Chatham Lodging Trust
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.75%.
Did CLDT Beat Earnings? Q1 2026 Results
Chatham Lodging Trust delivered a stronger-than-expected first quarter, posting a loss of $0.13 per diluted share against a consensus estimate of $0.18, a 27.78% beat, while revenue of $67.50 million edged past the $65.75 million estimate by 2.67% despite slipping 1.6% year over year. The key driver behind the outperformance was a resurgent Silicon Valley market, where RevPAR climbed 23% excluding a hotel under renovation, helping lift comparable portfolio RevPAR 1% to $128 and well clear of the negative 3% decline embedded in the company's own annual guidance. Adjusted FFO rose 18% to $0.20 per diluted share, and Hotel EBITDA margins expanded 135 basis points to 32% as labor productivity gains trimmed per-occupied-room costs. Management responded to the momentum by raising full-year 2026 Adjusted FFO guidance 15% to a range of $1.21 to $1.29 per diluted share, with total hotel revenue now expected between $308 million and $314 million, underscoring growing confidence in the portfolio following its $92 million six-hotel acquisition earlier in the quarter.
- Silicon Valley RevPAR surged 23% (excluding hotel under renovation), driven by increasing corporate demand
- Recently acquired six-hotel portfolio delivered 6% RevPAR growth in Q1 and 7% in April
- Labor productivity improvements reduced per-occupied-room labor costs by approximately 1%
- Hotel EBITDA margins expanded 135 basis points to 32% through aggressive expense management
- GOP margins improved 60 basis points to 40%
- Property tax decline of $0.2 million and property insurance decline of $0.1 million on comparable hotels aided margins by 50 basis points
- San Diego RevPAR rebounded 5% on 6% ADR increase
- Washington D.C. RevPAR grew 3% despite tough inauguration comps
- Seattle RevPAR jumped 22% year-over-year
“As this proves, we are executing across multiple levels to enhance shareholder returns and our updated hotel EBITDA and AFFO per share guidance has been increased a strong 11 percent and 15 percent, respectively. Our total shareholder returns are best among lodging REITs in 2026, but we believe we are still undervalued and as such, will continue to aggressively repurchase shares using free cash flow and proceeds from any asset dispositions. We are excited about our future trajectory.”
Chatham Lodging Trust CEO, on the earnings call
Forward Guidance & Outlook
Chatham raised its full-year 2026 guidance significantly. RevPAR growth is now expected at 0.0% to 2.0% (RevPAR of $140-$142). Total hotel revenue guidance is $308M-$314M. Net loss to common shareholders is expected between $(7.3)M and $(2.9)M, or $(0.15) to $(0.06) per diluted share. Adjusted EBITDA is guided to $95.3M-$99.6M. Adjusted FFO is expected at $60.2M-$64.5M, or $1.21-$1.29 per diluted share, representing a 15% increase from prior guidance. Full-year Hotel EBITDA margins are expected at 35%. The 2026 capital expenditure budget is approximately $27 million, including $17 million for renovations at three hotels. Guidance assumes no additional acquisitions, dispositions, or equity issuance, and floating rate debt based on the SOFR forward curve.
CLDT YoY Financials
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