Good day, and welcome to the Chatham Lodging Trust Third Quarter Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Chris Daly. Please go ahead, Sir.

Thank you, Sabrina. Good morning, everyone. Welcome to the Chatham Lodging Trust third quarter 2015 results conference call. This morning, before the opening of the market, Chatham released results for the third quarter 2015, 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 a copy. Or you may review the release on line on Chatham's website, chathamlodgingtrust.com. Today's conference call is being transmitted live via telephone and by webcast over Chatham's website and at www.streetevents.com. A recording of the call will be available by telephone until 1 PM Eastern on Thursday, November 12th, 2015, by dialing 1-888-203-1112, reference number 714928. A replay of the conference call will also 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 express 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 revenue, among 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 market 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 Commission. All information in this call is as of November 5, 2015, 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, these reconciliations of the measures to GAAP results in our earnings release. Now, to provide you with some insight into Chatham and 2015 third quarter results, allow me to introduce Jeff Fisher, Chairman, President, and CEO; Dennis Craven, Executive Vice President and COO; and Jeremy Wegner, Senior Vice President and CFO. Let me turn the session over to Jeff Fisher. Jeff?

Okay Chris, thanks. Morning, everyone. Thanks for being on the call. It's certainly been a very interesting 2015 for lodging companies. Lodging equity markets have been volatile, to say the least, over the past few months and lodging stocks, for the most part, are down significantly from lodging highs earlier in the year. Conversely, industry fundamentals remain very healthy, with year-to-date RevPAR growth of 6.7%, demand up 3%, and new supply up only 1%. Some of the largest full-service lodging companies have been reporting RevPAR growth in the low single digits, while many of the REITs with more select service characteristics are experiencing better growth. We certainly seem to be at a point where investor perception is different from reality and we certainly aren't pleased with our current share price given the strength of our assets and growth in our markets. But one thing we learned a long time ago was not to lose focus of our goal to own the very best, select service assets in the United States that will generate long-term returns and dividends for our investors. Chatham's fundamentals remain strong, our high-quality portfolio of premium branded upscale extended stay and select service hotels is generating and bringing attractive RevPAR growth driven entirely through increased rates without sacrificing any occupancy. Our hotels are perfect for the corporate traveler who demands a quality room in a great location. With an average rate of almost $160, we are able to continue to drive margins higher, especially considering how hotel cost structure isn't saddled with the burdens of food and beverage departments and other nonessential amenities that erode profits in addition to rising labor costs resulting from ever-increasing union issues. Chatham's outlook remains one of the best in the lodging REIT space; we're proud of that. In 2014, we invested…

Thanks, Jeff. Good morning, everyone. I'm going to start by just walking through our earnings for the quarter compared to our guidance that we had issued back in August. Our RevPAR guidance for the quarter was 5% to 6% for all hotels and we ended up seeing growth of 5.3%, all attributable to an increase in rates. Jeff spent some time talking about our strong markets. I'm going to spend just a couple of minutes talking about a couple of the weaker markets for us, one of which was really our Pennsylvania hotels. The two western Pennsylvania hotels in Altoona and Washington, Pennsylvania, are primarily oil and gas-driven, and those two hotels are down approximately 12% in the quarter. RevPAR at our Hyatt Place in Pittsburgh -- again, not necessarily oil and gas-driven, but there certainly is some influence to the Pittsburgh market that was flat year over year. Across the three hotels we didn't lose any market share in terms of RevPAR index, but the market's certainly not the strongest at this point. One other weak market for us, which is a little bit of a change from the first six months of the year, was the DC market, where RevPAR at the Foggy Bottom and Tyson's Corner hotels was down about 2% in the quarter, and our comp sets RevPAR was down similarly. Again, no loss in market share but general market weakness. The two hotels were impacted by a loss of about 200 government room nights due to lost travel resulting from shutdown rumors, especially in the latter part of the third quarter. Our four Houston hotels are driven primarily by medical center business given that two of them are located directly at the medical center, and the other two are about two to three miles away…

