Chatham Lodging Announces Third 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 third quarter ended September 30, 2025.

Third Quarter 2025 Key Items

The following chart summarizes the consolidated financial results for the three and nine months ended September 30, 2025, and 2024, based on all properties owned during those periods, except for RevPAR, which is based on the 34 comparable hotels ($ in millions, except margin percentages and per share data):

Three Months Ended

Nine Months Ended

September 30,

2025

2024

2025

2024

Net income (loss) to common shareholders

1.5

2.3

4.5

(0.1

)

Diluted net income (loss) per common share

0.03

0.05

0.09

0.00

RevPAR

151

155

145

GOP Margin

Hotel EBITDA Margin

Adjusted EBITDA

26.2

29.6

72.6

79.8

AFFO

16.4

17.6

42.3

45.5

AFFO per diluted share

0.32

0.35

0.82

0.89

Dividends declared per common share

0.09

0.07

0.27

0.21

“Despite weaker than expected RevPAR, we were able to deliver adjusted FFO per share towards the upper end of our guidance range as our operating margins benefitted from labor efficiencies and lower-than-expected property taxes,” commented Jeffrey H. Fisher, Chatham's president and chief executive officer.

Fisher highlighted, “From a corporate perspective, we were excited to complete the refinancing and upsizing of our now $500 million credit facility, which further strengthens our balance sheet and provides significant financial flexibility to pull a variety of levers to enhance shareholder value. On that note, we are actively repurchasing our common shares under our $25 million share repurchase plan. Since announcing the plan, we have repurchased approximately 1 percent of outstanding shares at an average price of $6.85 per share.”

Hotel RevPAR Performance

The chart below summarizes key hotel financial statistics for the 34 comparable hotels owned as of September 30, 2025, compared to the 2024 third quarter:

Q3 2025

RevPAR

Q3 2024

RevPAR

Occupancy

ADR

192

195

RevPAR

151

155

The chart below summarizes RevPAR statistics by month for the company's 34 comparable hotels:

July

August

September

October

Occupancy

ADR

196

185

194

199

RevPAR

156

144

154

160

RevPAR – prior year

160

148

158

165

% Change in RevPAR vs. prior year

)

Dennis Craven, Chatham's chief operating officer, stated, “Our third quarter saw continued strength in our leisure markets that was offset by lower corporate demand at our two Sunnyvale hotels, weak convention calendars in San Diego, Austin and Dallas with the latter two due to the closure of the convention centers for renovation and expansion and cuts in government travel that occurred in advance of the official shutdown impacting the Washington, D.C. area.”

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

Q3 2025

RevPAR

Q3 2024

RevPAR

Change vs.

Q3 2024

34 - Hotel Portfolio

151

155

)

Silicon Valley

142

148

)

Los Angeles

169

175

)

Coastal Northeast

268

264

Washington, D.C.

143

153

)

Greater New York

197

182

San Diego

194

216

(10

)

Dallas

)

Craven remarked, “In Los Angeles, RevPAR growth at our Anaheim Residence Inn was offset by declines at our Marina Del Rey and Woodland Hills hotels. The entire Los Angeles market was weak in the quarter with market-wide RevPAR down 8 percent, so we significantly outperformed the market. The impact from the government shutdown adversely impacted third quarter RevPAR by approximately 40 basis points and October RevPAR by 170 basis points. Excluding our D.C. hotels, October RevPAR was only down 1%.”

Craven continued, “On a positive note, our Coastal Northeast hotels grew RevPAR by 2 percent. Our Portsmouth hotel experienced a 4 percent gain in the quarter, benefiting from increased demand after a great renovation, and RevPAR at our Hampton Inn Portland set an all-time quarterly RevPAR high of $354. Lastly, our Greater New York market produced the best growth of our top markets at 8 percent as our Holtsville Residence Inn delivered growth of 28 percent on the heels of the Ryder Cup on Long Island.”

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

Q3 2025

RevPAR

Q3 2024

RevPAR

Change vs.

