Open the filing on EDGARChatham Lodging Announces Third Quarter 2026 Results
Third Quarter RevPAR Soars, Margins Rise, AFFO per Share Surges 27%
WEST PALM BEACH, Fla., November 5, 2026 - Chatham Lodging Trust (NYSE: CLDT), a lodging real estate investment trust (REIT) that invests in upscale, extended-stay hotels and premium-branded, select-service hotels, today announced results for the third quarter ended September 30, 2026.
Third Quarter 2026 Key Operating Metrics
- Revenue Per Available Room (RevPAR) - Surged over 8 percent to $161 compared to the 2025 third quarter for the 39 comparable hotels and represents an all-time third quarter high following an all-time second quarter mark. Occupancy increased 390 basis points to 83 percent, and average daily rate (ADR) rose 310 basis points to $194.
- RevPAR for the four Silicon Valley hotels accelerated 23 percent to $174.
- RevPAR for the recently acquired six-hotel portfolio jumped 10 percent to $132, easily besting underwriting expectations.
- October RevPAR for the 39 hotels climbed 8 percent to $170, an all-time high for October.
- Net Income - More than doubled net income applicable to common shareholders of $5 million compared to net income of $2 million in the 2025 third quarter. Net income to common shareholders per diluted common share was $0.11 versus $0.03 for the same period last year.
- Hotel Margins - Advanced GOP margins 110 basis points higher to 45 percent in the 2026 third quarter. Adjusted Hotel EBITDA margins rose 190 basis points to 39 percent in the 2026 third quarter.
- Adjusted EBITDA - Increased adjusted EBITDA $6 million or 21 percent to $32 million.
- Adjusted FFO - AFFO per diluted share accelerated 31 percent to $0.46 from $0.35 compared to the 2025 third quarter. AFFO was $23 million for the third quarter of 2026 compared to $18 million for the same period last year. Beginning in 2026, like all other peers, Chatham adds back share-based compensation expense in its calculation of adjusted FFO per share, and prior periods have been recast.
The following chart summarizes the consolidated financial results for the three and nine months ended September 30, 2026, and 2025, based on all properties owned during those periods, except for RevPAR, which is based on the comparable 39 hotels ($ in millions, except margin percentages and per share data):
| Three Months Ended | Nine Months Ended |
|---|
| September 30, | September 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Net income to common shareholders | $5 | $2 | $5 | $4 |
| Diluted net income per common share | $0.11 | $0.03 | $0.11 | $0.09 |
| RevPAR | $161 | $149 | $149 | $143 |
| GOP Margin | 45% | 44% | 44% | 43% |
| Adjusted Hotel EBITDA Margin | 39% | 37% | 38% | 36% |
| Adjusted EBITDA | $32 | $26 | $83 | $73 |
| AFFO | $23 | $18 | $57 | $47 |
| AFFO per diluted share | $0.46 | $0.35 | $1.13 | $0.91 |
| Dividends declared per common share | $0.10 | $0.09 | $0.30 | $0.27 |
Third Quarter 2026 Highlights
- Grew RevPAR more than 8 percent with July and September RevPAR representing the highest in Chatham’s 16-year history. Chatham’s outperformance was driven by strong results in Silicon Valley and the recently acquired six-hotel portfolio.
- Expanded gross operating profit margins by approximately 110 basis points to 45 percent and Adjusted Hotel EBITDA margins by a strong 190 basis points in the quarter to 39 percent through aggressive expense management, especially with regard to labor and productivity.
Jeffrey H. Fisher, Chatham’s president and chief executive officer, emphasized, “Operating results have been fantastic this year. Strong top-line growth and margin expansion, as well as excellent strategic decisions with respect to our repurchase plan and capital recycling, have all contributed to phenomenal growth in EBITDA and FFO per share of 21 and 31 percent, respectively.
“Our total shareholder returns are the best among lodging REITs in 2026, and we are confident in our position to continue to outperform based on the following:
- Industry-wide, supply/demand should benefit owners for the foreseeable future.
- Our balance sheet is in great condition, so we can add value via acquisitions and/or repurchasing shares.
- Accelerating demand at our four Silicon Valley hotels meaningfully increases EBITDA and FFO.
- Looking a bit further out on the timeline, our Home2 Portland, Maine development will open in 2028 and immediately be accretive.”
