Chatham Lodging Announces Fourth Quarter 2025 Results

WEST PALM BEACH, Fla.--( BUSINESS WIRE)--Chatham Lodging Trust (NYSE: CLDT), a lodging real estate investment trust (REIT) that invests in upscale, extended-stay hotels and premium-branded, select-service hotels, today announced results for the fourth quarter ended December 31, 2025.

Fourth Quarter 2025 Key Items

The following chart summarizes the consolidated financial results for the three- and twelve-months ended December 31, 2025 and 2024, based on all properties owned during those periods, except for RevPAR, which is based on the 33 comparable hotels ($ in millions, except margin percentages and per share data):

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

Net income (loss) to common shareholders

$2.6

($3.7

)

$7.1

($3.8

)

Diluted net income (loss) per common share

$0.05

($0.08

)

$0.14

($0.08

)

RevPAR

$131

$133

$143

$142

GOP Margin

Hotel EBITDA Margin

Adjusted EBITDA

$20.2

$21.1

$92.8

$100.9

AFFO

$10.4

$10.0

$52.7

$55.5

AFFO per diluted share

$0.21

$0.20

$1.02

$1.08

Dividends declared per common share

$0.09

$0.07

$0.36

$0.28

2025 Highlights

Jeffrey H. Fisher, Chatham’s president and chief executive officer highlighted, “We accomplished much during 2025. Operationally, we produced solid results despite very volatile conditions, and our intense asset management enabled us to hold margins essentially flat year-over-year. In fact, for the first time since the pandemic, we generated the highest operating margins in the industry, reclaiming our spot atop the rankings, a position we held from essentially 2010 to 2019. Strategically, we sold four of our older hotels at a very attractive cap rate, using a portion of the proceeds to lower debt and to acquire shares under our newly implemented repurchase plan. In fact, since announcing the plan, we have repurchased approximately 1.8 million shares at an average price of $6.87 per share for total repurchase of almost $13 million, or just over half of our $25 million repurchase plan. Since inception, we have repurchased approximately 4 percent of outstanding shares at an approximate 9.3 percent capitalization rate based on our 2026 guidance.”

Chatham's 2025 highlights include:

“2025 was a successful year notwithstanding our and our peer’s shareholder returns. Our 2026 guidance reflects a conservative short-term outlook given recent industry volatility, but we are quite positive on the industry long-term. GDP growth is projected to be strong in 2026, and if even a portion of the announced capital investments come to fruition for reshoring and existing corporate expansions, the outlook past 2026 looks equally strong. Existing hotel owners stand to outperform as demand growth is expected to outpace muted supply growth expectations. We have flexibility and significant capacity to make acquisitions, repurchase shares, grow FFO and increase distributable cash flow," Fisher emphasized.

Hotel RevPAR Performance

The chart below summarizes key hotel financial statistics for the 33 comparable hotels owned as of December 31, 2025, compared to the 2024 fourth quarter:

Q4 2025 RevPAR

Q4 2024 RevPAR

Occupancy

ADR

179

180

RevPAR

131

133

The chart below summarizes RevPAR statistics by month for the company’s 33 comparable hotels:

October

November

December

Occupancy

ADR

$199

$172

$161

RevPAR

$161

$123

$108

RevPAR – prior year

$164

$125

$110

% Change in RevPAR vs. prior year

Fisher continued, “Continuing a trend throughout the first three quarters of the year, fourth quarter demand was adversely impacted by government shutdowns as well as the decline in convention-related business in four of our markets where two of the markets have convention centers closed for renovation. RevPAR was down 11 percent at our three Washington D.C. hotels and down 11 percent across our convention-dependent markets of San Diego, San Antonio, Austin and Dallas. The impact from the shutdown and convention-driven business adversely impacted fourth quarter RevPAR by approximately 300 basis points.”

RevPAR performance for Chatham’s largest markets (markets that account for five percent of hotel EBITDA contribution over the last twelve months) is presented below:

% OF LTM

EBITDA

Q4 2025

RevPAR

Q4 2024

RevPAR

Change vs.

Q4 2024

33 - Hotel Portfolio

131

133

Silicon Valley

135

136

Los Angeles

155

154

Coastal Northeast

148

158

Greater New York

171

163

Washington, D.C.

