Chatham Lodging Trust Reports $87.8 Million Revenue for Q2 2026, Driven by Acquisitions

Chatham Lodging Trust reported a total revenue of $87.8 million for the three months ended June 30, 2026, marking a 9.4% increase from $80.3 million in the same period of 2025. The growth was primarily driven by a 3.3% increase in same-property revenue per available room (RevPAR) and the acquisition of six hotels, which contributed approximately $7.3 million in revenue. Room revenue, which constitutes the majority of the company's income, rose to $80.6 million, up from $73.4 million year-over-year. For the six months ended June 30, 2026, total revenue reached $155.3 million, a 4.3% increase compared to $148.9 million in the prior year.

The company's net income for the second quarter was $8.5 million, compared to $5.5 million in the same quarter of 2025. This increase in profitability was attributed to higher revenues and effective cost management, despite a rise in hotel operating expenses, which increased by 8.2% to $46.5 million. The increase in expenses was largely due to the operational costs associated with the newly acquired hotels and inflationary pressures. For the first half of 2026, net income was reported at $4.0 million, down from $7.0 million in the previous year, reflecting the impact of hotel sales in 2025.

Strategically, Chatham Lodging Trust completed the acquisition of a portfolio of six hotels for $92 million on March 3, 2026. This acquisition included properties located in Paducah, KY, Joplin, MO, and Effingham, IL. The company also sold two hotels in 2025, which contributed to a decrease in revenue from those properties in the current reporting period. As of June 30, 2026, Chatham owned 39 hotels with a total of 5,610 rooms across 18 states and the District of Columbia.

Operationally, the company reported a slight decrease in occupancy rates, which fell to 80.9% from 81.4% year-over-year, while the average daily rate (ADR) increased by 3.9% to $195.34. The overall hotel operating performance metrics indicate a stable demand environment, although the company remains cautious about potential economic fluctuations. The leverage ratio stood at 24.1% as of June 30, 2026, with total debt of $418.2 million at a weighted average interest rate of approximately 5.84%.

Looking ahead, Chatham Lodging Trust anticipates continued revenue growth driven by its recent acquisitions and improving market conditions. The company plans to invest approximately $13.1 million in renovations and capital improvements for its existing hotels throughout the remainder of 2026. Management remains focused on maintaining a strong balance sheet while exploring further acquisition opportunities to enhance shareholder value.