Q3 2024

Residence Inn (16)

158

163

)

Hilton Garden Inn (3)

206

204

Home2 Suites (2)

119

122

)

Courtyard (3)

Hampton Inn (2)

280

278

Hyatt Place (2)

137

153

(10

)

Homewood (3)

119

127

)

Hotel Operations Performance

The chart below summarizes key hotel operating performance measures for the three months ended September 30, 2025, and 2024. RevPAR is based on the 34 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):

Q3 2025

Q3 2024

RevPAR

151

155

Gross operating profit

Hotel EBITDA

GOP margin

Hotel EBITDA margin

Craven concluded, “Excluding sold hotels, hotel EBITDA was down only $1 million versus last year as we were able to minimize our increase in labor and benefit costs to a mere 2 percent on a cost per occupied room basis.”

Corporate Update

The chart below summarizes key financial performance measures for the three months ended September 30, 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.

Q3 2025

Q3 2024

RevPAR

151

155

Hotel EBITDA

Corporate EBITDA

Debt Service & Preferred

)

(10

)

Cash flow before CapEx

Hotel Investments

During the third quarter of 2025, the company incurred capital expenditures of approximately $4 million.

Chatham’s 2025 capital expenditure budget is approximately $26 million, which includes renovations at three hotels expected to cost approximately $16 million. The renovation of the Hilton Garden Inn Portsmouth, N.H., is complete, and the renovations of the Residence Inn Austin, Texas, and the Residence Inn Mountain View, Calif., commence in the fourth quarter.

Share Buy-Back Plan

During the three months ended September 30, 2025, the company repurchased 255,213 common shares at a weighted-average price per share of $7.18 for an aggregate purchase price, including commissions, of approximately $1.8 million. During the nine months ended September 30, 2025, the company repurchased 275,693 common shares at a weighted-average price per share of $7.17 for an aggregate purchase price, including commissions, of approximately $2.0 million.

Including shares repurchased after quarter-end, year-to-date, the company repurchased 505,652 shares at a weighted-average price per share of $6.85 for an aggregate purchase price, including commissions, of approximately $3.5 million.

Capital Markets & Capital Structure

During the third quarter, the company successfully entered into a new credit agreement that (i) increases total capacity under a senior unsecured revolving loan from $260 million to $300 million and (ii) increases total capacity under its senior unsecured term loan from $140 million to $200 million. The newly enhanced $500 million credit facility can be increased up to $650 million through an accordion feature.

The $500 million credit facility matures in September 2029. The facility also includes options to extend the maturity by 12 months, subject to customary conditions. The new facility bears interest pursuant to a leveraged based pricing grid over the applicable adjusted term SOFR ranging from 1.5 to 2.25 percent for the revolving loan and 1.45 to 2.2 percent for the term loan.

As of September 30, 2025, the company had net debt of $330 million (total consolidated debt less unrestricted cash), down from $389 million as of December 31, 2024. Total debt outstanding as of September 30, 2025, was $343 million at an average interest rate of 6.3 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 5.6 percent and nothing outstanding on the company's $300 million revolving credit facility which carries a current interest rate of 5.7 percent.

Based on the ratio of the company’s net debt to hotel investments at cost, Chatham’s leverage ratio was approximately 21 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 October 15, 2025, to shareholders of record as of September 30, 2025.

Guidance

The company's guidance reflects the following assumptions:

Q4 2025

2025

RevPAR

$128 - $130

$140 - $141

RevPAR growth

(3.5)% to (2.5)%

(0.7)% to (0.3)%

Total hotel revenue

$66M - $67M

$293M - $294M

Net income (loss) to common shares

$(7.8)M - $(6.2)M

$(3.0)M - $(1.4)M

Net income (loss) per diluted common share

$(0.15) - $(0.12)

$(0.06) - $(0.03)

