Chatham Lodging swings to profit as buybacks and asset sales offset soft RevPAR

Chatham Lodging Trust (NYSE:CLDT) revealed on Wednesday a net profit of $3 million for the fourth quarter of 2025, marking a successful turnaround from the $4 million loss recorded during the same period last year.

The West Palm Beach-based REIT posted earnings of $0.05 per diluted share, comfortably beating the analyst consensus estimate of a $0.12 loss.

The transition to profitability came despite a challenging top-line environment for the hotel industry.

Portfolio Revenue Per Available Room (RevPAR) declined 1.8% to $131, driven by a 0.9% decrease in the average daily rate (ADR) and a 70-basis-point slip in occupancy to 73%.

However, Chatham demonstrated significant operational resilience; despite the RevPAR pressure, hotel EBITDA margins actually expanded by 70 basis points to 33.2% through aggressive cost-control measures.

During the period under review, management leveraged the company's strong balance sheet to execute several corporate initiatives.

Chatham repurchased approximately 1 million shares for $7 million at an average price of $6.73—a move intended to capture value while the stock traded at a discount to its net asset value.

Additionally, the trust closed the sale of a 26-year-old hotel in Billerica, Massachusetts, for $17.4 million, representing a 4% capitalization rate when accounting for deferred renovations.

For the current quarter, Adjusted Funds From Operations (AFFO) rose 5% on a per-share basis to $0.21.

Looking ahead to 2026, Chatham issued a conservative outlook, projecting full-year RevPAR growth between -0.5% and 1.5%.