Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Chatham Lodging Trust Second Quarter Earnings Conference Call. At this time all participants are in a listen-only mode. Following the presentation we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions). I would like to remind everyone that this conference call is being recorded today August 6, 2013 at 11:00 AM Eastern Time. I will now turn the presentation over to Chris Daly, President of Daly Gray. Please go ahead, sir.

Thanks, John. Good morning everyone and welcome to the Chatham Lodging Trust second quarter 2013 results conference call. Yesterday, after the close of the market Chatham released results for the second quarter June 30, 2013, and I hope you had a chance to review the press release. If you did not receive a copy of the release or you would still 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 online at Chatham’s website, www.chathamlodgingtrust.com. Today’s conference call is being transmitted live via telephone by webcast over Chatham’s website and at streetevents.com. Recording of the call will be available by telephone until midnight on Tuesday, August 13, 2013 by dialing 1-800-406-7325, reference number 4630897. 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 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 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 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 August 6, 2013 unless otherwise noted, and the company undertakes no obligation to update any forward-looking statement to conform these statements 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 a reconciliation of these measures to GAAP results in our earnings release. Now to provide you with some insight into Chatham’s 2013 second quarter results, allow me to introduce Jeff Fisher, Chairman, President and Chief Executive Officer; and Dennis Craven, Executive Vice President and Chief Financial Officer. Without further ado let me turn the session over to Jeff?

Thanks, Chris. Well my usual enthusiasm might sound pretty bad compared to yours. But thanks for the intro this morning. And thank you all for joining us here again, happy to be back at our second quarter earnings call. Since our IPO in 2010, as you know, we’ve set out to build the premier lodging REIT making high quality hotel investments, generating strong earnings via high operating margins, facilitated through our aggressive asset management and producing significant cash flow to pay meaningful dividends to our REIT investors We know to build another successful lodging REIT that we have to be patient and grow as equity and debt markets allow and where proceeds can be used to purchase value enhancing hotels. We also know we have to be patient as we analyze growth opportunities to determine the best deals to consummate. We have executed very well on our strategic initiatives to-date and the result is an investment portfolio that produces high FFO per share, high operating margins and allows us to pay one of the best dividends in the lodging space. I am real pleased with the hotels that we have acquired to-date and particularly the hotels that we’ve been able to buy in 2013. I am going to shed some light on some of the performance of those assets. Just to highlight I think how well our patience have paid off in so far as targeting specific assets with specific owners, almost all in direct relationship purchases that really have produced I think some great cash flow and dividends for the company and will continue to do so going forward. In pursuit of our continued growth as a premier lodging REIT during the second quarter we had a very successful offering in June raising approximately $80 million at a price…

Thanks Jeff and good morning everyone. For the first quarter, we reported net income of $2.2 million or $0.12 per diluted share, compared to a net income of $1.2 million or $0.08 per diluted share in the 2012 second quarter. First quarter RevPAR was up 2.6% to $101 for the 20 hotels open for the entire quarter compared to our prior earnings guidance of 2% to 3% growth. Excluding our unbranded D.C. hotel, our RevPAR was up 6.1% on an increase in rate of almost 6%, and a 0.4 increase occupancy to 83.5%, up 30% basis points. RevPAR performance for the industry was 5% for the quarter and so of course we are very pleased to put up some good numbers above industry averages in the quarter. RevPAR at D.C. Hotels Jeff alluded to was down 38.8% in the quarter as we complete the renovations to the rooms in anticipation of our conversion to a Resident’s Inn from September 1st Adjusted EBITDA for the company rose almost 15% to $13.7 million with the jump attributable to the acquisitions that we made in late 2012 and 2013 as well as improving margins and the outstanding performance within our joint venture. During the quarter the joint venture contributed approximately $2.1 million of adjusted EBITDA to Chatham. Adjusted FFO jumped significantly up 48% to $8.8 million, from the 2012 second quarter of $2.9 million of FFO. On a per share basis FFO per share rose approximately 12% to $0.48 in 2013 compared to $0.43 in 2012. Excluding the impact of the June offering as well as the Pittsburg acquisition adjusted FFO per share would have been approximately $0.50 per share within the original guidance that we had provided for the quarter of $0.49 to $0.51. In addition to our strong operating performance the…

Thank you. (Operator Instructions). Your first question today comes from Felicia Hendrix with Barclays. Please go ahead.

Hi, guys. This is Justin in here for Felicia. We just had the question regarding the pro-note. Given how well the J.V. is doing we’re trying to put a potential value on that. We are estimating maybe $1 to $2 per share wondered if you may tell us if we are in the ballpark there. And also you maybe you could discuss how you guys are thinking about valuing the pro-note.

