Chatham Lodging Trust Reports $68.6 Million Revenue and $1.5 Million Net Income in Q1 2025

Chatham Lodging Trust reported a total revenue of $68.6 million for the first quarter of 2025, reflecting a slight increase of 0.3% compared to $68.4 million in the same period of 2024. The revenue growth was primarily driven by a 3.8% increase in same-property revenue per available room (RevPAR), despite a decline in food and beverage revenue. The company recorded a net income of $1.5 million for the quarter, a significant turnaround from a net loss of $5.5 million in the prior year, attributed to improved operational performance and gains from hotel property sales.

In terms of operational metrics, Chatham Lodging Trust's room revenue remained relatively stable at $62.4 million, down slightly from $62.5 million in the previous year. The company experienced a decrease in food and beverage revenue, which fell to $1.7 million from $1.8 million. However, other operating revenues increased to $4.3 million, up from $3.8 million, indicating a positive trend in ancillary services. The company’s occupancy rate improved to 72.1%, up from 69.3% in the prior year, showcasing a recovery in business travel and hotel demand.

Strategically, Chatham Lodging Trust engaged in significant property transactions during the quarter, selling five hotels and acquiring one. The sales included properties in Houston, Nashville, and Minneapolis, generating a total of $15.5 million and $15 million from the respective transactions. The company’s investment in hotel properties decreased to $1.17 billion as of March 31, 2025, down from $1.20 billion at the end of 2024, reflecting the impact of these sales. The company continues to focus on enhancing its portfolio through strategic acquisitions and dispositions.

Chatham Lodging Trust's financial position remains stable, with total liabilities decreasing to $437.4 million from $462.7 million at the end of 2024. The company reported a leverage ratio of 22.3%, indicating a conservative approach to debt management. As of March 31, 2025, the company had $25.2 million in cash and cash equivalents, a decrease from $29.8 million at the end of the previous year, primarily due to cash used in financing activities, including debt repayments and distributions to shareholders.

Looking ahead, Chatham Lodging Trust anticipates continued growth in revenue driven by the recovery of the lodging industry, although it acknowledges potential challenges from inflation and competitive pressures. The company plans to invest approximately $18.6 million in renovations and improvements for its existing hotels throughout 2025. The management remains optimistic about the long-term outlook, focusing on enhancing operational efficiencies and maximizing shareholder value through strategic asset management.