Acquisition Portfolio Performance
In March, Chatham acquired six Hilton-branded hotels comprising 589 rooms for $92 million. The acquired portfolio produced RevPAR growth of 10 percent in the third quarter to $132 following increases of 9 percent in the second quarter and 5 percent in the first quarter. Third quarter 2026 occupancy was up 8 percent to 85 percent, and ADR was up 2 percent to $157. For the third quarter, the portfolio produced GOP and Adjusted Hotel EBITDA margins of 45 and 41 percent, respectively.
Fisher highlighted, “The portfolio has achieved great results since our acquisition, and we are very proud of the efforts of our teams at the hotels. Third quarter RevPAR was up 18 percent in Effingham, 11 percent in Joplin and 2 percent in Paducah. As we enter the seasonally slower months in these markets and shift gears toward 2027, we should benefit from continued momentum in business travel in these markets and a full calendar year of events at the expanded athletic facilities in Joplin and Paducah.”
Hotel RevPAR Performance
The chart below summarizes key hotel financial statistics for the 39 comparable hotels owned as of September 30, 2026, compared to the third quarter of 2025:
| Q3 2026 RevPAR | Q3 2025 RevPAR |
|---|
| Occupancy | 83% | 79% |
| ADR | $194 | $189 |
| RevPAR | $161 | $149 |
The chart below summarizes RevPAR statistics by month for the company's 39 comparable hotels:
| July | August | September | October |
|---|
| Occupancy | 84% | 82% | 83% | 83% |
| ADR | $201 | $187 | $195 | $205 |
| RevPAR | $169 | $153 | $162 | $170 |
| RevPAR - prior year | $154 | $142 | $151 | $158 |
| % Change in RevPAR vs. prior year | 10% | 8% | 7% | 8% |
Dennis Craven, Chatham's chief operating officer, commented, “Our third quarter RevPAR growth of more than 8 percent benefitted from strong performance across a lot of our major markets. Third quarter occupancy of 83 percent is our highest quarterly occupancy since the third quarter of 2019. Thirteen hotels, or one-third of our portfolio, experienced double-digit RevPAR in the quarter. Our third quarter RevPAR growth is our highest quarterly growth since the pandemic related recovery.”
RevPAR performance for Chatham’s largest markets (markets that account for at least five percent of Adjusted Hotel EBITDA contribution over the last twelve months) is presented below:
| % of LTM EBITDA | Q3 2026 RevPAR | Q3 2025 RevPAR | Change vs. Q3 2025 |
|---|
| 39 - Hotel Portfolio | | $161 | $149 | 8% |
| Silicon Valley | 18% | $174 | $142 | 23% |
| Washington, D.C. | 9% | $165 | $143 | 15% |
| Los Angeles | 9% | $192 | $182 | 5% |
| Greater New York | 8% | $195 | $197 | (1)% |
| Coastal Northeast | 8% | $259 | $268 | (3)% |
| Seattle | 5% | $190 | $184 | 4% |
| San Diego | 5% | $198 | $194 | 2% |
| Dallas | 5% | $100 | $84 | 20% |
Craven remarked, “Silicon Valley continues to be our hottest market and sets us apart from our peers moving forward. Exceptional growth in our largest market acts as a catalyst for meaningful outperformance. Interestingly, performance was even better outside of the World Cup as business travelers chose to stay away during those dates. Our two Sunnyvale hotels experienced RevPAR growth of 31 percent in the quarter.
“Our Washington, D.C. hotels had a great quarter as well, with RevPAR up 16 percent with our Embassy Suites Springfield and Residence Inn Tysons Corner, Va., hotels benefitting from growing corporate and government demand and easier year-over-year comps due to the 2025 shutdowns and threats of shutdowns.”
Craven added, “Los Angeles RevPAR rose 5 percent in the quarter with growth at all three of our hotels, highlighted by 10 percent growth in Marina del Rey. Our New York hotels experienced a slight RevPAR decline, but that is entirely attributable to a tough comp at our Holtsville Residence Inn that benefitted from the Ryder Cup in 2025.
“Within our coastal northeast market, in addition to lower levels of inbound travel from Canada to the region, a new Homewood Suites that opened earlier this year continues to weigh on our Portsmouth performance. Lastly, our Dallas hotels, particularly the downtown Dallas Courtyard, had a great quarter as business travel demand helped to offset depressed convention-related business associated with the convention center closure.”
