Chatham Lodging Trust (CLDT) Q2 2025 earnings summary

Executive summary

• Completed sale of five hotels for $83 million at a 6% cap rate on 2024 NOI, targeting lower-performing assets and further de-leveraging the balance sheet.

• Portfolio consisted of 34 hotels with 5,166 rooms across 15 states and D.C. as of June 30, 2025.

• Initiated a $25 million share repurchase program, buying back 20,480 shares at a $7.02 average price in Q2.

• Operationally, Q2 RevPAR and FFO per share were at the top of guidance, with occupancy at 82%, matching post-pandemic highs.

• Net income to common shareholders was $3.4 million, down from $4.9 million year-over-year; diluted EPS was $0.07 vs. $0.10.

Financial highlights

• Q2 2025 hotel EBITDA: $30.9 million; adjusted EBITDA: $28.5 million, both down year-over-year due to asset sales.

• Adjusted FFO for Q2 2025 was $18.5 million ($0.36 per share), compared to $19.9 million ($0.39 per share) last year.

• Total revenue for Q2 2025 was $80.3 million, down 7.2% year-over-year.

• GOP margin for Q2: 46.3%, up 30 bps year-over-year; Hotel EBITDA margin declined 40 bps to 39%.

• Declared $0.09 per share common dividend and $0.41406 per preferred share.

Outlook and guidance

• Q3 2025 guidance: RevPAR $153–$156, growth of -1.5% to +0.5%, adjusted EBITDA $24.7–$26.8 million, adjusted FFO $0.29–$0.33 per share.

• Full-year 2025 guidance: RevPAR flat to +1%, adjusted EBITDA $89–$93 million, adjusted FFO per share $0.95–$1.03.

• Guidance assumes no further asset sales, capital markets activity, or floating rate changes.

• Company expects to invest $9.3 million in renovations and improvements for the remainder of 2025.

• Industry RevPAR decreased 0.5% for Q2 2025, with limited visibility for the remainder of 2025.