122

137

(11

San Diego

150

179

(16

Dallas

Seattle

115

101

Dennis Craven, Chatham's chief operating officer, summarized performance in other key markets below:

Approximately 66 percent of Chatham’s hotel EBITDA over the last twelve months was generated from its extended-stay hotels. Chatham has the highest concentration of extended-stay rooms of any public lodging REIT at 59 percent. RevPAR performance for Chatham’s largest brands (brands that account for more than 5 percent of hotel EBITDA contribution over the last twelve months) is presented below (number of hotels in parentheses):

% of LTM

EBITDA

Q4 2025

RevPAR

Q4 2024

RevPAR

Change vs.

Q4 2024

Residence Inn (16)

142

145

Hilton Garden Inn (3)

129

135

Courtyard (3)

100

Home2 Suites (2)

135

126

Hampton Inn (2)

148

162

Hyatt Place (2)

109

107

Embassy Suites (1)

113

138

(18

Hotel Operations Performance

The chart below summarizes key hotel operating performance measures for the three months ended December 31, 2025, and 2024. RevPAR is based on the 33 comparable hotels, and all other data is based on all properties owned during that period. Gross operating profit is calculated as Hotel EBITDA plus property taxes, ground rent and insurance (in millions, except for RevPAR and margin percentages):

Q4 2025

Q4 2024

RevPAR

131

133

Gross operating profit

Hotel EBITDA

GOP margin

Hotel EBITDA margin

Craven concluded, “Excluding sold hotels, hotel EBITDA grew $1 million versus last year as we were able to minimize our increase in labor and benefit costs to less than 3 percent on a cost per occupied room basis, and we benefitted from a decline in property taxes of $0.8 million that aided margins by 100 basis points.”

Corporate Update

The chart below summarizes key financial performance measures for the three months ended December 31, 2025, and 2024. Corporate EBITDA is calculated as hotel EBITDA minus cash corporate general and administrative expenses and is before debt service and capital expenditures. Debt service includes interest expense and principal amortization on its secured debt, as well as dividends on its preferred shares of $2.0 million per quarter. Cash flow before CapEx is calculated as Corporate EBITDA less debt service. Amounts are in millions, except RevPAR.

Q4 2025

Q4 2024

RevPAR

131

133

Hotel EBITDA

Corporate EBITDA

Debt Service & Preferred

)

Cash flow before CapEx

Hotel Investments

During the fourth quarter of 2025, the company incurred capital expenditures of approximately $4 million. The company commenced renovations of the Residence Inn Austin, Texas, and the Residence Inn Mountain View, Calif., and these will finish in the 2026 first quarter. Chatham’s 2025 capital expenditure budget was approximately $26 million, and the company expects total expenditures to be approximately $25 million.

Chatham’s 2026 capital expenditure budget is approximately $26 million, which includes renovations at three hotels expected to cost approximately $17 million. The three hotels scheduled for renovation in 2026 are the Residence Inn San Diego Gaslamp, Homewood Suites Farmington, CT and Hyatt Place Pittsburgh, PA, and all renovations will commence in the fourth quarter.

Share Buy-Back Plan

During the three months ended December 31, 2025, the company repurchased 1.0 million common shares at a weighted-average price per share of $6.73 for an aggregate purchase price, including commissions, of approximately $7.0 million. During 2025, the company repurchased 1.3 million common shares at a weighted average price per share of $6.83 for an aggregate purchase price, including commissions, of approximately $9.0 million.

Including shares repurchased after quarter-end, since inception, the company has repurchased 1.8 million shares at a weighted-average price per share of $6.87 for an aggregate purchase price, including commissions, of approximately $12.6 million.

Capital Markets & Capital Structure

As of December 31, 2025, the company had net debt of $319 million (total consolidated debt less unrestricted cash), a decline of $70 million down from $389 million as of December 31, 2024. Total debt outstanding as of December 31, 2025, was $343 million at an average interest rate of 6.2 percent, comprised of $143 million of fixed-rate mortgage debt at an average interest rate of 7.2 percent, $200 million outstanding on its term loan at a rate of 5.5 percent and nothing outstanding on the company's $300 million revolving credit facility which carries a current interest rate of 5.5 percent. Based on the ratio of the company’s net debt to hotel investments at cost, Chatham’s leverage ratio was approximately 20 percent, down from 23 percent on December 31, 2024.

Dividend

During the quarter, the board of trustees declared its regular quarterly common and preferred dividends. The $0.09 common dividend, as well as the preferred share dividend of $0.41406 per share, were payable on January 15, 2026, to shareholders of record as of December 31, 2025.

The Board will continue to evaluate the common share dividend on a quarterly basis, and the company will announce its first quarter 2026 dividend next week.

