In contrast, our contribution agreement with LTD is no longer expected to close in the state that we previously announced. CHT had agreed to acquire nine hotels from LTD, and after closing on the first asset, the trust had been progressing steadily to acquire the remaining eight hotels in a single closing towards the end of 2024. In the fourth quarter of 2024, the eight hotels experienced a decline in their expected operating performance, which we attributed to the level of exposure the portfolio has to military and federal government-driven spending and the government's desire to reduce its spending. While we are disappointed that we could not find a revised structure to complete the LTD acquisition, we believe the decision to pause and move on to other assets is a good example of our discipline and our stewardship of capital.

Mar 31, 2025 / CEO / receipt, needs a key / Chris Loeffler, CEO | earnings call 2025-03-31 | transcript 33d66d3c-a493-4216-8ede-5a1a905ad2a3 | chars 14042-14881 | segment 14

Our third growth catalyst is product-focused, driven primarily by the launch of the Caliber Hospitality Trust, or CHT. As a reminder, CHT is a private hospitality real estate investment trust managed by Caliber. It was structured as an upgrade, which is a tax-efficient vehicle for us to merge hotel assets together on a tax-free exchange. CHT was established to provide hotel owners across the country with a compelling alternative to asset sales to access liquidity, reduce and extend debt, and pay for property improvement plans or access well-priced operating capital by contributing their hotel assets to CHT.

Apr 15, 2024 / CEO / receipt, needs a key / Chris Loeffler, CEO | earnings call 2024-04-15 | transcript 00e5cabc-a798-42b7-b99d-7d7900d95d73 | chars 12589-13203 | segment 12