Chatham Lodging Trust Announces Strong Second‑Quarter Results and Updated FY26 Outlook

Chatham Lodging Trust (NYSE: CLDT) reported a robust second‑quarter 2026 performance, surpassing expectations across key metrics and lifting its full‑year guidance. The REIT’s focus on upscale, extended‑stay properties and premium‑branded select‑service hotels appears to be translating into higher operating leverage and improved profitability.

Revenue and Occupancy Metrics

  • Revenue Per Available Room (RevPAR) rose over 3 % to $158, an all‑time second‑quarter high for the 39 comparable hotels.
  • Occupancy fell modestly by 50 basis points to 81 %, a common trend in a tightening market.
  • The average daily rate (ADR) increased 390 basis points to $195.

The company highlighted regional variations:

  • The four Silicon Valley hotels recorded a 7 % RevPAR increase.
  • The recently acquired six‑hotel portfolio saw a 9 % jump to $135, exceeding underwriting expectations.
  • For July, overall RevPAR accelerated 10 % to $169, marking the highest July figure ever.

Earnings and Margins

  • Net income applicable to common shareholders reached $6 million, doubling the $3 million reported in the 2025 second quarter.
  • Net income per diluted share rose from $0.07 to $0.13.
  • Gross operating profit (GOP) margins improved by 50 basis points to 47 %.
  • EBITDA margins increased by 220 basis points, reaching 41 %.

These margin expansions underpin the REIT’s ability to generate stronger cash flows and support AFFO growth.

Adjusted Funds From Operations (AFFO)

Chatham Lodging Trust announced that adjusted AFFO per share surged 22 % in the second quarter, reflecting disciplined capital expenditures and effective property management. The company now projects an adjusted FFO per share for FY26 of $1.28 – $1.34.

RevPAR Growth Outlook

Management forecasts 1.5 %–3 % RevPAR growth for the full year, a continuation of the upward trajectory seen in July and the broader market’s recovery. The guidance reflects confidence in the REIT’s asset mix and strategic acquisitions.

Market Context

  • The trust’s market capitalization stands at $643 million, with a recent close of $13.15 per share, approaching the 52‑week high of $13.88.
  • Despite the low of $6.08 in late 2025, the latest results suggest a rebound in investor sentiment and operational performance.

Conclusion

Chatham Lodging Trust’s second‑quarter results demonstrate resilience amid a competitive hospitality environment. Strong RevPAR performance, margin expansion, and a raised FY26 outlook position the REIT as a compelling investment for investors seeking exposure to upscale, extended‑stay hotels. The company’s disciplined capital strategy and focus on premium properties appear to be delivering tangible financial benefits, setting the stage for continued growth in the coming months.