Chatham Lodging Trust (reit) Stock Earnings Reports

Chatham Lodging Trust reported a strong Q1 2026 driven by better-than-expected operating performance, an accretive $92M acquisition of six Hilton-branded hotels (589 rooms), continued share repurchases, and disciplined expense control. Management raised full-year guidance by ~15% since February and increased the common dividend (11% in Q1, +28% in 2025) while maintaining a conservative payout (common dividend = 32% of FFO on updated guidance). Q1 highlights: RevPAR and hotel EBITDA margins materially outperformed expectations (comparable hotel EBITDA +5%, margins +135 bps), Silicon Valley hotels led growth (ex-Mountain View: RevPAR +23% in Q1, ADR strength), and the newly acquired portfolio showed immediate RevPAR upside (Q1 +6%, April +7%). Cost controls were notable: labor & benefits per occupied room fell ~1% and GOP/hotel EBITDA margins improved (~60–140 bps). Balance sheet/allocations: acquisition funded on the revolver (cost ~5.1%); pro forma leverage per credit agreement ~32.5%; management intends to finish its $25M repurchase plan in 2026 (already repurchased ~2.2M shares at $7.04 avg through Q1 and an additional ~200k shares in April) and will continue opportunistic buybacks and selective asset recycling. Forward outlook: 2026 RevPAR guidance 0–2%, adjusted EBITDA $95.3M–$99.6M, adjusted FFO/sh $1.21–$1.29 (guidance includes acquisition contribution from March onward). Management is constructive on tech-driven demand (Silicon Valley) and believes the portfolio is well positioned for further upside, though they remain conservative on macro/geopolitical risks and large event impacts (e.g., World Cup). CapEx: Q1 spend ~$6M, 2026 budget ~ $27M; most recently acquired hotels have limited near-term CapEx needs.