Good morning, ladies and gentlemen, and welcome to the Chatham Lodging Trust First Quarter 2026 Financial Results Conference Call. At this time, our lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on May 7, 2026. I would not like to turn the conference over to Chris Daly. Please go ahead.

Hey, Gannis. Good morning, everyone, and welcome to the Chatham Lodging Trust First Quarter 2026 results conference call please note that many of our comments today are considered forward-looking statements as defined by federal securities laws these statements are subjects to risks and uncertainties both known and unknown as described in our most recent form 10k and other SEC filings all information in this call is as of May 7th 2026 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

You can find copies of our SEC filings and earnings release, which contain, excuse me, which contain reconciliations to non-GAAP financial measures referenced on this call on our website at ChathamLodgingTrust.com. Now, to provide you some insight in Chatham's 2026 first quarter results, allow me to introduce Jeff Fisher, Chairman, President, and Chief Executive Officer, Dennis Craven, Executive Vice President and Chief Operating Officer, and Jeremy Wegner, Senior Vice President and Chief Financial Officer. Let me turn our session over to Jeff Fisher.

All right, Chris, thank you very much. And I certainly appreciate everyone joining us here today on our call. It was really a great quarter, obviously, for us on every front, delivering for our shareholders. Given our strong operating results, great acquisition, and continued share repurchases, as well as improved outlook for the remainder of the year, we have increased our guidance by approximately 15% since February. On the corporate side, we increased our common dividend by 11% in the first quarter, following a 28% increase in 2025, with a common dividend to FFO payout ratio of only 32%. Based on our updated guidance, our dividend is well covered with ample room to continue growing in the future. We will reevaluate the quarterly dividend later this year. Also, we continue to aggressively repurchase shares using free cash flow. Through the end of the first quarter, the company has repurchased 2.2 million shares, or approximately 4% of our common equity, at an average price of $7.04, which equates to a 10% cap rate based on the updated 2026 guidance. At current share price levels, we're trading over a turn lower than our select service peers, current EBITDA multiple, which is not reflective of our financial strength or our upward trajectory of our portfolio, especially given the continued strength and increasing strength of our Silicon Valley recovery. We will continue to repurchase shares given the market disconnect. Externally, we've been executing a massively successful recycling campaign over the last couple of years, highlighted by the recently acquired portfolio of six high-quality Hilton-branded hotels comprising 589 rooms for $92 million that are immediately accretive to Chatham's operating margins, FFO, and FFO per share. The portfolio diversifies our geographic footprint into areas of the country that are benefiting from expanded investments in manufacturing and distribution. The hotels are generally the highest quality properties in their respective markets with an average age of only 10 years, and 66% of the portfolio's rooms are extended stay. The hotels benefit from very favorable labor dynamics and will enhance Chatham's already industry-leading hotel EBITDA margins. Performance since closing has been great, with the portfolio producing rev par growth of 6% in the first quarter and an even stronger 7% in April. Obviously, we're very excited about this acquisition. Operationally, it was a great quarter for us with RevPar, Hotel EBITDA margins, and Hotel EBITDA easily beating our expectations for the quarter. On a comparable basis, our Hotel EBITDA grew 5%, and our Hotel EBITDA margins gained 135 basis points. Facing difficult comps due to the significant amount of wildfire demand last year in our LA hotels, our RevPar went from a decline of 5% in January to growth of 1% in February and up 5% in March, finishing the quarter up 1%, which was well above our expectations for the quarter. Silicon Valley led the way with RevPAR growth of 23% in the quarter when you exclude the Mountain View Hotel, which was under significant renovation. We experienced broad demand growth across our portfolio with over two-thirds of our hotels generating RevPAR growth and approximately 25% of our hotels earning double-digit RevPAR gains. I do want to spend a few minutes talking about our largest market, Silicon Valley, since these hotels had an incredible start to the year. Occupancy at our four Silicon Valley hotels was 72%, flat to last year, despite our Mountain View Hotel being under renovation for the entirety of the quarter. And ADR was up 10% to a post-pandemic quarterly high of $210. Not a first-quarter high, a high mark for all post-pandemic quarters, and our Red Par of $152 would be the second-best quarter over the last six years. These are great results and very encouraging, again, especially considering the renovation at Mountain View during