Hotel Operations Performance
The chart below summarizes key hotel operating performance measures for the three months ended September 30, 2026, and 2025. RevPAR is based on the 39 comparable hotels, and all other data is based on all properties owned during that period. Gross operating profit is calculated as Adjusted Hotel EBITDA plus property taxes, ground rent and insurance (in millions, except for RevPAR and margin percentages):
| Q3 2026 | Q3 2025 |
|---|
| RevPAR | $161 | $149 |
| Gross operating profit | $41 | $34 |
| Adjusted Hotel EBITDA | $35 | $29 |
| GOP margin | 45% | 44% |
| Adjusted Hotel EBITDA margin | 39% | 37% |
Craven concluded, “We had another great quarter managing expenses across our portfolio, enabling us to significantly increase margins with our GOP and Adjusted Hotel EBITDA margins jumping 110 and 190 basis points, respectively. When you look at our 33 comparable hotels versus last year on a per occupied room basis, we managed to limit total hotel expense growth to 2.5 percent and our department expenses to 2.9 percent, allowing us to generate healthy flow-through.”
Corporate Update
The chart below summarizes key financial performance measures for the three months ended September 30, 2026 and 2025. Corporate EBITDA is calculated as Adjusted Hotel EBITDA minus cash corporate general and administrative expenses and is before debt service and capital expenditures. Debt service includes interest expense and principal amortization on its secured debt, as well as dividends on its preferred shares of $2 million per quarter. Cash flow before CapEx is calculated as corporate EBITDA less debt service. Amounts are in millions, except RevPAR.
| Q3 2026 | Q3 2025 |
|---|
| RevPAR | $161 | $149 |
| Adjusted Hotel EBITDA | $35 | $29 |
| Corporate EBITDA | $32 | $26 |
| Debt Service & Preferred | $(9) | $(8) |
| Cash flow before CapEx | $23 | $18 |
Share Buy-Back Plan
During the three months ending September 30, 2026, the company did not repurchase any shares. Since inception, the company repurchased 2.5 million shares, which equated to approximately 5 percent of outstanding shares/units, at a weighted-average price per share of $7.29, for an aggregate purchase price of approximately $18 million under its $25 million plan.
Hotel Investments
During the third quarter of 2026, the company incurred capital expenditures of approximately $3 million, and year-to-date has spent approximately $17 million. Chatham’s 2026 capital expenditure budget is approximately $27 million, including renovations at three hotels expected to cost approximately $17 million. The three hotels scheduled for renovation in 2026 are the Residence Inn San Diego Gaslamp, Homewood Suites Farmington, Conn., and Hyatt Place Pittsburgh, Pa. Each of these renovations will commence in the fourth quarter.
Home2 Suites by Hilton Portland Development
In June, Chatham commenced construction. The company expects the total development costs to be approximately $45 million, inclusive of approximately 5,500 square feet of commercial space that will be sold. The company has incurred costs to date of approximately $5 million. The hotel is expected to open during the second quarter of 2028.
Capital Markets & Capital Structure
As of June 30, 2026, the company had net debt of $394 million (total consolidated debt less unrestricted cash). Total debt outstanding as of September 30, 2026, was $408 million at an average interest rate of 5.9 percent, comprised of $143 million of fixed-rate mortgage debt at an average interest rate of 7.2 percent, $200 million outstanding on its term loan at a rate of 5.1 percent and $65 million outstanding on the company's $300 million revolving credit facility at an interest rate of 5.1 percent. Based on the ratio of the company’s net debt to hotel investments at cost, Chatham’s leverage ratio was approximately 23 percent at September 30, 2026.
Jeremy Wegner, Chatham’s chief financial officer remarked, “We are generating significant free cash flow after dividends and capital expenditures. We have already reduced borrowings outstanding on our credit facility by $25 million since closing the Midwest acquisition in March, thus lessening risk related to rising interest rates while providing added flexibility to make external acquisitions, repurchase shares or fund any future dividend increases.”
Dividend
In September, the board of trustees declared quarterly common and preferred dividends of $0.10 per share and $0.41406 per share, respectively, payable October 15, 2026, to shareholders of record as of September 30, 2026.
