Chatham Lodging Trust (CLDT) Q4 2024 earnings summary

Executive summary

• Achieved 4% RevPAR growth in Q4 2024, outperforming industry and maintaining leading EBITDA margins among select service hotel REITs.

• Sold or under contract to sell six older, low-RevPAR hotels for $101 million, reducing leverage to 23% from 25% last year and nearly 35% in 2019.

• Returned $22 million in dividends to shareholders and participated in GRESB, earning four out of five stars and a Green Star, ranking 2nd in peer group.

• Business travel demand drove strong non-seasonal month RevPAR growth, with leisure travel softening in summer months.

• Net loss narrowed to $1.9M from $9.3M in Q4 2023; net loss per diluted share improved to $(0.08) from $(0.23).

Financial highlights

• Q4 2024 revenue was $75.1M, up from $72.3M in Q4 2023; full-year revenue reached $317.2M.

• Q4 hotel EBITDA was $24.3M; Adjusted EBITDA $21.4M; Adjusted FFO $0.20 per share.

• GOP margin for Q4 was 41%, hotel EBITDA margin 33%, both up year-over-year.

• Net debt reduced by $29M in 2024, following a $26M reduction in 2023.

• Dividends per common share: $0.07 for Q4, $0.28 for 2024.

Outlook and guidance

• 2025 guidance: RevPAR growth of 1%-3.5%, Adjusted EBITDA $92-$97M, Adjusted FFO per share $1.01-$1.11.

• Q1 2025 guidance: RevPAR growth 3%-4%, Adjusted EBITDA $16.7-$18.3M, Adjusted FFO per share $0.12-$0.15.

• Hotel EBITDA margin projected at 34.8%-35.8% for 2025.

• Guidance assumes proceeds from asset sales are used to repay debt; no acquisitions included but plans to reinvest in accretive assets.