the quarter. For the other three hotels, Red Par was up double digits in each month of the quarter, finishing the quarter with a strong growth of 23%, as I said, and advancing another 12% in April. As Dennis quoted in the release, demand was up 9% in the first quarter, and in April, across the entire San Jose, Santa Cruz market. Our hotels did way better than that growth as our extended stay residents in hotels, as we've said before, are best suited for the corporate traveler coming to the valley. Rev Par was up 15% at our San Mateo hotel and our two Sunnyvale hotels shined with Rev Par up 26% in the quarter. Of course, massive capital investment announcements continue into technology from all types of companies, and seemingly unending these days, major technology companies are engaged in a historic multi-hundred billion dollar investment arms race, as it's been called in 2026, with big tech projected to spend over $650 billion on AI infrastructure. alone. Capital is flowing aggressively into data centers, specialized semiconductors, and energy with aggregate global AI investment projected to approach trillions. Of course, Silicon Valley is the heart of the tech world. We don't see that changing anytime soon. And having just been out there last month, I can tell you the energy and overall activity is the most positive I've felt Since before the pandemic in Sunnyvale, construction of the multi-billion dollar applied materials chip facility, our number one account, by the way, that is near both of our hotels in Sunnyvale, is in full swing. actually, they got a permit to build 24 hours a day. We tried to fly a drone over it to kind of share on one of our investor reports, but we kind of got knocked down on that idea by the people in charge there. Anyway, our two Sunnyvale hotels are seeing surging room to night production from our largest clients, many of whom are involved in these investments, as I said, such as Applied Materials, Palo Alto Networks, NVIDIA, of course, Google, particularly in Mountain View, Apple, Pure Storage, Plug and Play, and the list goes on and on. We certainly are encouraged about what finally seems to be happening for sure in the valley. In the short term, of course, adverse repercussions stemming from the turmoil in the Middle East, especially with respect to gas prices and their impact on travel, so far have yet to make any meaningful impact. We have easier comps over the last three quarters of the year in our three DC hotels as a result of all the doge and shutdown events that occurred last year. And of course, we do have U.S. 250 celebrations. So as to that market, I think we've got some visible upside there. Additionally, we do, as others have mentioned, but we do have some of the highest exposure to the World Cup among lodging REITs. And in Dallas, our courtyard downtown is right next to the convention center, which will host up to 5,000 media professionals as it is serving as the international broadcast center for the World Cup. In addition to Dallas, our hotels are quite close to stadiums in San Francisco and Los Angeles, and our Bellevue Residence Inn is positioned for easy commuter rail access to the stadium in Seattle, and our Residence Inn in Fort Lauderdale should also benefit. And of course, importantly, business travel demand, especially in our tech markets, is surging recovery in our tech hotels, which accounts for over 20% of our EBITDA, represents a unique opportunity for us to outperform our peers. Longer term, of course, just looking forward, the supply-demand equation that we've talked about before should still continue to benefit existing hotel owners. Construction costs, of course, remain quite high, and development is only justified in a few markets. Demand growth is quite encouraging so far, as we've said, in 2026. Business demand should continue to rise, even if a portion of the trillions of dollars of announced investments in technology and reshoring of manufacturing come to fruition in the United States. And of course, that's where I think our Midwest portfolio that we acquired should also benefit, I think, on an outsized basis, being in the hub of the manufacturing belt in the U.S. Leisure travel, which is approximately 18 percent of our Hotel Ibrida, will continue to benefit as well from changing consumer demand behavior as travelers want more experiences and nights away from home. Finally, on my end, we'll continue to opportunistically sell some older non-performing assets, and with the goal, of course, capital recycling, reinvesting those proceeds into share repurchases or hotel investments. Also, we expect to commence our Portland, Maine hotel development during the quarter, so although we've been talking about it for quite some time. They're actually beginning to erect a fence around that portion of the property, so it is happening with opening before the fall season of 2028. Dennis may say otherwise, but we'll kind of hedge that bet a little bit. We will provide a detailed breakdown of total spend and timing in connection with our second quarter earnings call in August, but I will tell you the unlevered returns are projected to be quite strong, as we've mentioned. With that, I'd like to turn it over to Dennis.