Guidance
The company's guidance reflects the following assumptions:
- Floating rate debt based on SOFR forward curve.
- No additional acquisitions, dispositions, debt or equity issuance.
- Effective January 1, 2026, the company excludes non-cash share-based compensation from its calculation of Adjusted FFO to make its presentation of this measure consistent with most other public lodging REITs.
| 2026 |
|---|
| RevPAR | $145 - $146 |
| RevPAR growth | 4.0% to 4.5% |
| Total hotel revenue | $320M - $321M |
| Net income (loss) to common shares | $(0.4)M - $0.7M |
| Net income (loss) per diluted share | $(0.01) - $0.02 |
| Adjusted EBITDA | $104.2M - $105.3M |
| Adjusted FFO | $68.7M - $69.9M |
| Adjusted FFO per diluted share | $1.38 - $1.40 |
| Adjusted Hotel EBITDA margins | 36.3% - 36.5% |
| Corporate cash administrative expenses | $12.1M |
| Corporate non-cash administrative expenses | $6.1M |
| Interest income | $0.1M |
| Interest expense (excluding fee amortization) | $25.0M |
| Non-cash amortization of deferred fees | $2.2M |
| Weighted average shares/units outstanding | 49.8M |
The company provides guidance but does not undertake to update it for any developments in its business. Achievement of the results is subject to the risks disclosed in the company’s filings with the Securities and Exchange Commission.
Earnings Call
The company will hold its third quarter 2026 conference call later today at 9:00 a.m. Eastern Time. Shareholders and other interested parties may listen to a simultaneous webcast of the conference call on the Internet by logging onto Chatham’s website, www.chathamlodgingtrust.com, or may participate in the conference call by dialing 1-800-715-9871 or 1-646-307-1963 and referencing the passcode, 5519068, Chatham Lodging Trust. A recording of the call will be available by telephone until November 12, 2026, at 11:59 p.m. Eastern Time, by dialing 1-800-770-2030 or 1-609-800-9909, playback ID 5519068. A replay of the conference call will be posted on Chatham’s website.
About Chatham Lodging Trust
Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust (REIT) focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns 39 hotels totaling 5,610 rooms/suites in 18 states and the District of Columbia. Additional information about Chatham may be found at chathamlodgingtrust.com.
Forward-Looking Statements
Forward-looking statements notice
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements generally are characterized by the use of the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may” or similar expressions. These forward-looking statements include information about possible or assumed future results of the lodging industry and our business, financial condition, liquidity, results of operations, cash flow and plans and objectives. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, our actual results could differ materially from those set forth in the forward-looking statements. Important factors that could cause our actual results to differ materially from expected results include, but are not limited to: national and local economic and business conditions, including the effect on travel of potential terrorist attacks, that will affect occupancy rates at our hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of our indebtedness and our ability to meet covenants in our debt agreements; relationships with property managers; our ability to maintain our properties in a suitable manner, including meeting capital expenditure requirements; our ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; our ability to complete acquisitions and dispositions; our ability to continue to satisfy complex rules in order for us to remain a REIT for federal income tax purposes; and inaccuracies of our accounting estimates and the uncertainty and economic impact of pandemics, epidemics or other public health emergencies or fear of such events. Given these uncertainties, undue reliance should not be placed on such statements. We undertake no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect future events or circumstances or to reflect the occurrence of unanticipated events. The forward-looking statements should also be read in light of the risk factors identified in the “Risk Factors” section in our Annual Report on Form 10-K for the year ended December 31, 2025, as updated by our subsequent filings with the SEC under the Exchange Act.
Non-GAAP Financial Measures
Included in this press release are certain “non-GAAP financial measures,” within the meaning of Securities and Exchange Commission (SEC) rules and regulations, that are different from measures calculated and presented in accordance with GAAP (generally accepted accounting principles). The company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its operating performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA, (4) EBITDAre, (5) Adjusted EBITDA and (6) Adjusted Hotel EBITDA. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss as prescribed by GAAP as a measure of its operating performance.
