Pulling first-quarter and 2020 guidance due to the effects of the coronavirus outbreak on the travel industry could become a trend for hotel companies and lodging real estate investment trusts. Hyatt Hotels Corp. pulled its guidance last week. Pebblebrook Hotel Trust on Monday pulled its 2020 guidance. On Tuesday, Chatham Lodging Trust, a lodging REIT with 134 hotels owned wholly or through joint ventures, did the same.
In its Feb. 26 earnings report, Chatham had anticipated first-quarter revenue per available room growth of between negative 2 percent to negative 0.5 percent, and full-year RevPAR in the range of negative 1.25 percent to positive 0.25 percent. Net income was expected in the range of $19.6 million to $23.5 million.
"Since the time this guidance was provided, the company has seen a significant increase in customer cancellations and softer travel trends," the company said in a statement. "While Chatham's February hotel room revenue outperformed its expectations by $0.1 million, the company believes that the impact from Covid-19 most likely will result in the company not achieving the previously provided guidance for net income, RevPAR, adjusted EBITDA, adjusted FFO and adjusted FFO per share."
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