Chatham Lodging Trust Reports $80.3M Revenue in Q2 2025, Down 7.2% Year-Over-Year

Chatham Lodging Trust reported a total revenue of $80.3 million for the second quarter of 2025, a decrease of 7.2% compared to $86.5 million in the same period of 2024. The decline in revenue was primarily attributed to a 7.1% drop in room revenue, which totaled $73.4 million, alongside a 12.4% decrease in food and beverage revenue. The company’s net income for the quarter was $5.5 million, down from $7.0 million a year earlier, reflecting the impact of hotel sales and inflationary pressures on operating costs.

In the first half of 2025, Chatham Lodging Trust's total revenue was $148.9 million, down 3.9% from $154.9 million in the first half of 2024. The company sold five hotels during this period, which contributed to a revenue decline of $3.7 million. However, the acquisition of a new hotel in Phoenix, Arizona, in May 2024 partially offset this loss, generating $4.9 million in revenue during the first half of 2025. The company’s net income for the six months ended June 30, 2025, was $7.0 million, a significant increase from $1.5 million in the prior year.

Operationally, Chatham Lodging Trust managed 34 hotels with a total of 5,166 rooms across 15 states and the District of Columbia as of June 30, 2025. The company reported an average occupancy rate of 81.5% for the second quarter, slightly down from 82.0% in the same quarter of 2024. The average daily rate (ADR) remained stable at approximately $190.63, while revenue per available room (RevPAR) decreased marginally to $155.37. The company’s total hotel operating expenses for the second quarter were $43.0 million, a reduction of 7.6% from the previous year, primarily due to the impact of hotel sales.

Chatham Lodging Trust has been actively managing its capital structure, with total debt of $353.2 million as of June 30, 2025, at a weighted average interest rate of approximately 6.46%. The company has a leverage ratio of 21.1%, indicating a conservative approach to debt management. In May 2025, the Board of Trustees authorized a $25 million share repurchase program, under which the company repurchased 20,480 shares at an average price of $7.02 during the second quarter. The company also declared dividends of $0.18 per common share for the first half of 2025, up from $0.14 in the same period of 2024.

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 $9.3 million in renovations and improvements for its existing hotels throughout the remainder of 2025. Management remains focused on maintaining operational efficiency and exploring opportunities for strategic acquisitions to enhance portfolio performance.