FFO As Defined by Nareit and Adjusted FFO
The company calculates FFO in accordance with standards established by Nareit, which defines FFO as net income or loss (calculated in accordance with GAAP), excluding gains or losses from sales of real estate, impairment write-downs, the cumulative effect of changes in accounting principles, plus depreciation and amortization (excluding amortization of deferred financing costs), and after adjustments for unconsolidated partnerships and joint ventures following the same approach. The company believes that the presentation of FFO provides useful information to investors regarding its operating performance because it measures its performance without regard to specified non-cash items such as real estate depreciation and amortization, gain or loss on sale of real estate assets and certain other items that the company believes are not indicative of the property level performance of its hotel properties. The company believes that these items reflect historical cost of its asset base and its acquisition and disposition activities and are less reflective of its ongoing operations, and that by adjusting to exclude the effects of these items, FFO is useful to investors in comparing its operating performance between periods and between REITs that also report using the Nareit definition.
The company calculates Adjusted FFO by adjusting FFO for certain additional items that are not addressed in Nareit’s definition of FFO, including other charges, losses on the early extinguishment of debt and similar items related to its unconsolidated real estate entities that it believes do not represent costs related to hotel operations. The company believes that Adjusted FFO provides investors with another financial measure that may facilitate comparisons of operating performance between periods and between REITs that make similar adjustments to FFO.
EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA
The company calculates EBITDA for purposes of the credit facility debt as net income or loss excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; (3) depreciation and amortization; and (4) unconsolidated real estate entity items including interest, depreciation and amortization excluding gains and losses from sales of real estate. The company believes EBITDA is useful to investors in evaluating and facilitating comparisons of its operating performance because it helps investors compare the company's operating performance between periods and between REITs by removing the impact of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from its operating results. In addition, the company uses EBITDA as one measure in determining the value of hotel acquisitions and dispositions.
The company calculates EBITDAre in accordance with Nareit guidelines, which defines EBITDAre as net income or loss excluding interest expense, income tax expense, depreciation and amortization expense, gains or losses from sales of real estate, impairment, and adjustments for unconsolidated joint ventures. We believe that the presentation of EBITDAre provides useful information to investors regarding the company's operating performance and can facilitate comparisons of performance between periods and between REITs.
The company calculates Adjusted EBITDA by adjusting EBITDA for certain additional items, including other charges, losses on the early extinguishment of debt, amortization of non-cash share-based compensation and similar items related to its unconsolidated real estate entities, which it believes are not indicative of the performance of its underlying hotel properties entities. The company believes that Adjusted EBITDA provides investors with another financial measure that may facilitate comparisons of operating performance between periods and between REITs that report similar measures.
Adjusted Hotel EBITDA is defined as net income before interest, income taxes, depreciation and amortization, corporate general and administrative, impairment loss, loss on early extinguishment of debt, interest and other income and income or loss from unconsolidated real estate entities. The company presents Adjusted Hotel EBITDA because the company believes it is useful to investors in comparing its hotel operating performance between periods and comparing its Adjusted Hotel EBITDA to those of its peer companies. Adjusted Hotel EBITDA represents the results of operations for our wholly owned hotels only.
Although the company presents FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA because it believes they are useful to investors in comparing the company's operating performance between periods and between REITs that report similar measures, these measures have limitations as analytical tools. Some of these limitations are:
- FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA do not reflect the company’s cash expenditures, or future requirements, for capital expenditures or contractual commitments;
- FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA do not reflect changes in, or cash requirements for, the company’s working capital needs;
- FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA do not reflect funds available to make cash distributions;
- EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA do not reflect the interest expense, or the cash requirements to service interest or principal payments, on the company’s debts;
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may need future replacement, and FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA do not reflect any cash requirements for such replacements;
- Non-cash compensation is and will remain a key element of the company’s overall long-term incentive compensation package, although the company excludes it as an expense when evaluating its ongoing operating performance for a particular period using Adjusted EBITDA;
- Adjusted FFO, Adjusted EBITDA and Adjusted Hotel EBITDA do not reflect the impact of certain cash charges (including acquisition transaction costs) that result from matters the company considers not to be indicative of the underlying performance of its hotel properties; and
- Other companies in the company’s industry may calculate FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA differently than the company does, limiting their usefulness as a comparative measure.
In addition, FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA do not represent cash generated from operating activities as determined by GAAP and should not be considered as alternatives to net income or loss, cash flows from operations or any other operating performance measure prescribed by GAAP. FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA are not measures of the company’s liquidity. Because of these limitations, FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP.