Yeah, I think from—yeah, we gave guidance back in February and you may not have been on the call. But we did a lot to adjust the general financial metrics of the joint venture. And when we look at hotel EBITDA of about little over 100 million for 2013 if you look at the select REITs, select REIT are trading at around 13 times, 2013 EBITDA, you come with certainly a portfolio value, we currently have little less than the $100 million of debt. So you get some nice equity value there, of little over 500 million. The form of that pro-note is intended for us to increase our participation from our current 10% interest to upwards of 20% assuming certain returns are met. So certainly we believe that I think people can infer whatever value they want from that. But it’s certainly not been down the road I think we all know that it’s a meaningful piece of our equation.

This is Jeff. One thing that we’re going to do because this question for some reasons seems to becoming more and more popular, and more interesting I think to a lot of analysts and shareholders and rightfully so because this investment has proven to be a home run for us. So there is refinancing as Dennis indicated. When the refinance closes we will put out a release and talk a little bit more in detail about our interest in this investment. We’re obviously not going to or can’t value this thing for you. But I think what we can do is put some specificity around the pro-note structure. The pro-note structure we’ve almost declined to comment on. But in fact has been filed as part of a 10-K was a 2011 10-K of course. So therefore it’s out there for the world to see anyway. And we’ll talk about that a little more specifically and how that plays on the numbers. But only good news there, thank goodness.

Okay, great. Thanks guys.

Your next question comes from the line of Nikhil Bhalla with FBR. Please go ahead. Nikhil Bhalla – FBR Capital Markets & Co.: Yeah, hi. Good morning everyone. Just – hi, good morning. You talked about the Hampton Inn purchase. Would you give us some sense of what the going in yield is on that asset, and how that asset came about or why this particular asset versus some other asset. Thank you.

Yeah, again Nikhil this asset, no broker very similar circumstance and frankly came from more or less the same individual that we worked with our Hilton relationship up in the Northern United States particularly. I’ll tell you little more the New England region. So hotel is once again, so I think we’re hitting on all cylinders although it’s not our only acquisition criteria. But it’s essentially brand new. And it is an opportunity for an owner to recycle some capital to where he needs it somewhere else and for us to get a hotel that opened late 20 – that one opened 2011 and looking forward to normal ramp-up of the hotel, obviously no CapEx and a little bit smaller market but a market that should continue to provide good growth going forward. No broker again. Nikhil Bhalla – FBR Capital Markets & Co.: Got it. And in terms of overall margins is that very comparable to what you’re seeing in your portfolio right now?

Yes. Nikhil Bhalla – FBR Capital Markets & Co.: Okay, and then just a follow up question on the acquisition. Dennis, I think you gave a very good outline of what you expect in terms of acquisitions going forward. Any sense of are these more near term or is this over the next 12 months? Just any idea, maybe even some color on markets. Thank you.

So let me just – I think markets will continue to be similar markets to what we’ve been in. But I would look for an underlying characteristic of good market growth, good comp set growth. So that’s important to us because there are some markets in the United States obviously that are having lower single digit growth and there is some markets with mid-single and upper single digit growth and perhaps double digital growth. So we’d like to see that together with our value enhancement that I talked a little bit about, important acquisition criteria for us as well as barriers to entry. That money as we’ve said should probably be invested mostly by Labor Day if not no later than 30 days, after Labor Day. So no significant drag on earnings resulting from the offering with good fourth quarter, hopefully additional accretion coming from these new acquisitions. Nikhil Bhalla – FBR Capital Markets & Co.: Thank you. So in effect we should think of more acquisitions coming in our way sometime before – let’s all – end of September or maybe October timeframe somewhere.

Yes sir, at the latest. Nikhil Bhalla – FBR Capital Markets & Co.: Thank you.

Thank you. Your next question comes from the line of Patrick Scholes with SunTrust. Please go ahead. Patrick Scholes – SunTrust Robinson Humphrey: Hi, good morning.

Good morning. Patrick Scholes – SunTrust Robinson Humphrey: I am doing well, thank you. Wonder if you can talk a little bit more about the Pittsburgh market. It’s not a market that is covered by in the top 25 for Smith Travel. So we don’t give a lot color on that. I just see that it look there is going to be some supply coming on next year. But I want to get your thoughts about the sort of demand and supply drivers as you see them for Pittsburgh. Thank you.

