Chatham Lodging Trust
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.89%.
Did CLDT Beat Earnings? Q3 2025 Results
Chatham Lodging Trust delivered a mixed but ultimately resilient Q3 2025, posting earnings that cleared the bar even as revenue fell short. The hotel REIT earned $0.03 per diluted share against a consensus estimate of just $0.01, a 200.00% beat, while revenue of $78.41 million trailed the $79.14 million estimate by 0.92% and slid 10.1% from the year-ago quarter's $87.18 million. The shortfall traced largely to broad RevPAR pressure, with comparable hotel RevPAR declining 2.5% to $151 on softer corporate demand in Silicon Valley, a weak convention calendar in San Diego, and government travel cuts weighing on D.C.-area properties. Adjusted FFO came in at $0.32 per diluted share, down from $0.35 a year earlier, though management credited labor efficiencies and lower property taxes for keeping results near the upper end of guidance. Looking ahead, Chatham expects continued pressure, guiding Q4 RevPAR to decline 2.5% to 3.5%, with full-year 2025 AFFO per diluted share of $0.96 to $0.99, as an ongoing federal shutdown clouds the near-term demand outlook.
- RevPAR declined 2.5% to $151 for 34 comparable hotels driven by ADR decline of 1.8% and 60bps occupancy slip
- Labor efficiencies and lower-than-expected property taxes helped offset weaker RevPAR
- Hotel EBITDA margin held at 37%, declining only 30 basis points year-over-year
- Extended-stay hotels generated approximately 66% of hotel EBITDA over the trailing twelve months
- Greater New York RevPAR grew 8% driven by Ryder Cup demand; Holtsville Residence Inn RevPAR up 28%
- Coastal Northeast RevPAR grew 2%; Hampton Inn Portland set all-time quarterly RevPAR high of $354
- Silicon Valley RevPAR down 4% due to weak corporate demand at Sunnyvale hotels
- San Diego RevPAR down 10% on weak convention calendar
- Washington D.C. RevPAR down 6% due to government travel cuts ahead of shutdown
- Government shutdown impact: approximately 40bps on Q3 RevPAR, 170bps on October RevPAR
“Despite weaker than expected RevPAR, we were able to deliver adjusted FFO per share towards the upper end of our guidance range as our operating margins benefitted from labor efficiencies and lower-than-expected property taxes.”
Chatham Lodging Trust CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2025, Chatham expects RevPAR to decline 2.5% to 3.5% with total hotel revenue of $66M–$67M, Adjusted EBITDA of $16.7M–$18.3M, Adjusted FFO of $7.1M–$8.6M, and AFFO per diluted share of $0.14–$0.17. Q4 net loss to common shareholders is expected to be $6.2M–$7.8M. For full-year 2025, RevPAR is expected to decline 0.3% to 0.7% to $140–$141, with total hotel revenue of $293M–$294M, Adjusted EBITDA of $89.2M–$90.8M, AFFO per diluted share of $0.96–$0.99, and Hotel EBITDA margins of 34%. Guidance assumes no additional acquisitions, dispositions, debt or equity issuance, and floating-rate debt based on the SOFR forward curve. The government shutdown is negatively impacting October RevPAR by an estimated 170 basis points.
CLDT YoY Financials
Figures from SEC filings and company reports. Not investment advice.