The company compensates for these limitations by relying primarily on its GAAP results and using FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA only supplementally. The company’s consolidated financial statements and the notes to those statements included elsewhere are prepared in accordance with GAAP. The company’s reconciliation of FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA to net income attributable to common shareholders, as determined under GAAP, is set forth below.
CHATHAM LODGING TRUST
Consolidated Balance Sheets
| September 30, | December 31, |
|---|
| 2026 | 2025 |
|---|
| (unaudited) | |
|---|
| Assets: | | |
| Investment in hotel properties, net | $1,169,519 | $1,106,890 |
| Investment in hotel properties under development | 4,540 | - |
| Cash and cash equivalents | 14,021 | 24,435 |
| Restricted cash | 8,416 | 8,203 |
| Right of use asset, net | 16,450 | 16,912 |
| Hotel receivables (net of allowance for doubtful accounts of $304 and $261, respectively) | 3,487 | 2,831 |
| Deferred costs, net | 6,375 | 7,384 |
| Prepaid expenses and other assets | 7,120 | 3,726 |
| Total assets | $1,229,928 | $1,170,381 |
| Liabilities and Equity: | | |
| Mortgage debt, net | $141,652 | $141,475 |
| Revolving credit facility | 65,000 | - |
| Unsecured term loan, net | 197,877 | 197,438 |
| Accounts payable and accrued expenses (including $952 and $234 due to related parties, respectively) | 34,884 | 26,648 |
| Lease liability | 19,634 | 20,067 |
| Distributions payable | 7,204 | 6,704 |
| Total liabilities | 466,251 | 392,332 |
| Commitments and contingencies | | |
| Equity: | | |
| Shareholders’ Equity: | | |
| Preferred shares, $0.01 par value, 100,000,000 shares authorized; 4,800,000 and 4,800,000 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively | 48 | 48 |
| Common shares, $0.01 par value, 500,000,000 shares authorized; 46,570,867 and 47,708,587 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively | 466 | 477 |
| Additional paid-in capital | 1,030,137 | 1,039,804 |
| Accumulated deficit | (308,329) | (299,527) |
| Total shareholders’ equity | 722,322 | 740,802 |
| Noncontrolling Interests: | | |
| Noncontrolling interest in Operating Partnership | 41,355 | 37,247 |
| Total equity | 763,677 | 778,049 |
| Total liabilities and equity | $1,229,928 | $1,170,381 |
CHATHAM LODGING TRUST
Consolidated Statements of Operations
(unaudited)
| For the three months ended | For the nine months ended |
|---|
| September 30, | September 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Revenue: | | | | |
| Room | $83,339 | $71,923 | $225,186 | $207,737 |
| Food and beverage | 1,598 | 1,561 | 4,804 | 5,083 |
| Other | 5,686 | 4,649 | 15,420 | 13,715 |
| Reimbursable costs from related parties | 298 | 276 | 819 | 802 |
| Total revenue | 90,921 | 78,409 | 246,229 | 227,337 |
| Expenses: | | | | |
| Hotel operating expenses: | | | | |
| Room | 18,004 | 15,469 | 48,635 | 45,255 |
| Food and beverage | 1,350 | 1,368 | 4,064 | 4,192 |
| Telephone | 418 | 292 | 1,145 | 884 |
| Other hotel operating | 1,527 | 1,171 | 3,912 | 3,353 |
| General and administrative | 7,384 | 6,667 | 21,675 | 20,703 |
| Franchise and marketing fees | 7,230 | 6,349 | 19,456 | 18,215 |
| Advertising and promotions | 1,921 | 1,923 | 5,491 | 5,185 |
| Utilities | 4,107 | 3,597 | 10,270 | 9,561 |
| Repairs and maintenance | 4,197 | 3,797 | 11,727 | 11,463 |
| Management fees paid to related parties | 3,064 | 2,600 | 8,284 | 7,575 |
| Insurance | 903 | 813 | 2,662 | 2,459 |
| Total hotel operating expenses | 50,105 | 44,046 | 137,321 | 128,845 |
| Depreciation and amortization | 16,053 | 14,707 | 46,557 | 45,133 |
