Chatham Lodging Trust (CLDT) - Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. Chatham Lodging Trust is a self-advised Maryland REIT investing in upscale extended-stay and premium-branded select-service hotels. As of the reporting date, the Company owned 39 hotels with 5,610 rooms across 18 states and the District of Columbia. The portfolio is managed by Island Hospitality Management, LLC, a related party owned by the Company's CEO.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenue | $67.5 million | $68.6 million |
| Net Loss (GAAP) | $(4.5) million | $1.5 million (Income) |
| Net Loss Attributable to Common Shareholders | $(6.3) million | $(0.5) million |
| Adjusted Hotel EBITDA | $21.4 million | $20.8 million |
| FFO (Attributable to Common) | $7.6 million | $6.9 million |
| Adjusted FFO (Attributable to Common) | $10.1 million | $9.0 million |
| Cash from Operating Activities | $13.3 million | $4.2 million |
| Total Debt Outstanding | $428.2 million | $338.9 million |
| Cash and Cash Equivalents | $13.7 million | $24.4 million |
| Leverage Ratio (Net Debt/Investments) | 24.6% | N/A |
Material Changes vs. Prior Period
- Portfolio Activity: The Company acquired a portfolio of six hotels for $92.0 million on March 3, 2026. This contrasts with Q1 2025, which included the sale of four hotels (generating $7.1 million in gains).
- Revenue Decline: Total revenue decreased 1.6% to $67.5 million. The decline was primarily due to the absence of four sold hotels from the prior year, partially offset by a 1.0% increase in same-property RevPAR and revenue from the new acquisitions.
- Net Loss: The Company reported a net loss of $4.5 million compared to net income of $1.5 million in Q1 2025. This shift was driven by the lack of significant gains from hotel sales in the current period (only $0.1 million gain vs. $7.1 million in Q1 2025) and increased interest expense relative to the prior year's lower debt levels.
- Debt Expansion: Total debt increased by approximately $89 million to $428.2 million, primarily due to net borrowings of $85.0 million under the revolving credit facility to fund the hotel acquisitions.
- Share Repurchases: The Company repurchased 904,927 common shares for approximately $6.6 million during the quarter.
Guidance, Outlook, and Risks
- Industry Outlook: Management expects U.S. lodging industry RevPAR to continue increasing modestly for the remainder of 2026, citing a 3.8% industry increase in Q1 2026.
- Capital Expenditures: The Company expects to invest approximately $20.5 million on renovations and discretionary expenditures for existing hotels for the remainder of 2026.
- Liquidity: The Company maintains a $300 million revolving credit facility with $215 million of remaining availability as of March 31, 2026. Management believes existing cash and credit availability are sufficient to fund operations and distributions.
- Dividends: Common dividends were declared at $0.10 per share (up from $0.09 in Q1 2025). Preferred dividends remained at $0.41406 per share.
- Risks: Key risks include interest rate fluctuations (floating rate debt exposure), inflationary cost pressures, and the ability to access capital markets for future acquisitions. The Company has no debt principal maturities due in the next 12 months.
Investor Verification Checklist
- Verify the impact of the six new hotel acquisitions on same-property RevPAR growth in subsequent quarters.
- Monitor the utilization of the $215 million remaining credit facility availability and potential refinancing needs for the $285 million in floating-rate debt.
- Review the sustainability of the dividend increase to $0.10 per share given the GAAP net loss and reliance on non-GAAP metrics (FFO/Adjusted FFO) for distribution coverage.
- Assess the remaining $9.4 million authorization under the share repurchase program and its impact on share count.
- Confirm the status of the $20.5 million planned capital expenditures and their effect on future cash flows.