Chatham Lodging Trust (CLDT) Q4 2024 earnings summary

Executive summary

• Achieved 4% year-over-year RevPAR growth in Q4 2024, outperforming industry by 56% and maintaining industry-leading EBITDA margins among select service hotel REITs.

• Sold or under contract to sell six older, low-RevPAR hotels for $101 million, reducing leverage to 23% from 25% last year and aiding portfolio repositioning.

• Returned $22 million in dividends to shareholders and completed multi-year balance sheet repositioning.

• Net loss narrowed to $1.9M from $9.3M in Q4 2023; net loss per diluted share improved to $(0.08) from $(0.23).

• Portfolio quality highlighted by highest RevPAR among select service lodging REITs and strong business travel demand.

Financial highlights

• Q4 2024 revenue was $75.1M, up from $72.3M in Q4 2023; full-year revenue reached $317.2M.

• Q4 hotel EBITDA was $24.3M; Adjusted EBITDA $21.4M; Adjusted FFO $0.20 per share.

• GOP margin for Q4 was 41%, hotel EBITDA margin 33%, both up year-over-year.

• Net debt reduced by $29M in 2024; net debt to LTM EBITDA at 3.9x, down from historical 5.5–6x.

• Dividends per common share: $0.07 for Q4, $0.28 for 2024.

Outlook and guidance

• 2025 guidance: RevPAR growth of 1%-3.5%, Adjusted EBITDA $92–$97M, Adjusted FFO per share $1.01–$1.11.

• Q1 2025 guidance: RevPAR growth 3%-4%, Adjusted EBITDA $16.7–$18.3M, Adjusted FFO per share $0.12–$0.15.

• Hotel EBITDA margin projected at 34.8%–35.8% for 2025.

• Guidance reflects impact of five asset sales and assumes reinvestment into accretive acquisitions.

• Room count expected to decrease from 5,475 in Q1 to 5,168 after pending asset sales.