Thanks, Jeff. Good morning, everyone. To supplement Jeff's comment regarding using free cash flow to buy back shares, we implemented our $25 million repurchase plan in 2025, and our free cash flow was $15 million in 2025 and is projected to be approximately $20 million in 2026. So therefore, we intend to finish the entire $25 million program this year and we'll be reevaluating a new plan in the coming months. After the end of the quarter in April, we did buy approximately 200,000 shares at approximately $8.34 a share. Some additional quarterly information our top five REVPAR hotels in the quarter were our Residence Inn Fort Lauderdale with REVPAR of $262, our home to Phoenix Downtown with REVPAR of $191, followed by our Residence Inn Gaslamp, our HGI Marina Del Rey, and our Residence Inn by Marriott White Plains with REVPAR of $164. Our two Sunnyvale and San Mateo Residence Inns were three of our top 10 REVPAR hotels for the quarter. Our seven predominantly leisure hotels generate RevPar growth of 2% and a little over 2% in the quarter. Six of our seven leisure-driven hotels produce RevPar growth, with our Hyatt Place Pittsburgh leading the way with RevPar growth of 23%, benefiting from a solid convention calendar, which the convention center is right across the river from our hotel, and demand related to sporting events, especially Pittsburgh Penguins hockey. And of course, in April, the NFL draft was literally located right outside the doors of our hotel between our hotel and the Steelers Stadium. And we did, of course, really well there with RevPar up over about 250 percent during the week. Our three predominantly government-oriented hotels, all in the greater D.C. area, produced RevPar growth of 9% despite tough comps in January, comping over the inauguration last year. As a group, those hotels represent approximately 9% of our EBITDA. Our Springfield and Tyson's Corner hotels are recovering from all of the Doge and Liberation Day and shutdown activity last year. San Diego RevPar grew 5% in the quarter, outperforming our expectation, which was a decline of 5%. We're obviously quite pleased with the quarter. As a reminder, though, the 2026 convention calendar is a bit softer than 2025, and we are forecasting a RevPar decline of about 2% for the rest of the year. Hopefully, we have some upside there. In other large markets, our coastal Northeast hotels saw RevPar decline 8% in the quarter. Our Portland and Exeter hotels benefited last year from renovations at hotels in the comp set. In Texas, our Dallas and Austin hotels have felt the impact of convention demand fall off with convention centers under renovation and ongoing expansions. Rev part or Courtyard Dallas was down 26% in the quarter, though the good news is that our comps get better in the second quarter as we start to lap over prior weaknesses from the closure. In Austin, our residence in was under renovation for the bulk of the quarter, and that renovation is finished. Having said that, the entire Austin market has really been weak with overball rev par down 6% over the last 12 months. Like Dallas, comps start to get easier there towards the second half of the year. As an update, and this is really a great development. It was officially announced that the planned $3 billion MD Anderson Hospital and Research Center that was previously expected to be built downtown is now expected to be built at the JJ Pickle Research Campus, and groundbreaking is expected to start this year. That campus is approximately one mile from both of our hotels at the domain, and because our two hotels are both extended stay, we should benefit greatly from this new facility that will be under construction. shortly. Of course, we only owned the new six-pack of hotels for most of March, but as Jeff said, we're quite pleased with the performance of that group. RevFAR growth, again, for the quarter was up 6%, and then April was up 7%, slightly above our underwriting guidance. First quarter occupancy of 74% was 200 basis points higher than our portfolio average for the quarter, and given that this is the first time we've spoken publicly since closing the acquisition, I do want to spend some time just sharing some color on the portfolio that we acquired. The markets further diversify our geographic footprint into areas of the country that are benefiting from expanded investments in manufacturing and distribution. Joplin, Missouri is adjacent to the intersection of both Interstates 44 and 49 in Southwest Missouri and benefits from its location between Kansas City, St. Louis, Oklahoma City, and the ever-growing Northwest Arkansas area, which is home to, of course, Walmart, J.B. Hunt, and Tyson Foods. Key industries in the Joplin area include manufacturing with major players there, including General Mills, Frito-Lay, Coca-Cola, Cargill, and the headquarters of Leggett and Platt, and obviously distribution, given its proximity, is a major driver there. Additionally, the hotels will benefit from an almost $400 million development called Prospect Village, which will be home to a sports complex that will include 135,000 square foot indoor athletic center, as well as outdoor turf fields. The sports complex is expected to host 28 indoor tournaments and 22 outdoor tournaments over weekends in each year that will generate an extra $12 million of annual spending, visitor spending, and 27,000 