Guidance

The company’s guidance reflects the following assumptions:

Renovations at the hotels mentioned in this release

Floating rate debt based on SOFR forward curve

$2.1 million impact on 2026 Hotel EBITDA from hotels sold in 2025

No additional acquisitions, dispositions, debt or equity issuance

Effective January 1, 2026, the Company will exclude non-cash share-based compensation from its calculation of Adjusted FFO to make its presentation of this measure consistent with the majority of other public lodging REITs.

2026

RevPAR

$142 - $145

RevPAR growth

-0.5% to 1.5%

Total hotel revenue

$284 - $290 M

Net income (loss) to common shares

$(13.0) - $(8.0) M

Net income (loss) per diluted share

$(0.27) - $(0.16)

Adjusted EBITDA

$84 - $89 M

Adjusted FFO

$53 - $58 M

Adjusted FFO per diluted share

$1.04 - $1.14

Hotel EBITDA margins

33.5% - 34.5%

Corporate cash administrative expenses

$11.1 M

Corporate non-cash administrative expenses

$6.1 M

Interest expense (excluding fee amortization)

$21.4 M

Non-cash amortization of deferred fees

$2.0 M

Weighted average shares/units outstanding

50.9 M

The company provides guidance but does not undertake to update it for any developments in its business. Achievement of the results is subject to the risks disclosed in the company’s filings with the Securities and Exchange Commission.

Earnings Call

The company will hold its fourth quarter 2025 conference call later today at 10:30 a.m. Eastern Time. Shareholders and other interested parties may listen to a simultaneous webcast of the conference call on the Internet by logging onto Chatham’s website, www.chathamlodgingtrust.com, or may participate in the conference call by dialing 1-800-717-1738 or 1-646-307-1865 and referencing Chatham Lodging Trust. A recording of the call will be available by telephone until March 4, 2026, at 11:59 p.m. Eastern Time, by dialing 1-844-512-2921 or 1-412-317-6671, access ID 1101688. A replay of the conference call will be posted on Chatham’s website.

About Chatham Lodging Trust

Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust (REIT) focused primarily on investing in premium-branded extended-stay and select-service hotels. The company owns 33 hotels totaling 5,021 rooms/suites in 15 states and the District of Columbia. Additional information about Chatham may be found at chathamlodgingtrust.com.

Non-GAAP Financial Measures

Included in this press release are certain “non-GAAP financial measures,” within the meaning of Securities and Exchange Commission (SEC) rules and regulations, that are different from measures calculated and presented in accordance with GAAP (generally accepted accounting principles). The company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its operating performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA, (5) EBITDAre (6) Adjusted EBITDA and (7) Adjusted Hotel EBITDA. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss as prescribed by GAAP as a measure of its operating performance.

FFO As Defined by NAREIT and Adjusted FFO

The company calculates FFO in accordance with standards established by the NAREIT, which defines FFO as net income or loss (calculated in accordance with GAAP), excluding gains or losses from sales of real estate, impairment write-downs, the cumulative effect of changes in accounting principles, plus depreciation and amortization (excluding amortization of deferred financing costs), and after adjustments for unconsolidated partnerships and joint ventures following the same approach. The company believes that the presentation of FFO provides useful information to investors regarding its operating performance because it measures its performance without regard to specified non-cash items such as real estate depreciation and amortization, gain or loss on sale of real estate assets and certain other items that the company believes are not indicative of the property level performance of its hotel properties. The company believes that these items reflect historical cost of its asset base and its acquisition and disposition activities and are less reflective of its ongoing operations, and that by adjusting to exclude the effects of these items, FFO is useful to investors in comparing its operating performance between periods and between REITs that also report using the NAREIT definition.

The company calculates Adjusted FFO by further adjusting FFO for certain additional items that are not addressed in NAREIT’s definition of FFO, including other charges, losses on the early extinguishment of debt and similar items related to its unconsolidated real estate entities that it believes do not represent costs related to hotel operations. The company believes that Adjusted FFO provides investors with another financial measure that may facilitate comparisons of operating performance between periods and between REITs that make similar adjustments to FFO.

EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA

The company calculates EBITDA for purposes of the credit facility debt as net income or loss excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; (3) depreciation and amortization; and (4) unconsolidated real estate entity items including interest, depreciation and amortization excluding gains and losses from sales of real estate. The company believes EBITDA is useful to investors in evaluating and facilitating comparisons of its operating performance because it helps investors compare the company’s operating performance between periods and between REITs by removing the impact of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from its operating results. In addition, the company uses EBITDA as one measure in determining the value of hotel acquisitions and dispositions.

