Chatham Lodging Trust announced an 11 % increase in its quarterly common dividend, raising the payment to $0.10 per share from $0.09 and setting the payment date for April 15, 2026.
On the same day, the REIT completed a $92 million acquisition of six Hilton‑branded extended‑stay hotels, adding 589 rooms in Joplin, MO; Effingham, IL; and Paducah, KY. The portfolio includes Homewood Suites, Hampton Inn & Suites, and Home2 Suites by Hilton, and the transaction was financed with available cash and borrowings on the company’s revolving credit facility.
The deal aligns with Chatham’s asset‑recycling strategy, replacing older, lower‑margin hotels with newer, higher‑margin properties. The new hotels average 10 years old, have a RevPAR of $116, and EBITDA margins of 42%, compared to the assets sold.
Financially, the acquisition is expected to be accretive, adding roughly $0.10 to adjusted FFO per year and supporting free‑cash‑flow growth. Net debt to EBITDA will rise by about 50 basis points, but the overall leverage remains manageable.
The dividend hike and acquisition follow a strong Q4 2025 earnings report released February 25, 2026, where Chatham posted a net income of $3 million ($0.05 per diluted share) versus a $4 million loss in Q4 2024, and revenue of $67.7 million. The results beat analyst expectations of a $0.12 loss and $67.22 million revenue, driven by disciplined cost control and a favorable mix of extended‑stay demand.
Management highlighted the strategic fit of the new properties and the success of the capital‑recycling initiative, expressing confidence in continued multi‑year growth driven by limited new supply, technology investments, and reshoring trends.
The acquisition and dividend increase reinforce Chatham’s focus on delivering consistent shareholder returns while expanding portfolio quality, positioning the REIT for sustained cash‑flow growth.
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