Chatham Lodging Trust Reports Strong Q4 Performance

REIT outperforms industry, focuses on expense control and capital returns

Published on Feb. 28, 2026

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Chatham Lodging Trust (NYSE:CLDT) executives outlined a year of operating margin resilience, balance sheet strengthening and continued capital returns during the company's fourth-quarter 2025 earnings call. Management also provided 2026 guidance that reflects largely flat RevPAR expectations, easier year-over-year comparisons after a challenging first quarter, and ongoing share repurchases.

Why it matters

Chatham Lodging Trust's strong performance in 2025, despite industry headwinds, demonstrates the company's ability to effectively manage expenses and generate robust operating margins. The REIT's focus on capital allocation, including share buybacks and selective asset sales, also highlights its financial discipline and commitment to shareholder value creation.

The details

For the fourth quarter of 2025, Chatham reported hotel EBITDA of $22.4 million and adjusted EBITDA of $20.2 million. The company generated a GOP margin of 40.2% and a hotel EBITDA margin of 33.2%, aided by expense control and $550,000 in property tax refunds. Labor and benefits costs rose just under 2% year over year, helping limit the decline in labor-related departmental profit to about 1%. The company also saw a $200,000 reduction in guest acquisition-related commission costs, benefiting margins by roughly 20 basis points.

  • Chatham Lodging Trust held its fourth-quarter 2025 earnings call on February 25, 2026.
  • The company completed four asset sales in 2025 totaling $71.4 million, including the Homewood Billerica, which was sold in late December for $17.4 million.

The players

Chatham Lodging Trust

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.

Jeff Fisher

CEO of Chatham Lodging Trust.

Jeremy Wegner

CFO of Chatham Lodging Trust.

Dennis Craven

COO of Chatham Lodging Trust.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

Chatham Lodging Trust's strong performance in 2025, marked by resilient operating margins, balance sheet strengthening, and continued capital returns, highlights the REIT's ability to effectively navigate industry challenges and maintain its commitment to shareholder value creation.