The company calculates EBITDAre in accordance with NAREIT guidelines, which defines EBITDAre as net income or loss excluding interest expense, income tax expense, depreciation and amortization expense, gains or losses from sales of real estate, impairment, and adjustments for unconsolidated joint ventures. We believe that the presentation of EBITDAre provides useful information to investors regarding the Company's operating performance and can facilitate comparisons of operating performance between periods and between REITs.

The company calculates Adjusted EBITDA by further adjusting EBITDA for certain additional items, including other charges, losses on the early extinguishment of debt, amortization of non-cash share-based compensation and similar items related to its unconsolidated real estate entities, which it believes are not indicative of the performance of its underlying hotel properties entities. The company believes that Adjusted EBITDA provides investors with another financial measure that may facilitate comparisons of operating performance between periods and between REITs that report similar measures.

Adjusted Hotel EBITDA is defined as net income before interest, income taxes, depreciation and amortization, corporate general and administrative, impairment loss, loss on early extinguishment of debt, interest and other income and income or loss from unconsolidated real estate entities. The Company presents Adjusted Hotel EBITDA because the Company believes it is useful to investors in comparing its hotel operating performance between periods and comparing its Adjusted Hotel EBITDA margins to those of our peer companies. Adjusted Hotel EBITDA represents the results of operations for its wholly owned hotels only.

Although the company presents FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA because it believes they are useful to investors in comparing the company’s operating performance between periods and between REITs that report similar measures, these measures have limitations as analytical tools. Some of these limitations are:

In addition, FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA do not represent cash generated from operating activities as determined by GAAP and should not be considered as alternatives to net income or loss, cash flows from operations or any other operating performance measure prescribed by GAAP. FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA are not measures of the Company’s liquidity. Because of these limitations, FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP.

The Company compensates for these limitations by relying primarily on its GAAP results and using FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA only supplementally. The Company’s consolidated financial statements and the notes to those statements included elsewhere are prepared in accordance with GAAP. The company’s reconciliation of FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA to net income attributable to common shareholders, as determined under GAAP, is set forth below.

Forward-Looking Statement Safe Harbor

Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements include those with regard to the potential future impact of the COVID-19 pandemic, within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements include information about possible or assumed future results of the lodging industry and our business, financial condition, liquidity, results of operations, cash flow and plans and objectives. These statements generally are characterized by the use of the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may” or similar expressions. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, our actual results could differ materially from those set forth in the forward-looking statements. Important factors that we think could cause our actual results to differ materially from expected results are summarized below.

Other risks include, but are not limited to: national and local economic and business conditions, including the effect on travel of potential terrorist attacks, that will affect occupancy rates at the company’s hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of the company’s indebtedness and its ability to meet covenants in its debt agreements; relationships with property managers; the company’s ability to maintain its properties in a Fourth-class manner, including meeting capital expenditure requirements; the company’s ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; the company’s ability to complete acquisitions and dispositions; and the company’s ability to continue to satisfy complex rules in order for the company to remain a REIT for federal income tax purposes and other risks and uncertainties associated with the company’s business described in the company's filings with the SEC; inaccuracies of our accounting estimates and the uncertainty and economic impact of pandemics, epidemics or other public health emergencies of fear of such events, such as the recent COVID-19 pandemic. Given these uncertainties, undue reliance should not be placed on such statements. We undertake no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect future events or circumstances or to reflect the occurrence of unanticipated events. The forward-looking statements should also be read in light of the risk factors identified in the “Risk Factors” section in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as updated by the Company's subsequent filings with the SEC under the Exchange Act.

CHATHAM LODGING TRUST

Consolidated Balance Sheets

(In thousands, except share and per share data)

December 31,

2025

2024

Assets:

Investment in hotel properties, net

1,106,890

1,197,518

Cash and cash equivalents

24,435

20,195

Restricted cash

8,203

9,649

Right of use asset, net

16,912

17,547

Hotel receivables (net of allowance for doubtful accounts of $261 and $300, respectively)

2,831

2,921

Deferred costs, net

7,384

4,038

Prepaid expenses and other assets

3,726

2,813

Total assets

1,170,381

1,254,681

Liabilities and Equity:

