Chatham Lodging Trust ( (CLDT) ) has released its Q4 earnings. Here is a breakdown of the information Chatham Lodging Trust presented to its investors.
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.
Chatham Lodging Trust reported strong financial results for the fourth quarter of 2024, highlighted by a notable increase in Revenue Per Available Room (RevPAR) and improved hotel margins. The company also made strategic moves in asset recycling and debt reduction, positioning itself well for future growth.
Key financial metrics for the quarter include a 4% increase in RevPAR to $129, driven by a 5% rise in occupancy to 74%, despite a slight decline in the average daily rate. The company reduced its net loss to $1.9 million from $9.3 million in the previous year, while adjusted EBITDA rose to $21.1 million. Additionally, Chatham successfully sold three hotels, generating $44 million in proceeds, and reduced its net debt by $29 million.
Chatham’s strategic focus on technology-driven markets like Silicon Valley and Bellevue has paid off, with significant RevPAR growth in these areas. The company also maintained strong gross operating profit margins and continued to outperform industry peers in RevPAR growth, benefiting from a resurgence in business travel and technology sector demand.
Looking ahead, Chatham Lodging Trust remains optimistic about its financial performance in 2025, with expectations of continued RevPAR growth and improved operating margins. The company’s solid financial position and strategic market focus are expected to drive further success in the coming year.
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