CLDT earnings analysis
What we found in CLDT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Chatham delivered a strong Q2, with revenue rising 9.4% year over year to $87.8 million and GAAP EPS improving to $0.13 from $0.07; revenue also rose 30.1% sequentially from Q1. Growth was supported by 3.3% same-property RevPAR expansion and $7.3 million of revenue from the six-hotel acquisition, driving Adjusted EBITDA up to $32.7 million from $28.5 million. Liquidity remains adequate, but the cash balance fell to $17.7 million following acquisitions and capital spending, and $275.0 million of floating-rate debt leaves annual interest expense exposed by about $2.8 million per 100-basis-point SOFR increase.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue accelerated to $87.8M
- Q2 revenue rose 9.4% year over year to $87.8 million from $80.3 million, and increased 30.1% sequentially from $67.5 million in Q1 2026. Room revenue grew 9.9% to $80.6 million.
- Earnings and adjusted FFO improved
- GAAP net income increased to $8.5 million from $5.5 million a year earlier, while diluted EPS was $0.13 versus $0.07 in Q2 2025 and a loss of $0.13 in Q1 2026. Adjusted FFO increased to $23.6 million from $20.1 million.
- Pricing drove same-property RevPAR growth
- Same-property RevPAR grew 3.3% to $157.97, driven by a 3.9% ADR increase to $195.34 despite a 0.5% occupancy decline to 80.9%. June same-property RevPAR increased 8.7%.
- Acquired hotels lifted EBITDA
- The six-hotel portfolio acquired in March contributed $7.3 million of Q2 revenue against $3.7 million of hotel operating expense. Adjusted Hotel EBITDA rose 15.7% to $35.7 million from $30.9 million.
- Operating cash flow and cash conversion rose
- Operating cash flow rose $12.6 million to $38.9 million in the first six months, while capital improvements were $13.4 million. This implies $25.5 million of operating cash flow after hotel capital improvements for the six-month period.
- Tax savings and buybacks supported returns
- Property taxes, ground rent and insurance expense fell $0.8 million to $5.3 million, aided by successful property-tax appeals and 2025 hotel sales. The company also repurchased 311,745 shares for $2.8 million during Q2.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Floating-rate debt retains rate sensitivity
- Debt totaled $418.2 million at June 30, 2026, including $275.0 million of floating-rate debt. A hypothetical 100-basis-point increase in SOFR would add approximately $2.8 million of annual interest expense.
- Acquisition spending reduced cash balance
- Cash, cash equivalents and restricted cash declined $14.9 million from December 31, 2025 to $17.7 million at June 30, 2026, as the company used $92.5 million for six-hotel acquisitions and $13.4 million for capital improvements in the first half.
- Remaining 2026 capital needs are sizable
- Management expects an additional $13.1 million of renovations, discretionary and emergency expenditures during the remainder of 2026. This follows $13.4 million of hotel capital improvements in the first six months.
- Occupancy softened despite RevPAR growth
- Same-property occupancy declined 0.5% to 80.9% in Q2, meaning the 3.3% RevPAR increase depended entirely on the 3.9% ADR gain. Management notes that competitive pressures may limit its ability to raise room rates.
- No updated risk factors; contractual obligations remain
- There were no material changes to the risk factors disclosed in the 2025 Form 10-K. Nonetheless, total debt principal and interest obligations were $524.0 million, with $24.4 million payable within 12 months.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.13
What they said about what is next.
The 10-Q does not provide numerical revenue or EPS guidance. Management expects lodging-industry RevPAR to increase modestly during the remainder of 2026 and expects to invest approximately $13.1 million in renovations, discretionary and emergency hotel expenditures over the remainder of 2026.
The filing reads better than the one before it.
What came before.
- 10-Q · May 7, 2026
- Chatham Lodging Trust reported Q1 2026 revenue of $67.5 million, a slight decrease of 1.6% compared to the same period last year. The company experienced a net loss of $4.5 million, reversing from a net income of $1.5…
- 10-K · February 27, 2026
- Chatham Lodging Trust owns 33 hotels (5,021 rooms) and focuses on premium-branded upscale extended-stay and select-service hotels in the largest U.S. markets. Reported aggregate 2025 revenue (sum of quarters) was…
- 10-Q · November 5, 2025
- Chatham Lodging Trust reported third-quarter revenue of $78,409,000, down from $87,177,000 in the year-ago quarter, with operating income falling to $9,933,000 from $12,504,000 and diluted earnings per common share of…
- 10-Q · August 6, 2025
- Chatham Lodging reported Q2 2025 revenue of $80,294,000 and diluted EPS of $0.07. Revenue and operating income before gains declined versus Q2 2024 (revenue $86,479,000; operating income before gains $14,078,000), but…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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