Papertrail can send a chat message to a HipChat room; the chat message will contain the logs and a link to context.
Follow the steps in Alerts.
HipChat offers 2 types of keys for v1 of their API (details). Use a Notification key, not an Admin key. The token label can be a freeform description of your choosing. The API tokens page should look similar to this:
You will also need:
Then for the search alert you are creating, choose:
Papertrail uses HipChat API v1.