO: 3%
Nashville, TN: 2%
Silicon Valley, CA: 13%
Los Angeles, CA: 9%
San Diego, CA: 6%
New Hampshire: 5%
Portland, ME: 4%
Massachusetts: 3%
Connecticut: 2%
New York: 7%
Pennsylvania: 3%
Washington, D.C.: 8%
Dallas, TX: 6%
Charleston, SC: 3%
Austin, TX: 6%
Savannah, GA: 3%
San Antonio, TX: 2%
Houston, TX: 3%
Destin, FL: 2%
Orlando, FL: 2%
Fort Lauderdale, FL: 3%

C H AT H A M L O D G I N G T R U S T

2023 ANNUAL REPORT

1
Jeffrey H. Fisher
Chairman, Chief Executive
Officer and President
Dear Shareholder,
For Chatham, 2023 was quite the roller coaster, with the beginning of the year meaningfully impacted
by significant layoffs in the technology sector, followed by the elimination of internship programs for the
summer, all while business travel in most other markets was performing well. After Labor Day, building
off the strong business travel recovery around the country, our technology markets started to gain
traction in the fourth quarter. Plenty of notable accomplishments in 2023 include:
    Grew RevPAR by 6.1 percent, beating industry performance by about 25 percent
    Increased profits by 25 percent in other departments
    Reduced net debt by $26 million and leverage ratio to 25 percent from 27 percent
    Repaid $150 million of maturing debt using available liquidity and new debt issuances
    Issued $83 million of fixed-rate debt
    Paid common share dividends of $0.28 per share compared to $0.07 per share in 2022
     Participated in the Global Real Estate Sustainability Benchmark (   GRESB   ) for the second time,
increasing our overall score by 9 percent from 75 to 82
    Earned four of five GRESB Stars and was awarded GRESB   s    Green Star   
     Received an overall score of 82/100, ranking 31st out of 115 listed companies in the Americas
region and 2nd in Chatham   s peer group

2

C H AT H A M L O D G I N G T R U S T

2023 ANNUAL REPORT
For the first time since the pandemic, 2023 RevPAR exceeded pre-pandemic levels when you exclude our five
primarily tech-driven hotels in Silicon Valley and Bellevue, Wash. 2023 RevPAR for those five hotels was 28
percent below 2019 RevPAR levels. Chatham will grow its earnings rapidly as these five hotels continue to
recover as they accounted for approximately 17 percent of hotel EBITDA in 2023 versus 30 percent in 2019. As
I write this letter, RevPAR for those five hotels is up more than 10 percent for each of the last five months, and
business travel demand in these markets is encouraging. If hotel EBITDA recovers to pre-pandemic levels at
these five hotels, we would increase our hotel EBITDA by $16 million and FFO per share by $0.32, or 14 percent
and 27 percent respectively, over 2023 levels.
Big Tech is constantly evolving, and we are in the midst of another transformation with the development
of Artificial Intelligence (AI) technology. Employment in the valley exceeds pre-pandemic levels, and tech
companies are finally getting more serious about employees returning to the office and this will boost
room demand.
Sunnyvale, where we have two hotels encompassing 479 rooms or over 8 percent of Chatham   s total rooms, is
becoming the epicenter of AI. It is where Applied Materials, which has forever been one of our top accounts,
announced plans to build the EPIC Center. That   s the Equipment and Process Innovation and Commercialization
Center, which is a $4 billion, 180,000 square foot R&D facility only blocks away from our two Sunnyvale
Residence Inns. The EPIC Center will be a state-of-the-art facility for collaborative innovation with chip makers,
universities and ecosystem partners. Some of those partners include AMD, Nvidia and Western Digital, all
customers of ours.

C H AT H A M L O D G I N G T R U S T
CHATHAM   S
CHATHAM   S
BRAND
BRAND
COMPOSITION
COMPOSITION
46%46%
Residence
Residence
Inn Inn
11% 11%Homewood
Homewood
Suites
Suites
9% 9%Courtyard
Courtyard
8% 8%Hilton
Hilton
Garden
Garden
7% 7%Hampton
Hampton
Inn Inn
6% 6%Hyatt
Hyatt
PlacePlace
4% 4%Embassy
Embassy
3% 3%SpringHill
SpringHill
6% 6%Other
Other
Based
Based
on the
on percentage
the percentage
of hotel
of hotel
EBITDA
EBITDA
for for
the twelve
the twelve
months
months
ended
ended
December
December
31, 2023
31, 2023

2023 ANNUAL REPORT

3
CHATHAM   S
CHATHAM   S
TOP
TOP
MARKETS
MARKETS
13% 13%
Silicon
Silicon
Valley
Valley
9% 9%NH/ME
NH/ME
9% 9%Los Angeles
Los Angeles
8% 8%DC DC
7% 7%Greater
Greater
NY NY
6% 6%San San
Diego
Diego
6% 6%Dallas
Dallas
5% 5%Austin
Austin
4% 4%Seattle
Seattle
3% 3%Houston
Houston
3% 3%Denver
Denver
3% 3%Pittsburgh
Pittsburgh
22%22%
Other
Other
Based
Based
on the
on percentage
the percentage
of hotel
of hotel
EBITDA
EBITDA
for for
the twelve
the twelve
months
months
ended
ended
December
December
31, 2023
31, 2023
Also in Sunnyvale, Intuitive Surgical, another one of our top accounts, is meaningfully expanding its campus,
building another 1 million square feet of office space proximate to our hotels. Lastly, Google   s expansion into San
Jose Downtown was delayed, but we   re benefiting as they continue to expand their Caribbean campus in
Sunnyvale. Consequently, travel demand is growing and is promising for 2024 and beyond. Chatham has the
highest exposure to Big Tech hotel demand of all lodging REITs, and our hotels stand to outperform.



shareholder letter icon 4/2/2024 Letter Continued (Full PDF)
 

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