Chatham Lodging reports RevPAR up 5% quarter-to-date through May

Chatham Lodging Trust announced RevPAR grew a strong 5 percent quarter-to-date through May, well above its second quarter guidance of 2.5 to 4.0 percent. RevPAR gained 5 percent in both April and May. Key RevPAR growth metrics: April occupancy was up 6 percent to 83 percent with average daily rate down 1 percent to $177; May occupancy was up 4 percent to 82 percent, and ADR also increased 1 percent to $182; RevPAR growth for the Silicon Valley and Bellevue hotels surged 11 percent through May driven by an approximate 6 percent advance in occupancy to 77 percent and a 6 percent rise in ADR to $188; Other strong markets through May were Cherry Creek, Dallas, Greater New York, San Antonio and San Diego. “Driven by the resurgence in business travel around the country, 14 of our 38 comparable hotels generated double digit RevPAR growth through May, leading us to meaningfully outperform the industry and our peers,” highlighted Jeffrey H. Fisher, Chatham’s chief executive officer and president. “April and May weekday and weekend occupancies were the highest since 2019, and weekday and weekend portfolio ADR exceeded 2019 levels. As occupancies climb, rate growth should accelerate, and this is very encouraging as we enter our busiest time of the year.” During the 2024 second quarter, the company: Repaid the Residence Inn Anaheim $29 million maturing mortgage on April 5th; Borrowed an additional $50 million on its term loan on May 3rd; Acquired on May 30th the recently opened, 148-room Home2 Suites by Hilton Phoenix Downtown for $43 million or approximately $293,000 per room; Issued $23 million of CMBS debt secured by the Hyatt Place Pittsburgh North Shore on May 31st; Repaid the Residence Inn Mountain View $35 million maturing mortgage on May 31st; Expects to issue approximately $37 million of CMBS debt during June.