annual hotel room nights, and these will be mostly weekend nights, thus enhancing our full-week performance at the hotels. Paducah sits on Interstate 24 and is proximate to the many high-traffic commerce routes between St. Louis, Louisville, Nashville, and Memphis. Key industries include manufacturing with large-scale facilities in the area operated by Darling Ingredients, Frito-Lay, H.B. Fuller, among many others, as well as the marine industry in Paducah, as it is a major hub for the inland marine industry due to its location at the confluence of the Ohio and Tennessee rivers with proximity to the Mississippi and Cumberland rivers. Like Jocelyn, Paducah is set to open in the next month an almost $100 million multi-sport outdoor sports complex, and that's expected to open here in the next month and is expected to host 35 to 40 tournaments a year. In 2026, it's projected to at least host two full weekend tournaments per month for the next six months. Additionally, on the longer-term horizon for Paducah, in March it was announced that Global Laser Enrichment is planning to build a new nuclear enrichment facility on a 665-acre site and Paducah. Plans are currently under review by the Nuclear Regulatory Commission, and once approved, construction will take approximately three years to open. The project is expected to generate approximately 1,000 jobs over the course of construction and hundreds of jobs upon completion. And just given the nature of the facility, it's going to be a constant source of demand from, obviously, ongoing visitations from whether it be authorities, interested parties, and everything of the like, so really good long-term project there. Effingham sits at the crossroads of Interstates 57 and 70, midway between Indianapolis and St. Louis, and brings into its area about 200,000 of workers from eight neighboring counties each week. Key industries include food and agriculture with major players such as Archer's Daniels Midland, Crusties, Pepsi, and Seamer Milling. Manufacturing is also a major player with Flexingate Hitachi Metals, Effingham Machine and Assembly and Peerless of America. And then, of course, again, similar to the other two markets, distribution, given its relation to many different modes of transportation, is a big player. Shifting my comments back to our operating results, we did grow Hotel EBITDA 5% at our 33 comparable hotels, as we were able to increase our GOP hotel margins on the back of a decline and labor and benefits preoccupied room of over one percent. Additionally, we drove our other operating profits six percent higher in the first quarter. Looking at guidance for the remainder of the year, our hotel EBITDA margins are up kind of about 100 basis points from our previous guidance and continuing the trend since last year, we've stayed later focused on our staffing levels and maximizing productivity and efficiencies. As a reminder, in 2025, our labor and benefits costs declined year over year slightly, and we were the only lodging REIT to accomplish that. And like I said, in the first quarter, we were able to reduce our labor and benefits by over 1% or 50 cents per occupied room. We also benefited from lower property insurance rental rates and property taxes due to some refunds, and those items were able to absorb an approximate 12% increase in utility costs at our comparable hotels. We were particularly impacted by the massive snowstorm across the middle of the country and northeast in the early part of the first quarter. For the quarter, our top five producers of GOP were led by our residents in San Diego, our two Sunnyvale residents inns, and then our home to Phoenix, and lastly, our residents Fort Lauderdale. Outside of our top five, but in our top 10, was also our residents in San Mateo. So, again, all three of the Silicon Valley hotels that were not under renovation were in our top 10. Looking at these comparable Silicon Valley hotels, Hotel Avid Dog grew a remarkable 35 percent year-over-year on what was a 23 percent rev par increase for a 1.5 times flow-through. Again, going to show you the upside financial leverage we can get when these hotels start to grow. That 35% growth is pro forma for a property tax refund that we received on one of those three hotels during the quarter. If you include that, the actual growth was about 50% in Hotel EBITDA. On the CapEx front, we spent approximately $6 million in the quarter. We completed the full renovation of our residence inn in Austin and the rooms portion of the Mountain View renovation. We are completing major interior upgrades to the Mountain View Gatehouse that will be complete here in the next month. And later this year, we'll be completing a significant enhancement to our gatehouse outdoor amenities that will be fantastic for our guests to enjoy the great weather, as well as to collaborate with other guests in a very nice setting. Our CapEx budget for 2026 is approximately $27 million. We have three hotels scheduled for renovation later this year. That's our Gaslamp Residence Inn, our Hyatt Place Pittsburgh, and our Farmington Homewood Suites, and those are all expected to start in the fourth quarter. Lastly, I'll add that the six recently acquired hotels have very little capex required this year, and in fact, only one hotel is scheduled for renovation over the next two years, the Hampton Inn and Suites Paducah.

