Key Highlights

  • Chatham's $0.10 quarterly common Dividend trades ex-date September 30, 2026, payable October 15, unchanged from recent quarters.
  • Second-quarter RevPAR rose over 3% to $158, an all-time second-quarter high, with Net Income of $6 million, or $0.13 per diluted share, up from $3 million and $0.07.
  • Adjusted FFO per diluted share improved 22% to $0.48 from $0.39, with Hotel EBITDA margins rising 220 basis points to 41%.
  • August RevPAR growth accelerated to 8% for the 39-hotel portfolio, following 9% and 10% growth in June and July, respectively.

Overview

Chatham Lodging Trust's (NYSE:CLDT) $0.10 quarterly dividend yields approximately 2.98% and was declared alongside a second quarter in which AFFO per diluted share rose 22% to $0.48, supported by RevPAR growth to an all-time second-quarter high of $158. Subsequent monthly RevPAR data showed continued acceleration, with August growth of 8% following 9% and 10% increases in June and July.

Dividend Program and Shareholder Returns

Chatham's Board of Trustees declared its quarterly common share dividend of $0.10 per share on September 8, 2026, payable October 15 to shareholders of record September 30. The company also declared a quarterly preferred share dividend of $0.41406 per preferred share, payable the same date. The common dividend rate has remained $0.10 per share in recent quarters.

About the Company

Chatham Lodging Trust is a lodging REIT that invests in upscale, extended-stay hotels and premium-branded, select-service hotels, with a portfolio concentrated in Silicon Valley and, following a March 2026 acquisition, an expanded Midwest presence.

Financial Performance Behind the Payout

Chatham reported second-quarter RevPAR of $158 for its 39 comparable hotels, an increase of over 3% and an all-time second-quarter high. Net income applicable to common shareholders was $6 million, or $0.13 per diluted share, compared with $3 million and $0.07 in the prior-year quarter. GOP margins rose 50 basis points to 47%, and Hotel EBITDA margins rose 220 basis points to 41%. Adjusted EBITDA increased over $4 million, or 15%, to $33 million. Adjusted FFO per diluted share improved 22% to $0.48 from $0.39, with AFFO of $24 million versus $20 million a year earlier.

Accelerating Monthly RevPAR Trends Extend the Quarter's Momentum

July RevPAR for the 39 comparable hotels accelerated 10% to $169, an all-time high for July, before August RevPAR growth moderated to 8%, following June's 9% increase, indicating sustained but slightly decelerating momentum heading into the second half. The acquired six-hotel Midwest portfolio, purchased in March 2026 for $92 million, produced RevPAR growth of 9% in the second quarter to $135, building on a 6% increase in the first quarter and exceeding Underwriting expectations. Through the end of the second quarter, the company had repurchased 2.5 million shares at an average price of $7.29, equating to a 10% Capitalization Rate based on 2026 corporate net Operating Income guidance, a capital-return program distinct from the dividend itself.

Outlook

Chatham's dividend has remained $0.10 per share. Continued RevPAR momentum following August's 8% growth, Midwest portfolio performance relative to its underwriting expectations, and the pace of continued share repurchases are the relevant considerations.