Chatham Lodging Trust (NYSE: CLDT) today announced that due to uncertainty related to the impact on travel arising from the COVID-19 virus outbreak, the company is withdrawing its first quarter and full-year 2020 guidance.
In conjunction with Chatham’s release of Q4 2019 earnings on February 26, 2020, Chatham provided first quarter and full-year 2020 guidance for certain operational and earnings metrics. Included in this guidance was approximately $0.2 million of lost revenue from customer cancellations due to COVID-19. Since the time this guidance was provided, the company has seen a significant increase in customer cancellations and softer travel trends.
While Chatham’s February hotel room revenue outperformed its expectations by $0.1 million, the company believes that the impact from COVID-19 most likely will result in the company not achieving the previously provided guidance for net income, RevPAR, Adjusted EBITDA, Adjusted FFO and Adjusted FFO per share.
Jeffrey H. Fisher, Chatham’s president and chief executive officer, stated “As we continue to closely monitor the impact of COVID-19 and manage our business accordingly, we are working expeditiously with Island Hospitality to implement plans designed to minimize the impact on the top- and bottom-lines, as well as net cash flow. COVID-19’s impact on travel is evolving rapidly, and our visibility to assess the magnitude and duration of the financial impact is limited. Because of our limited visibility, we believe it is appropriate at this time to withdraw our guidance. Our management teams at both Chatham and Island have meaningful experience working through these situations, and we will rely on that experience to minimize the adverse effects.”