Please go ahead.

Thank you, Operator. Good morning everyone and welcome to Chatham Lodging Trust First Quarter 2014 Results Conference Call. This morning, before the opening of the market Chatham released results for the first quarter of 2014 and I hope you’ve had a chance to review the press release. If you did not receive a copy of the release or you would like one, please call my office at 703-435-6293 and we’ll be happy to email you one. Or you may review the release online at Chatham’s website www.chathamlodgingtrust.com. Today’s conference call is being transmitted live via telephone and by webcast over Chatham’s website and its streetevents.com. A recording of the call will be available by telephone until midnight on Friday, May 16, 2014, by dialing 1-800-406-7325, reference number 4681158. A replay of the conference call will be posted on Chatham’s website. As a reminder, this conference call is the property of Chatham Lodging Trust and any redistribution, retransmission or rebroadcast of this call in any form without the expressed written consent of Chatham is prohibited. Before we begin, management has asked me to remind you that in keeping with the SEC’s Safe Harbor guidelines, today’s conference call may contain forward-looking statements about Chatham Lodging Trust, including statements regarding future operating results and the timing and composition of revenues amongst others, except for historical information, these forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially, including the volatility of the national economy, economic conditions generally, and the hotel and real estate markets specifically, international and geo-political difficulties or health concerns, governmental actions, legislative and regulatory changes, availability of debt and equity capital, interest rates, competition, weather conditions or natural disasters, supply and demand for lodging facilities in our current and proposed market areas and the company’s ability to manage integration and growth. Additional risks are discussed in the company’s filings with the Securities and Exchange Commission. All information in this call is as of May 08, 2014 unless otherwise noted, and the company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations. During this call, we may refer to certain non-GAAP financial measures, such as EBITDA and adjusted EBITDA, which we believe to be common in the industry, and helpful indicators of our performance. In keeping with SEC regulations, we have provided and encourage you to refer to the reconciliation of these measures to GAAP results in our earnings release. Now, to provide you with some insights into Chatham’s 2014 first quarter results, allow me to introduce Jeff Fisher, Chairman, President and Chief Executive Officer; and Dennis Craven, Executive Vice President and Chief Financial Officer. Let me turn the session over to Jeff. Jeff?

Great Chris, thank you and good morning everyone. Well, it’s a great day here for Chatham we think and our shareholders. We’ve got a lot to talk about today, obviously you’ll hear some excitement in our voice because you know we’ve worked lot and hard to try to arrange a transaction that we think is you know has beneficial as it is to our shareholders on all fronts frankly. We produced another great quarter financial results and are really excited as I said to announce what we think is a real transformative deal having reached agreement to apply of the Innkeepers hotels through two meaningful investments. First we will acquire 47 or 51 Innkeeepers hotels in a joint venture with Northstar Realty Finance, a premier publicly-traded diversified commercial real estate investment trust an asset management company with $11 billion of commercial real estate assets under management. Needless to say, we’re thrilled to partner with Northstar. We’ve as you know we’ve had a great experience thus far working with them and we certainly look forward to a profitable relationship as we move forward. Additionally, in the second part of the transaction, Chatham will acquire outright four Residence Inns in the heart of Silicon Valley for its own balance sheet. Upon closing of these transactions we will issue a press release providing updated guidance and other key information and also hold an investor conference call to speak in more detail about the transactions. So we’re going to take this from you know from a probably more 30,000 foot level than most of you would expect with the transaction like this but we want to emphasize deal is not closed yet but you know we are under firm contract here and we will tell you much much more including putting slides on our…

Thanks Jeff. Great to be with everyone today and sharing the exciting news that we have been working on for quite sometime with respect to the joint-venture with Northstar and the acquisition of the Florida hotels. For the first quarter, we reported a net loss of $1.7 million or $0.07 per diluted share, compared to a net loss of $1.6 million or $0.10 per share in the 2013 first quarter. Ont time expenses of $1.2 million were incurred in the quarter related to the HG Vora shareholder proxy settlement and the unsolicited offer from Blue Mountain Capital Management. As Jeff spoke, RevPAR was at 7.8% versus our previous guidance of 3 to 4%. February and March RevPAR growth really came on strong at plus 10 and plus 9% respectively after a moderate 4% growth in January. With strong topline revenue growth and a continued margin expansion combined with continued lowering of our borrowing cost, we’ve been able to significantly expand FFO of 66% to $7.4 million and FFO per share rising almost 10% to $0.28 per share which came into the operating of our guidance, and we generated flow through of 50 to 60% versus the 40% that Jeff spoke to earlier our margins would have come in at the upper end of our guidance range and EBITDA and FFO per share would have been $0.5 million and $0.02 per share higher. In addition to the increased utility and harsh winter cost, the fact that occupancy made up more than half of our RevPAR in the first quarter it does impact flow through potential. Adjusted EBITDA for the company rose 41% to $13.2 million in the quarter. In the quarter, the joint ventures between both the Innkeeper joint venture and our Torrance joint venture contribute approximately $2.3 million in adjusted…

Thank you. (Operator Instructions). One moment please. And our first question comes from the line of Gaurav Mehta with Cantor Fitzgerald, please go ahead.