| Property taxes, ground rent and insurance | 5,486 | 5,328 | 15,928 | 17,205 |
| General and administrative | 4,718 | 4,142 | 13,957 | 12,741 |
| Other charges | (122) | 16 | 360 | 24 |
| Reimbursable costs from related parties | 298 | 276 | 819 | 802 |
| Total operating expenses | 76,538 | 68,515 | 214,942 | 204,750 |
| Operating income before gain on sale of hotel properties | 14,383 | 9,894 | 31,287 | 22,587 |
| (Loss) gain on sale of hotel properties | (82) | 39 | 49 | 7,507 |
| Operating income | 14,301 | 9,933 | 31,336 | 30,094 |
| Interest and other income | 28 | 71 | 130 | 192 |
| Interest expense, including amortization of deferred fees | (6,805) | (6,243) | (19,909) | (19,508) |
| Loss on early extinguishment of debt | - | (174) | - | (174) |
| Income before income tax expense | 7,524 | 3,587 | 11,557 | 10,604 |
| Income tax expense | (62) | - | (187) | - |
| Net income | 7,462 | 3,587 | 11,370 | 10,604 |
| Net income attributable to noncontrolling interests | (207) | (56) | (210) | (163) |
| Net income attributable to Chatham Lodging Trust | 7,255 | 3,531 | 11,160 | 10,441 |
| Preferred dividends | (1,987) | (1,987) | (5,962) | (5,962) |
| Net income attributable to common shareholders | $5,268 | $1,544 | $5,198 | $4,479 |
| Income per common share - basic: | | | | |
| Net income attributable to common shareholders | $0.11 | $0.03 | $0.11 | $0.09 |
| Income per common share - diluted: | | | | |
| Net income attributable to common shareholders | $0.11 | $0.03 | $0.11 | $0.09 |
| Weighted average number of common shares outstanding: | | | | |
| Basic | 46,550,856 | 48,910,697 | 46,809,650 | 48,956,588 |
| Diluted | 48,089,260 | 49,600,250 | 48,323,356 | 50,068,092 |
| Distributions declared per common share: | $0.10 | $0.09 | $0.30 | $0.27 |
CHATHAM LODGING TRUST
Reconciliation of Net Income to Adjusted FFO, EBITDA, EBITDAre and Adjusted EBITDA
| For the three months ended | For the nine months ended |
|---|
| September 30, | September 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Funds From Operations (“FFO”): | | | | |
| Net income | $7,462 | $3,587 | $11,370 | $10,604 |
| Preferred dividends | (1,987) | (1,987) | (5,962) | (5,962) |
| Net income attributable to common shares and common units | 5,475 | 1,600 | 5,408 | 4,642 |
| Loss (gain) on sale of hotel properties | 82 | (39) | (49) | (7,507) |
| Depreciation of hotel properties owned | 15,531 | 14,201 | 45,010 | 43,556 |
| FFO attributable to common share and unit holders | 21,088 | 15,762 | 50,369 | 40,691 |
| Share-based compensation | 1,524 | 1,546 | 4,559 | 4,710 |
| Amortization of finance lease assets | 454 | 457 | 1,360 | 1,428 |
| Other charges | (122) | 16 | 360 | 24 |
| Loss on early extinguishment of debt | - | 174 | - | 174 |
| Adjusted FFO attributable to common share and unit holders | $22,944 | $17,955 | $56,648 | $47,027 |
| Weighted average number of common shares and units | | | | |
| Basic | 48,356,016 | 50,631,283 | 48,569,270 | 50,688,964 |
| Diluted | 49,894,420 | 51,320,836 | 50,082,976 | 51,800,467 |
| For the three months ended | For the nine months ended |
|---|
| September 30, | September 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”): | | | | |
| Net income | $7,462 | $3,587 | $11,370 | $10,604 |
| Interest expense, including amortization of deferred fees | 6,805 | 6,243 | 19,909 | 19,508 |
| Income tax expense | 62 | - | 187 | - |
| Depreciation and amortization | 16,053 | 14,707 | 46,557 | 45,133 |
| EBITDA | 30,382 | 24,537 | 78,023 | 75,245 |
| Loss (gain) on sale of hotel properties | 82 | (39) | (49) | (7,507) |
