Chatham Lodging Trust Q3 FFO Guidance: $0.29-$0.33 per share Amid Share Buybacks and Asset Sales

Chatham Lodging Trust targets Q3 adjusted FFO per share of $0.29-$0.33. The company has completed the sale of five hotels with an average age of 25 years, generating $83 million in proceeds. Chatham Lodging Trust is advancing its share buybacks and asset sales strategy.

Chatham Lodging Trust (NYSE: CLDT), a lodging real estate investment trust (REIT), has released its second-quarter 2025 results, showcasing a mixed performance in the face of market challenges. The company reported a decline in RevPAR of less than 1% to $155, while occupancy remained strong at 82%. The company's average daily rate (ADR) held steady at $191. Despite these changes, the company's gross operating profit (GOP) margins increased by 30 basis points to 46%, and Hotel EBITDA margins declined by 40 basis points to 39%.

Chatham Lodging Trust reported net income applicable to common shareholders of $3 million for the second quarter, down from $5 million in the second quarter of 2024. The net income per diluted common share was $0.07, compared to $0.10 in the same period last year. The company's adjusted FFO (Funds from Operations) per diluted share was $0.36, down from $0.39 in the second quarter of 2024.

The company's asset recycling strategy continued with the sale of the last of five hotels in the second quarter, generating $23 million. The five hotels sold were an average of 25 years old and included properties in Bloomington, Maitland, Brentwood, Houston, and other locations. The total sales proceeds from these five hotels amounted to $83 million.

Chatham Lodging Trust's president and CEO, Jeffrey H. Fisher, highlighted the company's performance, stating, "Despite the RevPAR decline, we were able to hold margins essentially flat compared to last year and delivered adjusted FFO per share at the top of our guidance range." The company's chief operating officer, Dennis Craven, noted that the company's RevPAR performance in the second quarter was better than expected, with the Silicon Valley market showing strong growth of 3%.

Looking ahead, Chatham Lodging Trust has set a target for Q3 adjusted FFO per share of $0.29-$0.33. The company is also advancing its share buybacks and asset sales strategy, aiming to add shareholder value through acquisitions, developments, and share repurchases. The company expects improving business travel demand in August and September, which should enable it to continue outperforming industry peers.

References:
[1] https://www.morningstar.com/news/business-wire/20250806593227/chatham-lodging-announces-second-quarter-2025-results