Mortgage debt, net

141,475

157,211

Revolving credit facility

—

110,000

Unsecured term loan, net

197,438

139,638

Accounts payable and accrued expenses (including $234 and $490 due to related parties, respectively)

26,648

29,621

Lease liability

20,067

20,634

Distributions payable

6,704

5,580

Total liabilities

392,332

462,684

Commitments and contingencies

Equity:

Shareholders’ Equity:

Preferred shares, $0.01 par value, 100,000,000 shares authorized; 4,800,000 and 4,800,000 shares issued and outstanding at December 31, 2025 and 2024, respectively

Common shares, $0.01 par value, 500,000,000 shares authorized; 47,708,587 and 48,912,293 shares issued and outstanding at December 31, 2025 and 2024, respectively

477

488

Additional paid-in capital

1,039,804

1,047,176

Accumulated deficit

(299,527

)

(289,130

)

Total shareholders’ equity

740,802

758,219

Noncontrolling Interests:

Noncontrolling Interest in Operating Partnership

37,247

33,778

Total equity

778,049

791,997

Total liabilities and equity

1,170,381

1,254,681

CHATHAM LODGING TRUST

Consolidated Statements of Operations

(In thousands, except share and per share data)

For the three months ended

For the years ended

December 31,

2025

2024

2025

2024

Revenue:

Room

61,469

68,528

269,206

290,290

Food and beverage

1,810

1,931

6,894

7,737

Other

4,183

4,383

17,897

18,077

Reimbursable costs from related parties

275

269

1,078

1,105

Total revenue

67,737

75,111

295,075

317,209

Expenses:

Hotel operating expenses:

Room

14,497

16,201

59,752

65,311

Food and beverage

1,325

1,536

5,517

6,218

Telephone

288

369

1,172

1,360

Other hotel operating

1,134

1,095

4,487

4,127

General and administrative

6,307

6,923

27,010

28,826

Franchise and marketing fees

5,405

5,939

23,620

25,355

Advertising and promotions

1,619

1,625

6,804

6,229

Utilities

2,812

3,100

12,372

13,161

Repairs and maintenance

3,808

4,281

15,272

16,516

Management fees paid to related parties

2,320

2,615

9,895

10,733

Insurance

813

836

3,272

3,340

Total hotel operating expenses

40,328

44,520

169,173

181,176

Depreciation and amortization

14,616

15,286

59,749

60,741

Impairment loss

—

4,256

—

4,256

Property taxes, ground rent and insurance

4,747

5,982

21,952

23,709

General and administrative

3,848

4,766

16,589

18,388

Other charges

250

327

Reimbursable costs from related parties

275

269

1,078

1,105

Total operating expenses

63,817

75,329

268,568

289,702

Operating income (loss) before gain on sale of hotel properties

3,920

(218

)

26,507

27,507

Gain on sale of hotel properties

6,863

5,867

14,369

5,713

Operating income

10,783

5,649

40,876

33,220

Interest and other income

270

1,712

Interest expense, including amortization of deferred fees

(6,151

)

(7,588

)

(25,659

)

(30,880

)

Loss on early extinguishment of debt

—

(174

)

(17

)

Income (loss) before income tax expense

4,710

(1,854

)

15,313

4,035

Income tax expense

—

Net income (loss)

4,710

(1,854

)

15,313

4,035

Net (income) loss attributable to non-controlling interest

(97

)

146

(260

)

131

Net income (loss) attributable to Chatham Lodging Trust

4,613

(1,708

)

15,053

4,166

Preferred dividends

(1,987

)

(1,987

)

(7,950

)

(7,950

)

Net income (loss) attributable to common shareholders

2,626

(3,695

)

7,103

(3,784

)

Income (loss) per common share - basic:

Net income (loss) attributable to common shareholders

0.05

(0.08

)

0.14

(0.08

)

Income (loss) per common share - diluted:

Net income (loss) attributable to common shareholders

0.05

(0.08

)

0.14

(0.08

)

Weighted average number of common shares outstanding:

Basic

48,307,638

48,907,102

48,793,017

48,900,997

Diluted

49,107,204

48,907,102

49,992,069

48,900,997

Distributions per common share:

0.09

0.07

0.36

0.28

CHATHAM LODGING TRUST

FFO and EBITDA

(In thousands, except share and per share data)

For the three months ended

For the years ended

December 31,

2025

2024

2025

2024

Funds From Operations (“FFO”):

Net income (loss)

4,710

(1,854

)

15,313

4,035

Preferred dividends

(1,987

)

