Chatham Lodging Trust delivered a robust second quarter, achieving record RevPAR and significant margin expansion, while management maintains a bullish outlook supported by strong July performance and ongoing share buybacks.
Chatham Lodging reported record quarterly RevPAR, strong profit growth, and ongoing buybacks, supporting a bullish near-term view.
Chatham Lodging Trust (CLDT) posted record second-quarter RevPAR of $158, driven by strong pricing power and operational efficiencies. Adjusted funds from operations rose 22% year-over-year, while the company continues to aggressively repurchase shares. Despite regional headwinds in San Diego and the Northeast, management reported a 10% RevPAR increase in July, signaling sustained momentum for the third quarter.
Revenue growth was primarily driven by pricing power, as the average daily rate climbed 390 basis points, offsetting a slight 50 basis point decline in occupancy.
The company carries $418 million in total debt, with significant exposure to floating SOFR rates through a $200 million term loan and a revolving credit facility, alongside $143 million in fixed-rate debt.