Chatham Lodging Trust
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.24%.
Did CLDT Beat Earnings? Q2 2026 Results
Chatham Lodging Trust posted a notably strong second quarter for fiscal 2026, beating Wall Street expectations on both the top and bottom lines and extending its consecutive EPS beat streak to four quarters. The hotel REIT reported earnings of $0.13 per diluted share, clearing the $0.11 consensus estimate by 18.18%, while revenue of $87.80 million edged past expectations and grew 9.3% year over year from $80.29 million. The single most material driver behind the quarter was the March 2026 acquisition of six Hilton-branded hotels for $92.00 million, which contributed meaningfully to revenue growth alongside broad-based RevPAR expansion of more than 3% across comparable properties. Hotel EBITDA margins expanded 220 basis points to 41%, reflecting disciplined labor cost management, with per-occupied-room labor costs rising only 3% after adjusting for a one-time prior-year benefit. Stifel raised its price target on the stock to $14 following the results. Looking ahead, management raised full-year guidance, projecting AFFO per diluted share of $1.28 to $1.34 and total hotel revenue of $312.00 million to $316.00 million.
- RevPAR grew over 3% in Q2, far outperforming 1.5% guidance assumption
- Silicon Valley remains hottest market with 9% RevPAR growth excluding renovating hotel
- Acquired six-hotel portfolio produced 9% RevPAR growth, beating underwriting expectations
- Aggressive expense management drove GOP margins up 50 bps and Hotel EBITDA margins up 220 bps
- Labor and benefits per occupied room increased only 3% after adjusting for prior year refund
- June RevPAR of $175 was an all-time high for the month
- July RevPAR soared 10% to $169, an all-time high for July
- World Cup drove incremental demand across multiple markets
“We are really proud of our performance in 2026 as our accomplishments and results prove we are hitting on all cylinders. It was a great second quarter with AFFO per share soaring 22% higher as we combined great operating results with returning additional capital to our shareholders by repurchasing shares. Our total shareholder returns are the best among lodging REITs in 2026. We are very optimistic about our forward trajectory, and, wow, did our third quarter get off to a great start with RevPAR soaring 10 percent.”
Chatham Lodging Trust CEO, on the earnings call
Forward Guidance & Outlook
Chatham raised its full-year 2026 guidance: RevPAR growth of 1.5% to 3.0% ($142-$144), total hotel revenue of $312M-$316M, net income (loss) to common shares of $(4.7)M-$(1.6)M, net income (loss) per diluted share of $(0.10)-$(0.03), Adjusted EBITDA of $99.2M-$102.3M, Adjusted FFO of $63.7M-$66.8M, and Adjusted FFO per diluted share of $1.28-$1.34. Hotel EBITDA margins are guided at 35.5%-36.0%. Guidance assumes no additional acquisitions, dispositions, debt or equity issuance. July RevPAR soared 10% to $169, providing strong early third quarter momentum.
CLDT YoY Financials
Figures from SEC filings and company reports. Not investment advice.