Good day. And welcome to the Daly Gray Public Relations’ Chatham Lodging Announces Fourth Quarter Earnings Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Chris Daly. Please go ahead.

Thank you, Christy. Good morning, everyone. Welcome to the Chatham Lodging Trust fourth quarter 2014 results conference call. This morning, before the opening of the market, Chatham released results for the fourth 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 more than happy to email you one, or you may view the release online on Chatham’s website, www.chathamlodgingtrust.com. Today’s conference call is being transmitted live via telephone and by webcast over Chatham’s website and at streetevents.com. A recording of the call will be available by telephone until 2 p.m. Eastern on Tuesday, March 3rd, 2015, by dialing 1 (888) 203-1112, reference number 7528365. 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 in the hotel and real estate markets specifically, international and geopolitical 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 Commissions. All information in this call is as of February 24, 2014 unless otherwise noted, and the company undertakes no obligation to update any forward-looking statements 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 reconciliations of these measures to GAAP results in our earnings release. Now, to provide you with some insight into Chatham’s 2014 fourth 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 over the session to Jeff. Jeff?

Thanks. Good morning, everyone. Before we look forward, I think it’s worthy of note to think that to what more than 12 months ago that we were closing out what was a very strong 2013 for Chatham, arguably the best year since our IPO and here we are again today closing out 2014, which will go down certainly as a year filled with some very significant accomplishments and huge I think growth in many respects for us. First just to kind of recap back for a moment. We essentially doubled our equity market cap to a $1 billion propelled by our shareholder return of 47%. The addition to the RMZ in May and accessing public markets to raise approximately $155 million in 2014 through an overnight offering in the use of our ATM share program. Our operating results were outstanding with EBITDA and FFO growing 64% and 75% respectively and FFO per share jumping 28%. Accordingly, we rewarded our investors with a 25% jump in dividends per share. We consummated to recap of the Innkeepers JV, crystallizing a tax free gain of approximately $80 million on our original $37 million investment. We then turned around in tax free manner and acquired four fantastic Residence Inns in Silicon Valley, in essence investing that $80 million with zero cost of capital at a little over a seven cap going in. We significantly increased the size of our investment portfolio last year, making investments of approximately $500 million easily our largest year ever through the acquisition of nine hotels for approximately $450 million and the investment in the two JVs of approximately $50 million. These investments maintain our earnings growth momentum with FFO per share expected to grow by approximately 25% in 2015. And I want to emphasize that number is without and…

Thank you, Jeff. Good morning, everybody. For the fourth quarter, we reported a net loss of $5.3 million or $0.16 per diluted share, compared to a net loss of $0.1 million or $0.01 per diluted share in the 2013 fourth quarter. Adjusted FFO for the quarter was $12.7 million. The primary differences between net income and FFO relate to the non-cash cost such as depreciation, which was $10.7 million in the quarter, expenses related to the Innkeepers joint venture of $1 million and acquisition cost of approximately $3 million, related to the inland joint venture transactions. Additionally another reconciling item between net income or net loss and adjusted FFO is our share of those particular items within the joint ventures and in the quarter that was $3.3 million. Fourth quarter RevPAR was up 6.5% to $112 within our guidance range of 5.5% to 7.5%. As Jeff spoke to earlier, our Homewood Suites in Maitland was adversely impacted due to the significant displacement related to the replacement of the copper water supply lines, providing water throughout the hotel. At various times throughout the fourth quarter, we had as much as 50% of the hotel out of service and consequently RevPAR at the hotel was down almost 50% in the fourth quarter. The expected replacement of the copper wire -- the copper water supply lines is expected to be completed here within the next couple of weeks. Almost all of our markets have performed strongly over the year with essentially half of our 34 hotels seeing double-digit RevPAR growth throughout 2014 and as we've spoken about previously really the only challenging hotel that we knew would be in 2014 we bought was the Hampton Inn in Portland Maine, which saw new supply coming into the Downtown market. Having said that, it actually…

[Operator Instructions] And we’ll take our first question from Anthony Powell with Barclays.

Hi good morning, everyone.

Good morning Anthony.

Question on Houston like you mentioned Houston was a bit weaker in the quarter, could you elaborate on that and explain what different segments maybe underperformed, business trends you had longer term stay. And I believe you also when you mentioned your 2015 markets you did not include Houston as a weaker market. So are you seeing any improvement in there or how do you look at Houston going forward?

Yeah Anthony this Dennis, I think first to talk about 2015, with respect to the four Houston hotels, they certainly in the latter part of the fourth quarter and even early part of the 2015 first quarter, there’s been some weakness. But when we actually look at those four hotels especially once you get past February, we've got -- we see double-digit RevPAR growth in those four hotels already basically on the books for March, which I think we believe that the market again a little bit of over reaction with the company certainly cutting back travel in the short-term we do believe that, that will change and behavior will modify a little bit as we get through 2015. So we don’t think it’s going to be all doom and gloom there for the full year. For the four hotels, we’re projecting RevPAR growth in the range with the overall portfolio 5% to 7%, but yes, we did see some weakness in the fourth quarter and some weakness to start the year, but that has improved in the last few weeks.

