Chatham Lodging Trust ( (CLDT) ) has released its Q3 earnings. Here is a breakdown of the information Chatham Lodging Trust presented to its investors.
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Chatham Lodging Trust is a real estate investment trust (REIT) specializing in upscale, extended-stay hotels and premium-branded, select-service hotels across the United States. The company owns a portfolio of 39 hotels and is known for its focus on technology-driven markets.
In its third-quarter 2024 earnings report, Chatham Lodging Trust highlighted a RevPAR (revenue per available room) growth of 2.1% excluding renovated hotels, with a notable 8% increase in their Silicon Valley and Bellevue properties. However, the company reported a decrease in net income to $4.3 million, down from $7.5 million in the third quarter of 2023, alongside a slight decline in hotel EBITDA margins.
Key financial performance metrics revealed a modest increase in RevPAR to $150, with adjusted EBITDA at $29.6 million compared to $30.6 million the previous year. The company is actively recycling assets, having entered agreements to sell five hotels, expected to generate $80 million in net proceeds aimed at reducing debt. Despite the decline in some financial metrics, the company achieved consensus estimates for adjusted FFO per share.
Looking ahead, Chatham Lodging Trust is poised to benefit from anticipated interest rate declines due to its floating rate debt structure. The company continues to focus on strategic renovations and maintaining a strong presence in tech-driven markets, with plans to leverage proceeds from hotel sales to enhance its financial position and operational capabilities.
