Chatham Lodging AFFO per share rises 22% in Q2 2026 as RevPAR hits all-time high
WEST PALM BEACH, Fla., Aug. 4. Adjusted funds from operations per diluted share at Chatham Lodging Trust (NYSE: CLDT) rose 22% in the second quarter of 2026 to $0.48, from $0.39 a year earlier, as revenue per available room across the company's 39 comparable hotels climbed 3% to $158, an all-time second-quarter high. The lodging REIT raised full-year guidance and disclosed that July RevPAR reached $169, a record for that month.
Key takeaways
- Chatham Lodging Trust's Q2 2026 AFFO per diluted share rose 22% to $0.48 from $0.39 a year earlier.
- RevPAR across the company's 39 comparable hotels climbed 3% to $158, an all-time second-quarter high.
- Net income applicable to common shareholders was $6.2 million, or $0.13 per diluted share, up from $3.4 million, or $0.07 per share, a year earlier.
- The company raised full-year guidance and reported July RevPAR of $169, a record for that month.
- Adjusted EBITDA rose 15% to $32.7 million and hotel EBITDA margins expanded 220 basis points to 41%.
WEST PALM BEACH, Fla., Aug. 4. Adjusted funds from operations per diluted share at Chatham Lodging Trust (NYSE: CLDT) rose 22% in the second quarter of 2026 to $0.48, from $0.39 a year earlier, as revenue per available room across the company's 39 comparable hotels climbed 3% to $158, an all-time second-quarter high. The lodging REIT raised full-year guidance and disclosed that July RevPAR reached $169, a record for that month.
Second-quarter financials
Net income applicable to common shareholders was $6.2 million, or $0.13 per diluted share, versus $3.4 million, or $0.07 per share, in the year-ago quarter. Adjusted EBITDA rose 15% to $32.7 million from $28.5 million, according to the filing. Hotel EBITDA margins expanded 220 basis points to 41%, and gross operating profit margins widened 50 basis points to 47%.
Occupancy held at 81%, while average daily rate rose 390 basis points to $195. June RevPAR reached $175, itself an all-time monthly record. Chief Operating Officer Dennis Craven said June's 9% RevPAR gain was the highest monthly increase since April 2023, and that the comparable-hotel group would have still matched that mark without the World Cup properties, which added 60 basis points to that month's result.
One accounting note: starting in 2026, Chatham began adding back share-based compensation expense in its AFFO calculation, as peers do, and restated prior periods. The year-ago $0.39 figure reflects that change.
Acquisition portfolio and market results
In March, Chatham acquired six Hilton-branded hotels totaling 589 rooms for $92 million. The portfolio produced RevPAR of $135 in the second quarter, up 9%, with occupancy of 83% and ADR of $163. GOP and hotel EBITDA margins were 49% and 44%, respectively. July RevPAR for those six hotels rose 13%.
Silicon Valley, which accounts for 17% of last-twelve-month hotel EBITDA, saw RevPAR rise 7% to $164. Excluding the Mountain View property, which was under renovation in April and May, July RevPAR for the four Silicon Valley hotels jumped 26%. Greater New York posted a 13% gain to $191. San Diego fell 9% to $199 and the Coastal Northeast declined 6% to $166.
Capital return
Chatham repurchased 0.3 million common shares in the quarter at a weighted-average price of $9.07 per share for approximately $2.8 million. Since the program's inception, the company has bought back 2.5 million shares, about 5% of outstanding shares and units, at a weighted-average price of $7.29 per share, for $18.4 million of its $25 million authorization. Dividends declared per common share were $0.10, up from $0.09 a year earlier.
Construction began on a 130-suite Home2 Suites by Hilton at Portland Downtown-Waterfront. President and Chief Executive Officer Jeffrey H. Fisher said the company's total shareholder returns ranked best among lodging REITs in 2026.