All right just have a follow-up on that one and so we’re seeing cancellations I guess in the fourth quarter. And do you expect those cancellations increase or decline as you go along?

Well like I said for -- at least we don’t have an outlook in our hotel base that goes six months down the road, we can tell you what fairly short-term in the next 45 days. What we can tell you is that the trends do appear to be improving beginning like I said was kind of with March. So we’re confident that we will start to see better results there.

Let me just add one thing Anthony, we want to focus also that of course the two hotels that are right in the middle of the medical center as we look at top 10 or even 20 accounts in those hotels, we do not see oil and gas names. The two new hotels that we acquired Residence Inn and the Courtyard at West University we do have 10% or 15% of the business let’s say attributable to names like Chevron, Shell etcetera. And you got a little bit obviously of less production coming from those accounts in those hotels and with compression generally being in a market that has been growing at double-digit as you know generally speaking. So you will get less compression and therefore less fill nights and that’s probably what was starting to be experienced at the end of last year in the January and February, Dennis is referring to our on the books revenue pace. And I’ve got that sheet in front of me here and it’s certainly for the two medical center hotels are on the books number compared to the same exact time last year is up substantially from the prior year and the two West University hotels are kind of flattish to down just a little bit. So we’re going to have to obviously like other companies watch the developments when you’re in a limited service hotel business or upscale extended stay hotel business we do not as you know have long booking windows. So all we really are going to do is look at the next month’s booking pace for the most part.

Okay, very helpful. Thank you. And on the San Diego deal, have you provided a cap rate or a purchase multiple on that transaction? And also have you allocated the $90 million between the hotel and the retail and the parking garage. That’s all from me. Thank you.

Yeah, we haven’t talked about – yes, we will -- we do expect to close it in the next week. We’ll tell you that we on a underwritten basis, we think the year one cap rate is about 7.6%. We will be sending out the press release here within the next week, we typically disclose that cap rate so comfortable putting that out there in this point in time. We haven’t gone through the process of allocating the value throughout the retail and the garage components to the breakout of the $90 million but we’ll provide that as part of the release.

And we’ll go to our next question Gaurav Mehta with Cantor Fitzgerald.

Yeah hi, good morning.

Good morning, Gaurav.

Yeah, on the $0.09 dilution that you mentioned in the guidance to be temporary, can you comment on the timing of new acquisition that you're expecting in 2015?

Of our pipeline closing deals.

Of the pipeline…

We generally don’t as you know comment specifically, because we don’t want people all a sudden to start swatting in number quarterly for acquisition assumptions, but like Dennis said, here starting off the year with a $90 million acquisition and with a pipeline that probably altogether at least as of now has a couple of $100 million overall in it, I would certainly think that early as we said, let’s just say or sometime early to mid 2015 we should have more acquisitions to talk about, but we got some more work to do on these deals as well.

And then how many assets what -- how many assets can you acquire using the proceeds from the upside offering and remaining within your target leverage level?

Yeah, Gaurav, we I think to put at pencil $200 million, I think that’s where we would sit here and tell you that’s our goal for the next few months is to try and do some decent deals adding up to somewhere around that number that will put our leverage level around 47%, which is very manageable.

Okay, and lastly you mentioned that you’re seeing a deepened quality acquisition pipeline. Can you comment on what kind of assets you're seeing in the market, is it mostly one-off portfolios or is it large portfolios that you're seeing?

There’s a little mix bag out there. There are no billion dollar portfolios such as 2014 started out with -- there is a few $200 million to $300 million portfolios out there and then there’s some owners we’re talking to on a direct basis as always it’s our two-prong strategy for the one-off deal. The cherry pick deal like the gas lamp deal to start out with we have two or three of those that are being qualified now and talking about and so we still see the year as being a pretty good year on that front.

Great, that’s all I had.

Thank you.

[Operator Instructions] There are no questions in the queue at this time.

Well, I appreciate everybody being on the call again. And as I said, I certainly think we've got a unique hotel platform here at Chatham with our focus on premium branded upscale that is stay and select service hotels. And utilizing our very targeted kind of cherry picking locations that have strong underlying demand growth with infill locations in these urban sites outside of New York City. And again I think just looking at the Gaslamp acquisition absolutely exemplifies Ontario, state that we want to own here at Chatham. And you look back through 2014 at our one-off acquisitions whether it was the Residence Inn and Downtown Bellevue where we saw opportunity in taking that over where Marriott was managing that hotel and creating some upside there in moving around the mix of business in the hotels and in hotel which we’ve successfully accomplished and got some good strong RevPAR growth and earnings growth out of that location that’s fantastic. By the way we haven’t talked about Gaslamp deal again an opportunity to go from Marriott managed to Island managed, so we hope although Marriott has done a great job there, we hope to see some upside on the revenue side as we move to 2015 and that hotel in a strong market. So again I think the strategy both from an internal growth perspective and external growth perspective has certainly proven itself out. So we look forward again to continue to build on our past successes for this 2015 year and continue to grow as Dennis mentioned and enhance our cash flow as we move forward. Thanks everybody for listening today.