Chatham Lodging Trust recently released its latest Form 10-Q. The company is a self-advised real estate investment trust formed in October 2009 and based in West Palm Beach, Maryland-incorporated for legal purposes. Its portfolio is concentrated in upscale extended-stay and premium-branded select-service hotels, with operations structured through taxable REIT subsidiaries and independent hotel managers.
In Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, Chatham said its leverage ratio was 24.1% at June 30, 2026, measured as net debt to hotel investments at cost. Total debt stood at $418.2 million, with a weighted-average interest rate of about 5.84%. The company said its investment strategy remains focused on geographically diverse hotels near strong demand generators, and that future acquisitions may be funded through common or preferred equity, operating partnership interests, revolver borrowings, debt, cash, or asset sale proceeds.
For the quarter ended June 30, 2026, industry RevPAR rose 5.7% year over year, according to Smith Travel Research, with monthly gains of 4.4% in April, 4.0% in May and 8.4% in June. Chatham’s same-property RevPAR increased 3.3% to $157.97, driven by ADR growth of 3.9% to $195.34, while occupancy slipped 0.5 percentage point to 80.9%. On an actual basis, same-property RevPAR also rose 2.0% to $157.97 versus the prior-year quarter.
Total revenue for the quarter increased 9.4% to $87.8 million from $80.3 million. Room revenue rose 9.9% to $80.6 million and accounted for 91.8% of total revenue, while food and beverage revenue declined 13.9% to $1.6 million. Other operating revenue increased 10.9% to $5.3 million, and reimbursable costs from related parties were essentially flat at $0.3 million.
The revenue increase reflected the 3.3% same-property RevPAR gain and the March 3, 2026 acquisition of six hotels in Paducah, Kentucky; Joplin, Missouri; and Effingham, Illinois, which contributed $7.3 million of revenue in the quarter. That was partly offset by the absence of revenue from two hotels sold earlier, one in Houston on April 22, 2025 and one in Billerica, Massachusetts on December 23, 2025; those properties had contributed $2.1 million in the comparable 2025 period.
Hotel operating expenses increased 8.2% to $46.5 million from $43.0 million. Room expenses rose 11.2% to $16.6 million, franchise and marketing fees increased 8.0% to $7.0 million, advertising and promotions climbed 14.9% to $1.9 million, utilities rose 10.1% to $3.1 million, and management fees increased 10.2% to $3.0 million. The company said the higher expense base was driven mainly by the six acquired hotels and inflation, partly offset by the two sold properties.
Depreciation and amortization rose to $15.7 million from $15.4 million. Property taxes, ground rent and insurance fell to $5.3 million from $6.1 million, helped by the hotel sales and successful property tax appeals at multiple properties. General and administrative expenses were $7.2 million, up from $7.1 million, before share-based compensation amortization. As a result of these announcements, the company's shares have moved 2.28% on the market, and are now trading at a price of $13.45. If you want to know more, read the company's complete 10-Q report here.
