Chatham Lodging Trust reported a decline in financial performance for the third quarter of 2025, with total revenue of $78.4 million, down 10.1% from $87.2 million in the same period last year. The decrease was primarily attributed to a 10.4% drop in room revenue, which totaled $71.9 million, and a 14.8% decline in food and beverage revenue. The company also noted that the sales of five hotels contributed to a loss of $7 million in revenue compared to the previous year. Net income for the quarter was $3.6 million, a decrease from $4.3 million in the prior year, while net income attributable to common shareholders was $1.5 million, or $0.03 per share.
For the nine months ending September 30, 2025, Chatham Lodging Trust reported total revenue of $227.3 million, down 6.1% from $242.1 million in the same period of 2024. The decline was driven by the sale of six hotels, which resulted in a revenue loss of $17.9 million. However, the company experienced a slight increase in same property revenue per available room (RevPAR), which rose by 0.2%. Net income for the nine-month period was $10.6 million, compared to $5.9 million in the previous year.
In terms of strategic developments, Chatham Lodging Trust acquired the Home2 Suites Phoenix Downtown hotel for $43.3 million in May 2024, which contributed $6.4 million in revenue during the nine months ended September 30, 2025. The company also sold several properties, including the Courtyard Houston-Medical Center and the Hampton Inn & Suites Houston-Medical Center, which were part of a broader strategy to optimize its portfolio. As of September 30, 2025, the company owned 34 hotels with a total of 5,166 rooms across 15 states and the District of Columbia.
Operationally, the company reported a decrease in hotel operating expenses, which fell by 8.7% to $44.0 million for the third quarter, largely due to the impact of hotel sales. The company’s leverage ratio stood at 20.6% as of September 30, 2025, with total debt of $343.2 million at a weighted average interest rate of approximately 6.29%. Chatham Lodging Trust also initiated a share repurchase program, authorizing the buyback of up to $25 million in common shares, with approximately $23 million remaining available for repurchase as of the end of the quarter.
Looking ahead, Chatham Lodging Trust anticipates continued challenges in the lodging industry, particularly with inflationary pressures and competitive market conditions. The company plans to invest approximately $5.7 million in renovations and improvements for its existing hotels in the remainder of 2025. Management remains focused on optimizing its portfolio and maintaining liquidity through cash reserves and available credit facilities, while also adhering to its dividend policy to distribute approximately 100% of its annual taxable income to shareholders.
About Chatham Lodging Trust
Chatham Lodging Trust is a Maryland REIT investing in upscale extended-stay and premium-branded select-service hotels across the U.S. The company owns and leases hotels operated by third-party managers, primarily under franchise brands like Marriott, Hilton, and Hyatt. Its business model focuses on disciplined acquisitions, asset management, and strategic partnerships to generate long-term shareholder value through income and appreciation.
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