With that, I'll turn it over to Jeremy. Thanks, Dennis. Good morning, everyone. Our Q1 2026 Hotel EBITDA was $21.4 million, adjusted EBITDA was $18.4 million, and adjusted FFO was $0.20 per share. We were able to generate a GOP margin of 40.2% and Hotel EBITDA margin of 31.8% in Q1. GOP margins for the quarter were up 60 basis points from Q1 2025 due to outstanding expense control. As Dennis mentioned, Q1 labor and benefits costs actually decreased 1% on a preoccupied room basis. Q1 hotel EBITDA margins increased by 140 basis points due to both the strong expense control and $500,000 of property tax refunds in the quarter. In early March, Chatham closed on the acquisition of a portfolio of six Hilton branded hotels for $92 million. The acquisition was funded with borrowings on a revolving credit facility, which currently has a rate of approximately 5.1%. We are very excited about this acquisition given the hotel's average age of only approximately 10 years, outstanding margins, strong REVPAR growth, and limited near-term capital needs. We expect this acquisition to be significantly accretive to Chatham's FFO and free cash flow. After this acquisition, Chatham's leverage ratio as defined in our credit agreement was only 32.5%. Chatham's strong balance sheet puts the company in an excellent position to continue actively repurchasing shares, pursue the planned development of a hotel in Portland, Maine, and to continue to grow opportunistically through a creative acquisition. Turning to our 2026 guidance, we expect RevPAR growth of 0-2%, adjusted EBITDA of $95.3 million to $99.6 million, and adjusted FFO per share of $1.21 to $1.29 for the full year. Our guidance reflects the contribution from the $92 million acquisition from March 3rd forward. Reflecting the pro forma impact of this acquisition, our 2025 REVPAR would have been $127 in Q1, $153 in Q2, $151 in Q3, $129 in Q4, and $140 for the full year. We generally expect Chatham's Q2 26 REVPAR will increase approximately 1 to 2 percent. While our guidance does not reflect any share repurchases or acquisitions. Our plan is to continue repurchasing shares and over time to continue to pursue accretive acquisitions. This concludes my portion of the call. Operator, please open the line for questions. Thank you, sir. Ladies and gentlemen,