Yeah, Pittsburgh is an interesting market. Because it’s not on everybody’s radar screen which makes it kind of interesting to us. And particularly with the benefit of having the IA exchange being able to do the due diligence and the ground work to understand what drives the market, it’s hard to talk about Pittsburgh as one market. Pittsburgh has three or four different or more, almost half a dozen different very distinct sub markets in it. With the downtown Jack Town market obviously being as most downtowns are its own market. The Hyatt Place is driven very strongly just by its fantastic location on the river front in this newly developed stadium area, entertainment art, museum et cetera locations with lots of bars and restaurants et cetera still to come. So good growth coming there with Fortune 500 companies in the area or directly across the small little bridge that you can walk across. But there is other markets in Pittsburgh like [South Point] which is a large office park that many of the national shale oil companies that are obviously doing shale work in Western Pennsylvania have chosen this particular location for their regional headquarters. So they’re opening up very large facilities and employing a lot of people with a good amount of travel. So again shale, oil, natural gas is obviously a driver in the entire area but then you have to look at specific markets – sub markets within there and see where you might be insulated from new constructions. Because there is opportunity to build there in certain places the terrain obviously is a huge disadvantage to the [inaudible] just because it’s so up and down and tough to find or make even a flat hotel site. But and any of that we find it interesting. Patrick Scholes – SunTrust Robinson Humphrey: Great. I appreciate the color. Thank you.

Your next question comes from (Christopher Testa with Boston Providence). Please go ahead.

Hi, good morning

Good morning.

I was wondering if you guys could give some color on how much of the RevPAR composition in your newly acquired hotels is from ADR and occupancy?

Let’s take a peak year, looks like quite at all ADR, pretty much – excuse me that was yeah.

Okay, so all ADR and just…

Actually. Yeah, we’ve got in one of the hotels some occupancy growth but it’s mostly ADR.

Okay and generally in the Texas markets could you give some color on what you are seeing in cap rates in Houston as compared with the rest of Texas?

We are not really looking actively in parts of Texas outside of Houston. So I don’t think I can really give you the right answer there. And anybody that owns anything in Houston to honest with you, based on what’s happening in the market with double digit market growth, you know in some cases I know our comp set around the Houston Medical Center is up very substantially, not even including what we’ve done to the hotels to make them better. So mostly we don’t want to sell.

Okay, thank you.

Right.

(Operator Instructions). Your next question on the line comes from Rob Salisbury with V3 Capital. Please go ahead. Robert Salisbury – V3 Capital: Okay good morning Jeff and Dennis.

Hi Rob. Hey what’s going up? Robert Salisbury – V3 Capital: Good thanks. So I had just quicker numbers question on guidance for you guys. Looking at the adjusted EBITDA range of 48.6 million to 49.6 million for 2013 I was hoping you guys could help us understand what this range will look like if we remove the renovation disruption and then if we annualize all the acquisitions that have been done to-date. I guess what I am trying to get out is excluding any prospective acquisitions what the appropriate run rate earning days from which we should grow our models into a 2014 and beyond thanks.

Yeah I certainly can walk through a lot of the details with you after the call but I think when we provide a guidance of and that guidance when we talked about our run rate of a $1.65 to a $1.75 just on top of what our current – what our current model is I think a couple of key points is if you look at our D.C. Hotel for the year it’s had about to 2 to 2.5 point impact on our topline RevPAR growth. For us that’s another $1 million of EBITDA to the company which is about $0.05 for us. I think that certainly is most of we’ve got the Hyatt Place. I don’t have that annualized numbers in front of me. But I can certainly take a look at that and give you a call back to see what the impact would be of having that for the first five and half months. But I think those are the two main adjustments that you should make, that should help with the run rate for 2014. But I can certainly look at the Hyatt deal after our call. Robert Salisbury – V3 Capital: Okay that’s great thank you.

There seems to be no more questions at this time. I will not turn the call back over to management for any closing comments.

We’d just like to thank everybody for been on the call and continue following Chatham here. We are looking forward to a strong particularly as I look and think about 2014 although maybe it’s little too earlier to think about 2014. We know that in the fourth quarter we’ve got some top sandy comps to deal with as a few other hotels companies do, that had hotels in the Northeast. But we’ve got in few in one particular hotel out Long Island and off-course White Plains in New Rochelle that had a great, great fourth quarter 2012. But be that as it may with no renovations to deal with as we move forward here and D.C. particularly ramping up and I think Tysons at least flattening out if not finding some legs, RevPAR and EBITDA growth ought to be real strong for us going forward. We look forward to talking to you little bit more about some acquisitions that we see coming online here in the near term and we wish you great rest of the summer. Thank you.

Ladies and Gentlemen that does conclude the conference call for today. We thank you for your participation. You may now disconnect your lines.