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Jun 30, 2025
Chatham Q2 2025 Earnings Report
Chatham Lodging announced its second quarter 2025 results, reporting a slight RevPAR decline but maintaining strong occupancy and ADR, alongside a decrease in net income and adjusted EBITDA compared to the previous year.
Key Takeaways
Chatham Lodging Trust experienced a slight decline in RevPAR for the second quarter of 2025, falling less than 1 percent to $155, but managed to hold ADR steady and maintain strong occupancy. Net income and adjusted EBITDA saw decreases, primarily due to the impact of hotel sales. The company completed the sale of five low RevPAR hotels, de-leveraged its balance sheet, and commenced a share repurchase plan, positioning itself for future growth through acquisitions and share repurchases.
RevPAR for the 34 comparable hotels declined less than 1 percent to $155, with ADR holding at $191 and occupancy at 82 percent.
Net income applicable to common shareholders decreased to $3.4 million from $4.9 million in Q2 2024, with diluted EPS at $0.07.
Adjusted EBITDA declined by $2.9 million to $28.5 million, primarily due to the impact from hotels sold.
The company completed the sale of five low RevPAR hotels for an aggregate of $83 million, significantly de-leveraging its balance sheet to 21 percent net debt to hotel investments.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Chatham Lodging Trust anticipates a mixed performance for the remainder of 2025, with RevPAR growth projected to range from -1.5% to 0.5% for Q3 and -1% to 1% for Q4. The company expects total hotel revenue between $78.8 million and $80.3 million for Q3, and net income to common shares between $0.0 million and $2.0 million. Adjusted EBITDA is projected to be between $24.7 million and $26.8 million for Q3, and Adjusted FFO per diluted share between $0.29 and $0.33.
Positive Outlook
- RevPAR is projected to turn positive in May and June, finishing better than guidance.
- Improving business travel demand is expected in August, September, and the fourth quarter.
- Leisure demand-driven hotels are performing well, with RevPAR up 4 percent in the quarter.
- The company expects to continue outperforming the industry in 2025.
- The completion of hotel sales and de-leveraging of the balance sheet positions the company for future acquisitions and share repurchases.
Challenges Ahead
- RevPAR is projected to decline in Q3 2025, with a range of -1.5% to 0.5%.
- Net income to common shares is projected to be low, ranging from $0.0 million to $2.0 million for Q3 2025.
Historical Earnings Impact
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