(1,987

)

(7,950

)

(7,950

)

Net income (loss) attributable to common shares and common units

2,723

(3,841

)

7,363

(3,915

)

Gain on sale of hotel properties

(6,863

)

(5,867

)

(14,369

)

(5,713

)

Depreciation of hotel properties owned

14,108

14,802

57,664

59,513

Impairment loss

—

4,256

—

4,256

FFO attributed to common share and unit holders

9,968

9,350

50,658

54,141

Amortization of finance lease assets

459

430

1,887

1,010

Other charges

250

327

Loss on early extinguishment of debt

—

174

Adjusted FFO attributed to common share and unit holders

10,430

10,030

52,746

55,495

Weighted average number of common shares and units

Basic

50,028,224

50,816,444

50,522,421

50,757,548

Diluted

50,827,790

51,134,893

51,721,473

51,172,183

For the three months ended

For the years ended

December 31,

2025

2024

2025

2024

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”):

Net income (loss)

4,710

(1,854

)

15,313

4,035

Interest expense, including amortization of deferred fees

6,151

7,588

25,659

30,880

Depreciation and amortization

14,616

15,286

59,749

60,741

EBITDA

25,477

21,020

100,721

95,656

Impairment loss

—

4,256

—

4,256

Gain on sale of hotel properties

(6,863

)

(5,867

)

(14,369

)

(5,713

)

EBITDAre

18,614

19,409

86,352

94,199

Other charges

250

327

Loss on early extinguishment of debt

—

174

Share based compensation

1,546

1,487

6,256

6,398

Adjusted EBITDA

20,163

21,146

92,809

100,941

CHATHAM LODGING TRUST

ADJUSTED HOTEL EBITDA

(In thousands, except share and per share data)

For the three months ended

For the years ended

December 31,

2025

2024

2025

2024

Net income (loss)

4,710

(1,854

)

15,313

4,035

Add: Interest expense, including amortization of deferred fees

6,151

7,588

25,659

30,880

Depreciation and amortization

14,616

15,286

59,749

60,741

Corporate general and administrative

3,848

4,766

16,589

18,388

Other charges

250

327

Impairment loss

—

4,256

—

4,256

Loss on early extinguishment of debt

—

174

Less: Interest and other income

(78

)

(85

)

(270

)

(1,712

)

Gain on sale of hotel properties

(6,863

)

(5,867

)

(14,369

)

(5,713

)

Adjusted Hotel EBITDA

22,387

24,340

102,872

111,219

Total revenue

67,737

75,111

295,075

317,209

Reimbursable costs from related parties

(275

)

(269

)

(1,078

)

(1,105

)

Hotel revenue

67,462

74,842

293,997

316,104

Hotel EBITDA margin

33.2

32.5

35.0

35.2

CHATHAM LODGING TRUST

Reconciliations of Guidance Net Income to FFO, Adjusted FFO,

EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA

(In thousands, except share and per share data)

For the year ended

December 31, 2026

Low-End

High-End

Funds From Operations (“FFO”):

Net loss

(4,969

)

(15

)

Preferred dividends

(8,000

)

(8,000

)

Net loss attributable to common shares and common units

(12,969

)

(8,015

)

Depreciation of hotel properties owned

57,794

FFO attributable to common share and unit holders

44,825

49,779

Share based compensation

6,100

Amortization of finance lease assets

1,885

Other Charges

Adjusted FFO attributable to common share and unit holders

52,821

57,775

Weighted average number of common shares and units

Diluted

50,880

Adjusted FFO per diluted share

1.04

1.14

For the year ended

December 31, 2026

Low-End

High-End

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”):

Net loss

(4,969

)

(15

)

Interest expense, including amortization of deferred fees

23,200

Depreciation and amortization

59,879

EBITDA

78,110

83,064

EBITDAre

78,110

83,064

Other Charges

Share based compensation

6,100

Adjusted EBITDA

84,221

89,175

For the year ended

December 31, 2026

Low-End

High-End

Net loss

(4,969

)

(15

)

Add: Interest expense, including amortization of deferred fees

23,200

Depreciation and amortization

59,879

Other Charges

Corporate general and administrative

17,200

Less: Interest and other income

(100

)

(100

)

Adjusted Hotel EBITDA

95,221

100,175

Total revenue

285,342

291,461

Reimbursable costs from related parties

(1,100

)

(1,100

)

Hotel revenue

284,242

290,361

Hotel EBITDA margin

33.5

34.5