| EBITDAre | 30,464 | 24,498 | 77,974 | 67,738 |
| Other charges | (122) | 16 | 360 | 24 |
| Loss on early extinguishment of debt | - | 174 | - | 174 |
| Share-based compensation | 1,524 | 1,546 | 4,559 | 4,710 |
| Adjusted EBITDA | $31,866 | $26,234 | $82,893 | $72,646 |
CHATHAM LODGING TRUST
Reconciliation of Net Income to Adjusted Hotel EBITDA
| | For the three months ended | For the nine months ended |
|---|
| | September 30, | September 30, |
|---|
| | 2026 | 2025 | 2026 | 2025 |
|---|
| Net income | $7,462 | $3,587 | $11,370 | $10,604 |
| Add: | Interest expense, including amortization of deferred fees | 6,805 | 6,243 | 19,909 | 19,508 |
| Depreciation and amortization | 16,053 | 14,707 | 46,557 | 45,133 |
| Corporate general and administrative | 4,718 | 4,142 | 13,957 | 12,741 |
| Other charges | - | 16 | 360 | 24 |
| Income tax expense | 62 | - | 187 | - |
| Loss on early extinguishment of debt | - | 174 | - | 174 |
| Loss on sale of hotel properties | 82 | - | - | - |
| Less: | Interest and other income | (28) | (71) | (130) | (192) |
| Other charges | (122) | - | - | - |
| Gain on sale of hotel properties | - | (39) | (49) | (7,507) |
| Adjusted Hotel EBITDA | $35,032 | $28,759 | $92,161 | $80,485 |
CHATHAM LODGING TRUST
Reconciliations of Guidance Net Income to FFO, Adjusted FFO,
EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA
| For the year ended |
|---|
| December 31, 2026 |
|---|
| Low-End | High-End |
|---|
| Funds From Operations (“FFO”): | | |
| Net income | $7,573 | $8,734 |
| Preferred dividends | (8,000) | (8,000) |
| Net (loss) income attributable to common shares and common units | (427) | 734 |
| Gain on sale of hotel properties | (50) | (50) |
| Depreciation of hotel properties owned | 60,859 | 60,859 |
| FFO attributable to common share and unit holders | 60,382 | 61,543 |
| Share-based compensation | 6,100 | 6,100 |
| Amortization of finance lease assets | 1,885 | 1,885 |
| Other charges | 359 | 359 |
| Adjusted FFO attributable to common share and unit holders | $68,726 | $69,887 |
| Weighted average number of common shares and units | | |
| Diluted | 49,891,000 | 49,891,000 |
| Adjusted FFO per diluted share | $1.38 | $1.40 |
| For the year ended |
|---|
| December 31, 2026 |
|---|
| Low-End | High-End |
|---|
| Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”): | | |
| Net income | $7,573 | $8,734 |
| Interest expense, including amortization of deferred fees | 26,900 | 26,900 |
| Income tax expense | 248 | 248 |
| Depreciation and amortization | 63,044 | 63,044 |
| EBITDA | 97,765 | 98,926 |
| Gain on sale of hotel properties | (50) | (50) |
| EBITDAre | 97,715 | 98,876 |
| Other charges | 359 | 359 |
| Share-based compensation | 6,100 | 6,100 |
| Adjusted EBITDA | $104,174 | $105,335 |
| | For the year ended |
|---|
| | December 31, 2026 |
|---|
| | Low-End | High-End |
|---|
| Net income | $7,573 | $8,734 |
| Add: | Interest expense, including amortization of deferred fees | 26,900 | 26,900 |
| Depreciation and amortization | 63,044 | 63,044 |
| Corporate general and administrative | 18,200 | 18,200 |
| Other charges | 359 | 359 |
| Income tax expense | 248 | 248 |
| Less: | Interest and other income | (100) | (100) |
| Gain on sale of hotel properties | (50) | (50) |
| Adjusted Hotel EBITDA | $116,174 | $117,335 |
| Total revenue | $321,138 | $322,567 |
| Reimbursable costs from related parties | (1,100) | (1,100) |
| Hotel revenue | $320,038 | $321,467 |
| Adjusted Hotel EBITDA margin | 36.3% | 36.5% |
Contacts
Dennis Craven (Company) · Chief Operating Officer · (561) 227-1386
Chris Daly (Media) · DG Public Relations · (703) 864-5553