Chatham Lodging Posts Strong Q2 Results, Yet Stock Slips

Chatham Lodging Trust (CLDT) reported Q2 2026 earnings on August 4, 2026, with revenue rising 9.4% year-over-year to $87.80 million and net income surging 53.8% to $8.46 million. Management raised full-year guidance, citing strong RevPAR growth and margin expansion, but the stock underperformed in the post-earnings period.

Revenue

Chatham Lodging Trust’s total revenue for Q2 2026 reached $87.80 million, reflecting a 9.4% year-over-year increase. Room revenue remained the largest contributor at $80.64 million, while food and beverage generated $1.60 million. Additional revenue streams included $5.31 million from other services and $250,000 in reimbursable costs from related parties, underscoring the company’s diversified income sources.

Earnings/Net Income

The company’s earnings per share (EPS) surged 85.7% to $0.13 in Q2 2026, driven by a 53.8% year-over-year rise in net income to $8.46 million. The robust performance highlights the company’s operational efficiency and strategic cost management, with the EPS growth underscoring strong profitability.

Price Action

Chatham Lodging Trust’s stock declined 1.25% during the latest trading day and 1.39% over the prior week, though it gained 3.37% month-to-date. The post-earnings period, however, saw a -1.8% drop over 30 days, contrasting with the company’s strong financial results.

Post Earnings Price Action Review

Despite reporting a revenue beat and raising guidance, Chatham Lodging Trust’s stock underperformed in the 30 days following the Q2 2026 earnings release. The company’s $87.8 million in revenue (up 9.4% YoY) and margin expansion were positive, but broader macroeconomic factors—particularly persistent high interest rates—weighed on the REIT sector. The stock fell from $13.39 to $13.15 between July 20 and September 2, 2026, underperforming a buy-and-hold strategy (-2.5%) over the same period. Analysts attributed the weakness to sector-wide rate sensitivity and profit-taking after a strong first-half rally, illustrating how macro trends can overshadow strong earnings in REITs.

CEO Commentary

Jeffrey H. Fisher, president and CEO, highlighted a “great second quarter” with 22% higher AFFO per share and $158 RevPAR. He emphasized capital returns through share repurchases and optimism about the third quarter, where July RevPAR surged 10%.

Guidance

For 2026, the company forecasts RevPAR of $142–$144 (1.5%–3.0% growth), total hotel revenue of $312–$316 million, Adjusted EBITDA of $99.2–$102.3 million, and Adjusted FFO of $63.7–$66.8 million ($1.28–$1.34 per share). Hotel EBITDA margins are targeted at 35.5%–36.0%.

Additional News

Chatham Lodging Trust’s Q2 results included a $0.48 FFO per share beat and $87.8 million in revenue, surpassing estimates. Management raised 2026 guidance, noting 3.3% RevPAR growth and 22% AFFO per share increase. The company also announced share repurchases as part of its capital return strategy. In mid-July, RevPAR for 39 comparable hotels hit an all-time July high of $169, reflecting strong demand.