Chatham Lodging Trust Q1 Earnings Call Highlights

Chatham Lodging Trust (NYSE:CLDT) executives said the edifice REIT delivered a stronger-than-expected archetypal quarter, supported by improving request successful Silicon Valley, disbursal controls, a precocious closed acquisition and ongoing stock repurchases.

Chairman, President and Chief Executive Officer Jeff Fisher said the institution has accrued its 2026 guidance by astir 15% since February, citing “strong operating results,” an accretive acquisition and a amended outlook for the remainder of the year. Chatham besides raised its communal dividend by 11% successful the archetypal quarter, pursuing a 28% summation successful 2025. Fisher said the dividend remains good covered, with a communal dividend-to-FFO payout ratio of 32% based connected updated guidance.

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“We volition reevaluate the quarterly dividend aboriginal this year,” Fisher said.

First-quarter results apical expectations

Senior Vice President and Chief Financial Officer Jeremy Wegner said first-quarter edifice EBITDA was $21.4 million, adjusted EBITDA was $18.4 cardinal and adjusted FFO was $0.20 per share. Chatham generated a GOP borderline of 42.2% and a edifice EBITDA borderline of 31.8% successful the quarter.

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Wegner said GOP margins roseate 60 ground points from the prior-year period, helped by disbursal controls. Hotel EBITDA margins accrued by 140 ground points, reflecting some disbursal absorption and $500,000 of spot taxation refunds.

On a comparable basis, Fisher said edifice EBITDA roseate 5% and edifice EBITDA margins improved 135 ground points. RevPAR finished the 4th up 1%, exceeding the company’s expectations, aft moving from a 5% diminution successful January to 1% maturation successful February and 5% maturation successful March. Fisher noted that the institution faced hard comparisons due to the fact that of wildfire-related request astatine its Los Angeles hotels successful the anterior year.