Chatham Lodging Trust (CLDT) Q4 2025 earnings summary

Executive summary

• Achieved industry-leading operating margins in 2025, reclaiming the top spot for the first time since the pandemic, and returned to profitability with $2.6 million net income to common shareholders in Q4 2025, reversing a $3.7 million loss in Q4 2024.

• Outperformed industry RevPAR for the fourth consecutive year, despite flat overall RevPAR.

• Sold four older, lower RevPAR hotels for $71–$71.4 million and repurchased 1.8 million shares, returning $35 million to shareholders through dividends and buybacks.

• Reduced net debt by $70 million and leverage ratio to 20%, down from 35% in 2019 and 23% year-over-year.

• Completed $500 million in new financing at lower borrowing costs, increasing liquidity.

Financial highlights

• Q4 2025 hotel EBITDA was $22.4 million; adjusted EBITDA $20.2 million; adjusted FFO $0.21 per share, up 5% year-over-year.

• GOP margin for Q4 was 40–40.2%, hotel EBITDA margin 33–33.2%; GOP margin declined only 30–100 bps despite 1.8% RevPAR drop.

• Hotel EBITDA margins increased 70 bps due to $550,000 in property tax refunds.

• For 2025, RevPAR increased 4.4% in Q1, then declined 0.4% in Q2, 0.9% in Q3, and 1.8% in Q4 to $131.

• Labor and benefits costs increased just 1.2% per occupied room in Q4; headcount down 13% year-over-year.

Outlook and guidance

• 2026 guidance: RevPAR $142–$145 (-0.5% to +1.5%), adjusted EBITDA $84–$89 million, adjusted FFO per share $1.04–$1.14, and hotel EBITDA margin 33.5–34.5%.

• 2026 net loss to common shares projected at $(13.0)–$(8.0) million.

• Q1 2026 RevPAR expected to decline low single digits, then turn positive for the rest of the year.

• Guidance assumes SOFR rate cuts, declining interest expense, and no additional acquisitions or dispositions.