Chatham Lodging Trust Stock Earnings Reports

Chatham Lodging Trust reported a strong Q1 2026 driven by outperformance across operations, an accretive $92M acquisition of six Hilton-branded hotels (589 rooms), aggressive share repurchases, margin improvement, and a raised outlook. Key operational highlights: comparable hotel EBITDA grew ~5% with hotel EBITDA margins up ~135–140 bps; GOP margin 40.2% and hotel EBITDA margin 31.8% for the quarter; labor and benefits per occupied room declined ~1%; CapEx of ~$6M in Q1 and a full-year CapEx plan of ~$27M. Silicon Valley was a standout market: excluding a Mountain View renovation, Silicon Valley RevPAR rose ~23% in Q1 (hotel EBITDA up ~35% year-over-year on those comparable Silicon Valley hotels). The six-hotel Hilton portfolio is immediately margin-accretive, diversified the footprint into manufacturing/distribution markets, and posted RevPAR +6% in Q1 and +7% in April. Capital allocation: company repurchased ~2.2M shares (~4% of common equity) at avg $7.04 through Q1 and plans to complete its $25M repurchase program in 2026 (free cash flow ~ $20M projected). Balance sheet: post-acquisition leverage per the credit agreement ~32.5% and revolver borrowing rate ~5.1%. 2026 guidance was raised: full-year RevPAR growth expected 0%–2%; adjusted EBITDA $95.3M–$99.6M; adjusted FFO per share $1.21–$1.29 (guidance includes the March acquisition but excludes future buybacks/acquisitions). Management remains conservative on macro/Geopolitical risk (Middle East) and expects to continue opportunistic asset recycling, development (Portland, Maine), and share repurchases while monitoring convention/calendar headwinds in select markets.