Adjusted EBITDA

$16.7M - $18.3M

$89.2M - $90.8M

Adjusted FFO

$7.1M - $8.6M

$49.2M - $50.8M

Adjusted FFO per diluted share

$0.14 - $0.17

$0.96 - $0.99

Hotel EBITDA margins

29% - 31%

34%

Corporate cash administrative expenses

$2.5M

$10.5M

Corporate non-cash administrative expenses

$1.5M

$6.2M

Interest income

—M

$0.2M

Interest expense (excluding fee amortization)

$5.6M

$24.1M

Non-cash amortization of deferred fees

$0.6M

$1.7M

Weighted average shares/units outstanding

51.1M

51.3M

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 third quarter 2025 conference call later today at 10:00 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 November 12, 2025, at 11:59 p.m. Eastern Time, by dialing 1-844-512-2921 or 1-412-317-6671, access ID 1147253. 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 upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns 34 hotels totaling 5,166 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, (4) EBITDAre, (5) Adjusted EBITDA, (6) Adjusted Hotel EBITDA, (7) Hotel EBITDA, (8) Hotel EBITDA Margin, (9) Corporate EBITDA and (10) Cash flow before CapEx and common dividends. 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

Chatham 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. Chatham 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. Chatham 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.

Chatham 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. Chatham 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

Chatham 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. Chatham believes EBITDA is useful to investors in evaluating and facilitating comparisons of its operating performance because it helps investors compare Chatham'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, Chatham uses EBITDA as one measure in determining the value of hotel acquisitions and dispositions. Chatham 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 performance between periods and between REITs.

Chatham 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. Chatham 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. Chatham presents Adjusted Hotel EBITDA because Chatham believes it is useful to investors in comparing its hotel operating performance between periods and comparing its Adjusted Hotel EBITDA to those of our peer companies. Adjusted Hotel EBITDA represents the results of operations for its wholly owned hotels only.

Although Chatham presents FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA and Adjusted Hotel EBITDA because it believes they are useful to investors in comparing Chatham'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 Chatham’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. Chatham 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. Chatham’s consolidated financial statements and the notes to those statements included elsewhere are prepared in accordance with GAAP. Chatham’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 Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements generally are characterized by the use of the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may” or similar expressions. 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. 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 could cause our actual results to differ materially from expected results 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 our hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of our indebtedness and its ability to meet covenants in its debt agreements; relationships with property managers; our ability to maintain its properties in a first-class manner, including meeting capital expenditure requirements; our 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; our ability to complete acquisitions and dispositions; and our ability to continue to satisfy complex rules in order for us to remain a REIT for federal income tax purposes; and 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 our Annual Report on Form 10-K for the year ended December 31, 2023, as updated by our subsequent filings with the SEC under the Exchange Act.

CHATHAM LODGING TRUST

Consolidated Balance Sheets

(In thousands, except share and per share data)

September 30,

December 31,

2025

2024

(unaudited)

Assets:

Investment in hotel properties, net

1,127,044

1,197,518

Cash and cash equivalents

13,226

20,195

Restricted cash

8,144

9,649

Right of use asset, net

17,076

17,547

Hotel receivables (net of allowance for doubtful accounts of $281 and $300, respectively)

3,914

2,921

Deferred costs, net

6,368

4,038

Prepaid expenses and other assets

6,768

2,813

Total assets

1,182,540

1,254,681

Liabilities and Equity:

Mortgage debt, net

141,419

157,211

Revolving credit facility

—

110,000

Unsecured term loan, net

197,427

139,638

Accounts payable and accrued expenses (including $617 and $490 due to related parties, respectively)

31,278

29,621

Lease liability

20,211

20,634

Distributions payable

6,722

5,580

Total liabilities

397,057

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 September 30, 2025 and December 31, 2024, respectively

Common shares, $0.01 par value, 500,000,000 shares authorized; 48,744,901 and 48,912,293 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively

487

489

Additional paid-in capital

1,046,762

1,046,812

Accumulated deficit

(297,857

)

(289,130

)

Total shareholders’ equity

749,440

758,219

Noncontrolling Interests:

