Chatham Lodging Trust (CLDT) investor relations material

Executive summary

• Second quarter results exceeded expectations, with revenue for Q2 2026 up 9.4% year-over-year to $87.8 million, driven by a 3.3% RevPAR increase and a six-hotel acquisition.

• Net income for Q2 2026 rose to $8.5 million, or $0.13 per diluted share, reflecting higher revenues and improved operating performance.

• Business travel, accounting for 75% of EBITDA, is accelerating, especially from small and medium-sized enterprises, while leisure travel remains strong.

• Share repurchases totaled 0.3 million shares in Q2 at an average price of $9.07, with 2.5 million shares repurchased since inception.

• July RevPAR accelerated 10% to $169, an all-time high for the month.

Financial highlights

• Adjusted Hotel EBITDA for Q2 2026 was $35.7 million, up from $30.9 million in Q2 2025; adjusted EBITDA margin rose to 41%.

• Adjusted FFO for Q2 2026 was $23.6 million, or $0.48 per share, up from $20.1 million in Q2 2025.

• GOP margin reached 47%, up 50 basis points year-over-year.

• Dividends declared per common share increased to $0.10 from $0.09 year-over-year.

• Share repurchases totaled $18 million, reducing outstanding shares by 5% at an average price of $7.29.

Outlook and guidance

• Annual guidance raised, with full-year RevPAR growth expected at 1.5%-3% and total hotel revenue projected at $312M–$316M.

• Adjusted EBITDA guidance for 2026 is $63.7M–$66.8M; adjusted FFO per share $1.28–$1.34.

• Q3 RevPAR expected to increase approximately 4%.

• Approximately $13.1 million is planned for hotel renovations and improvements in the second half of 2026.

• Second half outlook is conservative due to geopolitical uncertainties, assuming low single-digit RevPAR growth.