Chatham Lodging Trust reported its fourth‑quarter 2025 results on February 25 2026, posting net income of $3 million and diluted earnings per share of $0.05. Revenue reached $67.74 million, slightly above the consensus estimate of a loss of $0.12 per share, and RevPAR fell to $131 from $133 year‑over‑year. Gross operating profit margin contracted to 40.2% from 40.5% in the prior year, a 30‑basis‑point decline that reflects modest cost‑control gains offset by a small RevPAR drop.
The earnings beat analysts’ expectations because the company maintained strong cost discipline while navigating a modest decline in RevPAR. Strict expense management kept the GOP margin close to the prior year, and the extended‑stay model helped preserve profitability even as demand in key markets such as Silicon Valley and Washington, D.C. experienced headwinds. The result was a $0.05 EPS that exceeded the consensus estimate of a $0.12 loss, a beat of $0.17 per share or 141% relative to expectations.
Revenue was marginally above the $67.22 million estimate, driven by a rebound in core hotel operations after temporary disruptions from government shutdowns and convention center closures. The slight miss relative to the higher $68.56 million estimate underscores lingering demand softness, but the company’s ability to keep revenue near forecast demonstrates resilience in a volatile environment.
Management guided for 2026 with RevPAR projected between $142 and $145, total hotel revenue expected to be $284–$290 million, and adjusted FFO per diluted share of $1.04–$1.14. The company also highlighted a $25 million share‑repurchase program, a $70 million reduction in net debt, and a 28% increase in the common dividend. These actions signal confidence in cash‑flow generation and a continued focus on balance‑sheet strength.
CFO Jeremy Wegner noted that GOP margins fell only 30 basis points from Q4 2024, thanks to expense control and stabilized inflationary pressures. The company also sold four older properties for $71 million to further deleverage. Investors noted the earnings surprise and margin resilience, but also weighed the modest revenue miss and the cautious guidance as they assess the company’s near‑term outlook.
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