Chatham Lodging Trust (CLDT) Q4 2025 earnings summary

Executive summary

• Delivered strong operational performance in 2025, outperforming industry RevPAR for the fourth consecutive year despite flat RevPAR and industry volatility.

• Achieved highest operating margins in the industry since the pandemic, reclaiming a top spot held from 2010-2019.

• Achieved net income to common shareholders of $2.6 million in Q4 2025, reversing a $3.7 million loss in Q4 2024.

• Strategic asset sales and share repurchases enhanced shareholder returns, with $35 million returned via dividends and buybacks.

• Maintained disciplined expense control, limiting GOP margin decline and reducing labor costs.

Financial highlights

• Q4 2025 hotel EBITDA was $22.4 million; adjusted EBITDA $20.2 million; adjusted FFO $0.21 per share.

• GOP margin for Q4 was 40.2%, hotel EBITDA margin 33.2%; GOP margin down only 30 bps despite 1.8% RevPAR decline.

• Adjusted FFO per share rose 5% to $0.21 in Q4 2025.

• Net debt at year-end 2025 was $319 million, down from $389 million in 2024.

• Common dividend increased by 28% year-over-year.

Outlook and guidance

• 2026 guidance: RevPAR -0.5% to +1.5%, adjusted EBITDA $84M-$89M, adjusted FFO per share $1.04-$1.14.

• 2026 net loss to common shares projected at $(13.0)–$(8.0) million; hotel EBITDA margin expected between 33.5% and 34.5%.

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

• Guidance assumes no additional acquisitions or dispositions and includes impact from 2025 hotel sales.

• Guidance excludes non-cash stock-based compensation from adjusted FFO starting 2026.