we now begin the question and answer session. If you'd like to ask a question, please press start, follow up on the number one on your telephone keypad. If your question has been answered, you'd like to address from the queue, please press start, follow up on the number two. And if you're using a speaker phone, please lift your hands up if you're pressing any keys. One moment, please overcompile the roster. Your first question comes from Gaurav Mittal with Alliance Global Partners. Just go ahead.

Yeah, thank you. Good morning. I wanted to ask you on the portfolio acquisition, hoping to maybe get some more color. Was this like an off-market deal or a fully marketed deal? What were the cap rates like? And what do you attribute? It seems like the performance for the portfolio is coming in better than what you underwrote during the acquisition. What do you attribute that outperformance to?

Hey, Gaurav. Yes, I mean, I think the transaction itself was a broker transaction sent out to, I guess, a group of parties. I think one of the things that, you know, we liked about the deal, and I think, you know, there aren't a lot of buyers that are out there that have the ability to kind of take down $100 million acquisition. It's kind of too big for a bunch of buyers that, you know, we might see on an individual deal. And, you know, we were, you know, certainly involved in the transaction and, you know, in just kind of a lot of the deals that we've looked at over the last couple of years, really excited about kind of some of these other markets that might initially be off the radar of certain other people. But, you know, just doing a lot of work and seeing a lot of information like the transaction. The performance of the portfolio is, I wouldn't say meaningfully above our underwriting, but both in terms of, you know, the first quarter performance and the April performance, you know, RevPAR growth, you know, I'd say is a buck or two above where we thought it was going to be. So, it's not just like significantly outperforming our underwriting, but it is outperforming. So, just, you know, very pleased with the six hotels, how they've gotten out of the gates so far, and really like what it does for us in terms of diversifying into some other industries and, you know, a little bit into the Midwest of the country.

All right. Thanks for that, Kalar. Maybe on the acquisition market in general, are you Are you guys seeing more activity now in the transaction market compared to maybe, you know, last quarter?

I think it's similar to last quarter, Gaurav. I think, you know, I think it's still a challenged market, especially when you look at individual-type transactions. You know, I think, thankfully, the public, at least the public companies, their multiples are, you know, thankfully, we're starting to adjust a little bit here. So it's going to make it, I think, you know, allows people to have a little bit of a lower cost of capital, which might generate some additional interest. But at the moment, I think it's pretty consistent in terms of deal flow last quarter to this quarter. But then that's certainly more than what we saw a year ago.

All right. Thanks for that, Calder. And then maybe on, I guess, asset recycling, disposition side, are there any more assets that you guys may sell or you have sold, the asset that you guys sold in the last few quarters, is that about it for now?

Yeah, we're still looking at that, Gaurav, and I think, you know, we'll probably end up trying to sell one or two, the balance of the year, I think, with the whole purpose of, you know, again, I think, as we noted, reinvesting those dollars into either share repurchases or new acquisitions, but certainly that last program was really the, you know, a pretty high volume for us but I think it'll just be one or twosies for the foreseeable future.

All right. Thank you. That's all I have.

Thank you. Your next question comes from Eric Klein with BMO Capital Markets. Please go ahead.

Thanks and good morning. Maybe just a follow-up on acquisitions. These are somewhat different markets than the rest of your portfolio. Just curious, any supply growth to speak of in these markets that we should be aware of? Supply growth. Oh, supply growth? Yeah,

Yeah, very little. There's one hotel that just recently, I believe, opened in Paducah. But outside of that, really no new supply. It's coming to the three markets.

And maybe shifting gears a little bit. You mentioned that some of your markets will benefit from the World Cup. What are your World Cup expectations and how is that factored into the guidance? And then just on the guide in general, it seems like you're assuming somewhat slower growth in the second half of the year. You do have some easier comps. Is that just factoring some level of conservatism on your part?

Yep, thanks. Yeah, I think, listen, I think similar to, I think we do have some conservative in there in general. I think the World Cup, we're being pretty conservative, I think, in regards to that as well. I think there's a lot of, you know, a lot of publicity and media attention around international travelers coming in and the fact that tickets are really expensive on top of just trying to get to the country. So, you know, I think we're taking a pretty measured approach when it turns to our forecast for most of those markets. Obviously, we're projecting growth, but hopefully we see some upside, not only with the World Cup, but I think just in general, like you said, we have some certainly some easier comps with a lot of the shutdown activity. But I think, you know, if you look at our guidance of kind of one to one and a half percent to two percent for the rest of the year, hopefully we outperform.

Got it. And maybe just one last one. In Silicon Valley, previously you used to get a decent amount of intern business. It kind of has faded maybe a little bit the last couple of years. How are you seeing that play out, I guess, over the course of this summer?

