Chesapeake Lodging Trust (NYSE: CHSP), a lodging real estate investment trust (REIT), provided an update yesterday on its financial results for the quarter ended June 30, 2016. The Trust expects RevPAR to increase 2.2% on a pro forma basis and Adjusted Hotel EBITDA, Adjusted Corporate EBITDA, and AFFO per share to be near the midpoint of the guidance ranges previously provided. The preliminary results are subject to adjustments that may result from the completion of the Trust’s quarterly review and close process. The Trust intends to release final financial results for the second quarter 2016 and provide an updated 2016 outlook before the market opens on July 29, 2016.
“Our hotel portfolio’s pro forma RevPAR increase of 2.2% for the second quarter 2016 came in below our outlook provided in April as a result of a slowdown in demand from corporate transient customers across our portfolio associated with the generally softening macroeconomic conditions we are seeing in the U.S. and abroad. We see these headwinds continuing as we start the second half of 2016,” said Mr. Francis. “We are aggressively asset managing our hotels and working closely with our hotel operators to mitigate the current environment. These efforts resulted in our hotel portfolio gaining market share during the quarter, as well as our expectation of meeting our previously provided guidance ranges for EBITDA and AFFO per share.”
Adjusted Hotel EBITDA, Adjusted Corporate EBITDA, and Adjusted Funds From Operations (AFFO) are non-GAAP financial measures within the meaning of the rules of the Securities and Exchange Commission. For further information on these non-GAAP financial measures please see the Trust's press release dated April 28, 2016.
Chesapeake Lodging Trust is a self-advised lodging real estate investment trust (REIT) focused on investments primarily in upper-upscale hotels in major business and convention markets and, on a selective basis, premium select-service hotels in urban settings or unique locations in the United States. The Trust owns 22 hotels with an aggregate of 6,694 rooms in nine states and the District of Columbia.
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