Chatham Lodging Trust
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.54%.
Did CLDT Beat Earnings? Q2 2025 Results
Chatham Lodging Trust posted a modest beat in its second quarter of 2025, with revenue of $80.29 million edging past the $79.67 million consensus estimate by 0.78%, while GAAP diluted EPS of $0.07 cleared the $0 consensus expectation. The results came despite a 7.2% year-over-year revenue decline, a drop management attributed almost entirely to the deliberate disposition of five lower-performing hotels rather than any deterioration in underlying portfolio fundamentals. RevPAR across 34 comparable hotels fell less than 1% to $155, finishing ahead of the company's own guidance range, with occupancy holding firm at 82% and ADR steady at $191. Adjusted FFO per diluted share of $0.36 landed at the top of guidance. Looking ahead, Chatham guided Q3 AFFO per diluted share of $0.29 to $0.33 and full-year 2025 AFFO of $0.95 to $1.03, citing expectations of improving business travel demand in August, September, and the fourth quarter as a potential tailwind for the trimmed, lower-leverage portfolio.
- Silicon Valley technology-related demand drove 3% RevPAR growth in the company's largest market
- Strong leisure hotel performance with RevPAR up 4% in the quarter (excluding Portsmouth renovation)
- San Diego rebounded with 5% RevPAR growth driven by convention business
- Los Angeles RevPAR grew 1% as wildfire-related demand subsided
- Worker's compensation plan refund of approximately $0.8 million improved operating margins by 110 basis points
- GOP margins rose 30 basis points year-over-year
- Total labor and benefit costs per occupied room declined 7% year-over-year
“After a weak April, our RevPAR turned positive in May and June, and our second quarter RevPAR decline of 0.4% finished better than our guidance range of a decline of 2 percent to a decline of 0.5 percent. Despite the RevPAR decline, we were able to hold margins essentially flat compared to last year and delivered adjusted FFO per share at the top of our guidance range.”
Chatham Lodging Trust CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2025, Chatham guides RevPAR growth of -1.5% to +0.5% ($153-$156), total hotel revenue of $78.8M-$80.3M, net income to common shares of $0.0M-$2.0M, Adjusted EBITDA of $24.7M-$26.8M, and AFFO per diluted share of $0.29-$0.33. For full-year 2025, RevPAR growth is guided at -1% to +1% ($142-$143), total hotel revenue of $295M-$297M, net income to common shares of $(3.1)M-$0.7M, Adjusted EBITDA of $89M-$93M, and AFFO per diluted share of $0.95-$1.03. Q4 RevPAR is projected to range from -1% to +1%. Management expects improving business travel demand in August, September, and Q4. Guidance assumes no additional acquisitions, dispositions, or equity/debt issuance, with floating rate debt based on the SOFR forward curve.
CLDT YoY Financials
Figures from SEC filings and company reports. Not investment advice.