Noncontrolling interest in Operating Partnership

36,043

33,778

Total equity

785,483

791,997

Total liabilities and equity

1,182,540

1,254,681

CHATHAM LODGING TRUST

Consolidated Statements of Operations

(In thousands, except share and per share data)

(unaudited)

For the three months ended

For the nine months ended

September 30,

2025

2024

2025

2024

Revenue:

Room

71,923

80,236

207,737

221,762

Food and beverage

1,561

1,832

5,083

5,806

Other

4,649

4,826

13,715

13,695

Reimbursable costs from related parties

276

283

802

836

Total revenue

78,409

87,177

227,337

242,099

Expenses:

Hotel operating expenses:

Room

15,469

17,011

45,255

49,110

Food and beverage

1,368

1,592

4,192

4,683

Telephone

292

343

884

991

Other hotel operating

1,171

1,188

3,353

3,031

General and administrative

6,667

7,506

20,703

21,903

Franchise and marketing fees

6,349

6,990

18,215

19,415

Advertising and promotions

1,923

1,677

5,185

4,604

Utilities

3,597

3,946

9,561

10,061

Repairs and maintenance

3,797

4,178

11,463

12,235

Management fees paid to related parties

2,600

2,959

7,575

8,118

Insurance

813

851

2,459

2,504

Total hotel operating expenses

44,046

48,241

128,845

136,655

Depreciation and amortization

14,707

15,287

45,133

45,455

Property taxes, ground rent and insurance

5,328

6,453

17,205

17,728

General and administrative

4,142

4,395

12,741

13,623

Other charges

—

Reimbursable costs from related parties

276

283

802

836

Total operating expenses

68,515

74,659

204,750

214,374

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

9,894

12,518

22,587

27,725

Gain (loss) on sale of hotel properties

(14

)

7,507

(154

)

Operating income

9,933

12,504

30,094

27,571

Interest and other income

192

1,627

Interest expense, including amortization of deferred fees

(6,243

)

(8,262

)

(19,508

)

(23,292

)

Loss on early extinguishment of debt

(174

)

—

(174

)

(17

)

Income before income tax expense

3,587

4,339

10,604

5,889

Income tax expense

—

Net income

3,587

4,339

10,604

5,889

Net income attributable to noncontrolling interests

(56

)

(88

)

(163

)

(15

)

Net income attributable to Chatham Lodging Trust

3,531

4,251

10,441

5,874

Preferred dividends

(1,987

)

(1,987

)

(5,962

)

(5,962

)

Net income (loss) attributable to common shareholders

1,544

2,264

4,479

(88

)

Income (loss) per common share - basic:

Net income (loss) attributable to common shareholders

0.03

0.05

0.09

—

Income (loss) per common share - diluted:

Net income (loss) attributable to common shareholders

0.03

0.05

0.09

—

Weighted average number of common shares outstanding:

Basic

48,910,697

48,904,179

48,956,588

48,898,947

Diluted

49,600,250

49,066,464

50,068,092

48,898,947

Distributions declared per common share:

0.09

0.07

0.27

0.21

CHATHAM LODGING TRUST

Reconciliation of Net Income to Adjusted FFO, EBITDA, EBITDAre and Adjusted EBITDA

(In thousands, except share and per share data)

For the three months ended

For the nine months ended

September 30,

2025

2024

2025

2024

Funds From Operations (“FFO”):

Net income

3,587

4,339

10,604

5,889

Preferred dividends

(1,987

)

(1,987

)

(5,962

)

(5,962

)

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

1,600

2,352

4,642

(73

)

(Gain) loss on sale of hotel properties

(39

)

(7,507

)

