Chatham Lodging Trust reported a net loss of $4.5 million for the first quarter of 2026, a significant decline from the net income of $1.5 million recorded in the same period of 2025. Total revenue for the quarter was $67.5 million, down 1.6% from $68.6 million year-over-year. The decrease in revenue was primarily attributed to the sale of four hotels in 2025, which contributed $4.1 million in revenue during the first quarter of 2025 but generated no revenue in the current period. This decline was partially offset by a 1.0% increase in same-property revenue per available room (RevPAR) and the acquisition of six hotels in March 2026, which added $2.2 million in revenue.
In terms of operational metrics, Chatham Lodging Trust's same-property RevPAR increased to $128.23, driven by a slight increase in occupancy and average daily rate (ADR). The company reported occupancy rates of 72.5% for the first quarter of 2026, reflecting a marginal improvement from the previous year. The total hotel operating expenses decreased by 2.7% to $40.7 million, primarily due to the absence of expenses from the sold hotels, which had contributed $2.9 million in operating costs in the prior year.
Strategically, Chatham Lodging Trust made a significant acquisition in March 2026, purchasing a portfolio of six hotel properties for $92 million. This acquisition is expected to enhance the company's portfolio and revenue-generating capacity. The company also repurchased 904,927 common shares during the first quarter at an average price of $7.35 per share, as part of its ongoing share repurchase program, which has approximately $9.4 million remaining for future repurchases.
Chatham Lodging Trust's total assets increased to $1.24 billion as of March 31, 2026, up from $1.17 billion at the end of 2025, primarily due to the acquisition of new hotel properties. The company’s total liabilities also rose to $481.4 million, reflecting increased borrowings under its revolving credit facility, which amounted to $85 million at the end of the quarter. The leverage ratio stood at 24.6%, indicating a conservative capital structure relative to its hotel investments.
Looking ahead, Chatham Lodging Trust anticipates continued modest growth in the lodging industry, with expectations for RevPAR to increase throughout 2026. The company plans to invest approximately $20.5 million in renovations and improvements across its existing hotels, aiming to enhance operational performance and guest experience. The management remains focused on identifying suitable acquisition opportunities while maintaining a disciplined approach to capital management and operational efficiency.
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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