Chatham Lodging Trust
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −8.52%.
Did CLDT Beat Earnings? Q4 2025 Results
Chatham Lodging Trust delivered a sharply positive Q4 2025 earnings surprise, posting adjusted EPS of $0.05 against a consensus estimate of -$0.14, a beat of 135.71%, while revenue of $67.74 million edged past the $67.22 million estimate despite falling 9.8% year over year. The most material driver of the upside was a combination of disciplined cost management and the financial impact of strategic asset sales, including a $6.86 million gain on hotel dispositions and meaningfully lower interest expense of $6.15 million versus $7.59 million a year ago, which helped swing the company to net income of $2.60 million from a loss of $3.70 million in Q4 2024. Portfolio RevPAR slipped 1.8% to $131, weighed down by an 11% decline in Washington D.C. and key convention markets, though Hotel EBITDA margins still expanded 70 basis points to 33.2%. Looking ahead, the company guided 2026 Adjusted FFO per diluted share of $1.04 to $1.14, and has since moved to reinvest disposition proceeds, acquiring six Hilton-branded extended-stay hotels for $92 million while raising its quarterly common dividend 11%.
- Intense asset management enabled flat year-over-year margins despite declining RevPAR
- Labor and benefit expense declines across all departments on a per occupied room basis
- Property tax decline of $0.8 million aided margins by 100 basis points
- Greater New York and Seattle RevPAR growth of 5% and 14% from strengthening corporate demand
- Hotel EBITDA margin expanded 70 basis points to 33.2% despite lower RevPAR
- Extended-stay hotels generated approximately 66% of hotel EBITDA
“We accomplished much during 2025. Operationally, we produced solid results despite very volatile conditions, and our intense asset management enabled us to hold margins essentially flat year-over-year. In fact, for the first time since the pandemic, we generated the highest operating margins in the industry, reclaiming our spot atop the rankings, a position we held from essentially 2010 to 2019. Strategically, we sold four of our older hotels at a very attractive cap rate, using a portion of the proceeds to lower debt and to acquire shares under our newly implemented repurchase plan.”
Chatham Lodging Trust CEO, on the earnings call
Forward Guidance & Outlook
For 2026, Chatham guides RevPAR of $142-$145 (growth of -0.5% to 1.5%), total hotel revenue of $284M-$290M, net loss to common shareholders of $(13.0)M to $(8.0)M or $(0.27) to $(0.16) per diluted share, Adjusted EBITDA of $84M-$89M, and Adjusted FFO per diluted share of $1.04-$1.14. Hotel EBITDA margins are expected at 33.5%-34.5%. Guidance assumes planned renovations at three hotels in Q4 2026, floating rate debt based on the SOFR forward curve, $2.1M EBITDA impact from 2025 hotel sales, and no additional acquisitions, dispositions, or equity/debt issuance. Management characterizes the near-term outlook as conservative given recent industry volatility but is positive on the long-term industry outlook, citing projected GDP growth and demand growth expected to outpace muted supply growth.
CLDT YoY Financials
Figures from SEC filings and company reports. Not investment advice.