Yeah, I think in general, the intern business has come down significantly from pre-pandemic and especially kind of, I think it was the summer of 2022, I believe, when we had a tremendous amount of business. There is some still out there. We do have kind of one block of interns on the books at one of our hotels, not taking it to the bank yet. But, you know, we do have some intern business coming back this summer. So, hopefully, that does end up happening. That would be from the kind of late May to mid-August timeframe.

That's all for me. Thanks for all the color.

Thank you. Thank you. Your next question comes from Tyler Brattori with Oppenheimer. Please go ahead, Tyler.

Good morning, everyone. A lot of good detail here, and congrats on the really strong results. Really nice to see the execution here. A couple of cleanup questions for me and share repurchases, capital allocation first. I mean, it's been a while since your stock price is in the double digits. I guess we're starting to approach that. I mean, does share repurchases still make sense up here? I mean, you mentioned the stock still being undervalued in your mind. Any help in terms of what the portfolio might be worth, what you think might be a fair multiple for your assets?

Well, that's a very interesting question. To talk about the share repurchases, I think, you know, if you look at kind of where we're trading it as of literally right this second, we're around the nine cap on our corporate NOI, around the 10 cap on our hotel NOI. So, listen, it's still on a historical basis, even at $9.45, is an attractive investment for, again, kind of what we determine a use of proceeds from our, obviously, free cash flow and our capital recycling. So, I think we'll, you know, continue to buy shares within our $25 million repurchase And that probably takes us through, you know, the end of the third quarter is most likely kind of at the rate that we've been buying shares at. I think as far as what we're worth, that's a different loaded question. But I think certainly we don't feel, you know, we feel our portfolio and most I think our peers would say the same. Her, you know, underlying value is much better from a cap rate perspective and EBITDA multiple than where we're trading. You know, we're still all trading at multiples that are in the history of lodging REITs fairly low. So I think there's a lot of upside.

Yeah, I think even outside of the question of valuation, multiple, or cap rate, we just see a ton of upside in the EBITDA and NOI in particular of our Silicon Valley assets. So even if the multiple weren't to re-rate at all, I think we still see a bunch of upside in the portfolio and in the stock.

Okay. Okay. My follow-up on operations, and just to hit on Silicon Valley a little bit more, the Red Park growth there is tremendous. And I'm trying to get a sense of, in terms of your guide, talking about the rest of the year, just what's included in that outlook for Silicon Valley. If you could also just frame, too, and I think you got one of the assets there under renovation, too. I'm not sure if that's a catalyst in terms of driving further upside to that portfolio in the years ahead.

Yeah, I mean, listen, the Mountain View renovation and, like I said, the gatehouse has been completely closed and check-in has been using two – our lobby is, in essence, two guest rooms. So it's been pretty disruptive there. But I think if you look at the balance of the year for the four hotels, and I'm just pulling up some information for you, Tyler, you know, obviously we talked about, you know, for the four hotels of being up, or the three hotels of being up 12%, but when you look at kind of coming out of the renovation, the four hotels, we're projecting kind of mid to upper single digits REVPAR growth for the balance of the year from essentially, you know, May to December. So, you know, that's a little bit, I think, obviously conservative compared to what the first, you know, four months of the year have done. But, you know, hopefully we continue to see that demand growth. But there potentially could be some upside there as well.

Okay. Appreciate the detail. That's all from me.

Thank you.

Thank you. There are no further questions on the phone line. I will turn the call back to Mr. Fisher for some closing remarks.

Well, again, I just want to thank everybody for being on the call. We are pretty pleased here with not only the top line results, but frankly, I'm very pleased with how the operator has been able to flow those top line results to the bottom line. And as Dems mentioned, actually experiencing some reduction in some labor costs and otherwise due to some really strict controls that have been enforced very well. So we look forward to continuing to put up some good results for the rest of the year. I think conservatism, obviously, as reflected in our peers as well, is probably the best bet for the time being, given that there is a war going on in the Mideast. And I don't think we mentioned that yet, but it's certainly worth to keep in mind. And, again, we think the hotels themselves and the overall trends bode very well. Thank you.

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating, and as it should please disconnect your lines. Have a great day.