154

Depreciation of hotel properties owned

14,201

14,803

43,556

44,711

FFO attributable to common share and unit holders

15,762

17,169

40,691

44,792

Amortization of finance lease assets

457

430

1,428

580

Other charges

—

Loss on early extinguishment of debt

174

—

174

Adjusted FFO attributable to common share and unit holders

16,409

17,599

42,317

45,466

Weighted average number of common shares and units

Basic

50,631,283

50,813,521

50,688,964

50,737,772

Diluted

51,320,836

50,975,806

51,800,467

51,110,972

For the three months ended

For the nine months ended

September 30,

2025

2024

2025

2024

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

Net income

3,587

4,339

10,604

5,889

Interest expense, including amortization of deferred fees

6,243

8,262

19,508

23,292

Depreciation and amortization

14,707

15,287

45,133

45,455

EBITDA

24,537

27,888

75,245

74,636

(Gain) loss on sale of hotel properties

(39

)

(7,507

)

154

EBITDAre

24,498

27,902

67,738

74,790

Other charges

—

Loss on early extinguishment of debt

174

—

174

Share-based compensation

1,546

1,651

4,710

4,911

Adjusted EBITDA

26,234

29,553

72,646

79,795

CHATHAM LODGING TRUST

Reconciliation of Net Income to Adjusted Hotel EBITDA

(In thousands, except share and per share data)

For the three months ended

For the nine months ended

September 30,

2025

2024

2025

2024

Net income

3,587

4,339

10,604

5,889

Interest expense, including amortization of

Add:

deferred fees

6,243

8,262

19,508

23,292

Depreciation and amortization

14,707

15,287

45,133

45,455

Corporate general and administrative

4,142

4,395

12,741

13,623

Other charges

—

Loss on early extinguishment of debt

174

—

174

Loss on sale of hotel properties

—

154

Less:

Interest and other income

(71

)

(97

)

(192

)

(1,627

)

Gain on sale of hotel properties

(39

)

—

(7,507

)

—

Adjusted Hotel EBITDA

28,759

32,200

80,485

86,880

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 three months ended

For the year ended

December 31, 2025

Low-End

High-End

Low-End

High-End

Funds From Operations (“FFO”):

Net (loss) income

(5,758

)

(4,236

)

4,995

6,624

Preferred dividends

(2,000

)

(2,000

)

(8,000

)

(8,000

)

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

(7,758

)

(6,236

)

(3,005

)

(1,376

)

Gain on sale of hotel properties

—

(7,507

)

(7,507

)

Depreciation of hotel properties owned

14,385

57,615

FFO attributable to common share and unit holders

6,627

8,149

47,103

48,732

Amortization of finance lease assets

456

1,885

Other charges

—

197

Adjusted FFO attributable to common share and unit holders

7,083

8,605

49,185

50,814

Weighted average number of common shares and units

Diluted

51,000,000

51,300,000

Adjusted FFO per diluted share

0.14

0.17

0.96

0.99

For the three months ended

For the year ended

December 31, 2025

Low-End

High-End

Low-End

High-End

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

Net (loss) income

(5,758

)

(4,236

)

4,995

6,624

Interest expense, including amortization of deferred fees

6,100

25,600

Depreciation and amortization

14,891

59,700

EBITDA

15,233

16,755

90,295

91,924

Gain on sale of hotel properties

—

(7,507

)

(7,507

)

EBITDAre

15,233

16,755

82,788

84,417

Other charges

—

197

Share based compensation

1,500

6,200

Adjusted EBITDA

16,733

18,255

89,185

90,814

For the three months ended

For the year ended

December 31, 2025

Low-End

High-End

Low-End

High-End

Net (loss) income

(5,758

)

(4,236

)

4,995

6,624

Add:

Interest expense, including amortization of deferred fees

6,100

25,600

Depreciation and amortization

14,891

59,700

Corporate general and administrative

4,000

16,700

Other charges

—

197

Less:

Interest and other income

—

(200

)

(200

)

Gain on sale of hotel properties

—

(7,507

)

(7,507

)

Adjusted Hotel EBITDA

19,233

20,755

99,485

101,114

Total revenue

66,595

67,226

293,702

295,036

Reimbursable costs from related parties

(275

)

(275

)

(1,100

)

(1,100

)

Hotel revenue

66,320

66,951

292,602

293,936

Hotel EBITDA margin

29.0

31.0

34.0

34.4