Thank you, good morning.

Good morning, how are you?

Good. Couple of questions on the four assets that you are acquiring. So you decided to buy these four assets out of the 50 run hotels that were in the JV. Can you talk about why in four hotels and then did you look at some other hotels as well?

Yeah, I think that this is Jeff, hi. We really you know overall trying to meet you know I think what Northstar’s needs are and ours. So these assets represent probably a lower cap going in you know than the 47 to some extent. But most importantly require development and expansion capabilities and frankly the willingness to take some rooms out of order and in the near term suffer some earnings hit as a result of taking those rooms out of order, because these are hotels that run in excess of 80% occupancy. So you know probably just simply better suited for us you know being a pure hotel REIT and frankly you know we are having the expertise, the ability and the desire to do that work as compared to Northstar.

Okay and then you talked about financing these hotels with fixed rate debts and [LOC]. Can you talk about what’s the breakdown between LOC and mortgage debt?

We are still working through the mix of that. I think generally speaking you know what we’ve been doing and you know in all the rooms that we’ve been putting in place is debt you know that 10-year fixed rate debt kind of in the loan to value ratio somewhere between 55 and 65%. You know I think generally speaking that’s where there is a fall out.

Okay and then last question I have is on RevPAR so yeah 7.8% in 1Q and then your 2Q guidance is 7 to 8, but if I look at 2014 guidance it’s 6% at midpoint. Are you underwriting any kind of slowdown in the second half or its outside of the seasonal variation.

We do have, when you look a the fourth quarter, fourth quarter is a little bit lower, Gaurav. When you look at the breakdown it’s basically kind of 7% to 8% second quarter, 6.5% to 7.5% third quarter and around 4% to 5% in the fourth quarter. You know our visibility is not quite as strong for the fourth quarter. You know I think kind of given where the trend is, you know we hope to outperform that number you know that we haven’t formally adjusted that for our guidance.

Okay. Great. That’s all I have. Thank you.

And our next question comes from the line of Nikhil Bhalla with FBR. Please go ahead. Nikhil Bhalla – FBR: Yeah hi, thank you and hi Jeff and Dennis. Just a question on the new JV here. Is there another promoted structure in place in this new JV with NRF similar to what you had before with Cerberus?

Yeah and we’ll talk more about that Nikki on the next call. We’ll get in a little more detail, but yes, I mean an advantage is rolling our equity, maintaining our 10.3% in those great assets with strong cash flow and having a new promoted structure in place.

Okay, that’s good. And in terms of EBITDA from the West Coast with the four hotels included, how much of a EBITDA will come from the West Coast now/

As a percentage. There you go, alright I actually got that. It looks like you are going to have roughly 47% of our EBITDA from the West Coast, 40% California and around 28% from Silicon Valley but after the expansion, I mean assuming a static portfolio more like 35% in Silicon Valley. So you know look that market that market is strong as you know and we’ll talk a little bit more about you know the supply demand fundamentals and what’s going on there in our next call.

Just a follow up question there on that Jeff. You know you look at San Francisco RevPAR of course it’s been gang busts, right. And I mean are these assets it kind of do they do somewhat similar types of growth rates versus what you see in the San Fran market a little bit lower. You know how do they track versus that area?

Yeah, I mean its Nikhil a – fairly comfortable for the last couple of years the market has been double digit RevPAR growth it’s once again pretty strong this year as well in that same double digit range. So it compares very favorably to the San Fran market.

Okay. That’s all I have. Thank you very much.

Allright.

Thank you.

(Operator Instructions) And I’m showing no further questions in the queue. Please continue.

All right. Well, we appreciate everybody listening today and we look forward to closing this transaction and reporting back with some further detail as specifically as been I think the accretion as Dennis was alluding to because you got to consider the role of the equity and the result of the acquisition in the hotel with that in essence that promote resulting in a very substantial efforts should result in a substantial FFO increase and EBITDA increase. Well we are confident, additionally business was good. Second quarter was good, and ofcourse in our hotels there is no long booking window so you know you don’t have as Dennis indicated, huge visibility but you know there is very little new supply here in the markets that we’re in. So we look forward to frankly I think that’s very good 2014. And we look forward to reporting back further with good results on our next call

Ladies and gentlemen that does conclude our conference for today. You may now disconnect.