Thanks, Dennis. Good morning, everyone. For the quarter, we reported net income of $14.4 million, or $0.37 per diluted share, compared to net income of $8.8 million, or $0.31 per diluted share, in Q3, 2014. The primary differences between net income and FFO relate to noncash costs, such as depreciation, which was $12.5 million in the quarter; hotel acquisition costs of approximately $0.6 million related to the acquisitions of the Dedham and Fort Lauderdale Residence Inns and Hilton Garden in Marina del Rey; and our share of similar items within the joint ventures, which were approximately $1.9 million in the quarter. Adjusted FFO for the quarter was $29.3 million compared to $20.1 million in the 2014 third quarter, an increase of 46%. Adjusted FFO per share was $0.76 per share versus $0.73 per share in Q3 2014. Adjusted EBITDA for the company was 38%, to $39.4 million, compared to $28.5 million in Q3 2014. In the quarter, our three joint ventures contributed approximately $5.3 million of adjusted EBITDA and $3.3 million of adjusted FFO, at the low end of our guidance of $3.3 million to $3.5 million. During the quarter, we will receive distributions of $2.1 million from the Innkeepers portfolio and $1.0 million from the Inland portfolio. Our balance sheet remains in excellent condition. Our net debt was $587 million at the end of the quarter and our leverage ratio was 41.2%. We're very comfortable at this leverage level and have the capacity to complete additional acquisitions without raising equity, although there are no acquisitions currently in the pipeline. Transitioning to our guidance for Q4 and full-year 2015, I'd like to note that it takes into account our planned renovations at the SpringHill Suites Savannah and the Homewood Suites San Antonio during the fourth quarter. We have amended our guidance to reflect actual performance in the third quarter and a reduction in RevPAR growth in Q4. We expect Q4 RevPAR growth to be 5% to 5.5% and the full year 2015 RevPAR growth to be 5.75% to 6%,. On a pro forma comparable same-store basis, including the Dedham, Fort Lauderdale, and Marina del Rey hotels, 2014 hotel quarter-by-quarter RevPAR was $113 in the first quarter, $131 in the second quarter, $139 in the third quarter, $114 in the fourth quarter, and $124 for the 2014 full year. Our full-year forecast for corporate G&A is $8.5 million, which represents a $100,000 decrease from our previous guidance. On a full-year basis, the three joint ventures are expected to contribute $17.1 million to $17.2 million to EBITDA and $9.5 million to $9.6 million of FFO. From a cash flow perspective, capital expenditures are expected to be $4 million in Q4 with $2 million related to our 2015 capital plan and $2 million related to the Mountain View expansion. I think at this point, Operator, that concludes our remarks and we'll open it up for questions. Operator? I think we'll open it up for questions. Hello, operator.

Yes. [Operator Instructions]. Okay, we'll now take the first question from Gaurav Mehta from Cantor. Please go ahead.

Yes, thanks. A quick question on transactions. As you look into the transaction market, do you expect the pace of acquisition to continue over next -- maybe 2016?

Hey, Gaurav. Good morning. This is Dennis. No, I think certainly at this point in time were pretty comfortable with our portfolio. I don't think, as far as from an acquisition standpoint, certainly we always would have our eyes open and be certainly looking for some opportunistic deals. But I think at this point, certainly given kind of where we are with the equity price and -- although we do have some capacity on our balance sheet, we certainly aren't targeting new acquisitions at this point in time. But we're just going to be optimistic. As we alluded to we may be opportunistic on the sales side, looking at one or two assets to sell, which would be a means of recycling some capital at that point in time.

Of course, we would always look at our own stock and the implied yield there. It goes without saying, we'll measure that against what returns we may find in the market to buy a hotel. And we, given where the world is today, would think our own stock would be a better investment, to be clear, than buying an asset.

Okay. And then, going back to the Silicon Valley redevelopment, can you remind us, once the additional rooms come on line, how much EBITDA would those expansions add in 2017?

Yeah, I mean I think, you're talking about total spend for the four hotels of approximately $80 million. We expect to generate still kind of upper teen level returns on those incremental dollars after financing. So it's certainly going to be, and I think we've disclosed in the past around $0.20 accretive on an FFO basis, on a full-year basis. So that still is the target.

Okay. And then lastly, going back to the RevPAR growth, can you discuss what you've seen so far in October as far as RevPAR growth is concerned?

Yes for our portfolio, for the Chatham portfolio, RevPAR was up about 5% for October. I think November and December seem to be, at this point, trending a little bit better than that. So I think that's the basis behind our 5%, 5.5% guidance.

Okay, thanks for taking my questions.

Thank you.

[Operator Instructions]. All right. Mr. Fisher, there is no question. Please continue.

Well, we appreciate, again, everybody being on the call. As I said, and I think Dennis has said, we certainly don't love our stock price here. We think that the fundamentals and RevPAR growth up mid-single digit and EBITDA and FFO growth of double digit certainly warrants a higher multiple for us and probably the group than currently exists. But we have seen these times before. We know how to make money in all parts of the cycle and we expect to continue to do that for our shareholders. Thank you.