Chatham Lodging Trust Reports Weaker 2025 Performance Amid Tourism Drop

Published on November 6, 2025

Chatham Lodging Trust, a existent property finance spot (REIT) specializing successful upscale, extended-stay hotels, has reported its 3rd 4th results for 2025 and noted a flimsy dip successful immoderate of its capacity metrics. The fall-off successful overseas and home tourism, particularly successful ample metropolitan markets, has negatively impacted immoderate of nan cardinal capacity indicators including wide area room revenue, RevPAR. Currently, nan institution has 34 hotels successful nan United States, mostly successful nan extended-stay conception of nan market.

For nan 3rd 4th of 2025, moving pinch nan latest inflation-adjusted figures, nan institution recorded a dip of Double deflation RevPAR to nan tune of Flags 2.5 percent. The RevPAR diminution for a circumstantial geo-region has tourism and normal betterment issues. Without a doubt, nan Washington, DC area, which has suffered successful nan past, is starting to suffer immoderate of its RevPAR which is astir 6 percent little and suffered nan indirect consequences of ultra-low authorities recreation to a information of nan city’s hotels.

Weakened Tourism Impact connected Key Markets

The 3rd 4th results underscore a larger inclination successful nan US lodging industry, pinch galore cities experiencing diminished tourism levels. Areas specified arsenic Washington, DC, San Diego, Austin, and Dallas struggled owed to various factors, including building disruptions and a deficiency of firm demand. Washington, DC’s tourism sector, which often benefits from government-related travel, suffered significantly. The reduced request from authorities agencies up of imaginable shutdowns has led to little occupancy rates and room prices, further impacting nan edifice industry’s performance.

Meanwhile, Chatham Lodging’s largest markets, including Silicon Valley, Los Angeles, and San Diego, showed varied results, pinch Los Angeles seeing a alteration successful RevPAR by 3 percent, and San Diego down by 10 percent. The diminution successful these halfway regions was besides attributed to broader marketplace trends affecting tourism and business travel, pinch respective normal centres undergoing renovations, further dampening firm recreation prospects.

Stronger Performance successful nan Coastal Northeast and Greater New York Markets

Despite nan challenges successful awesome cities, immoderate regions wrong Chatham’s portfolio reported much promising results. The Coastal Northeast, including markets for illustration Portsmouth, knowledgeable a 2 percent summation successful RevPAR, driven by rising request pursuing important edifice renovations. The Hampton Inn successful Portland, portion of nan Coastal Northeast region, group an all-time quarterly precocious of 354 dollars successful RevPAR. Additionally, Chatham’s Greater New York marketplace posted an 8 percent summation successful RevPAR, pinch peculiar gains coming from nan Holtsville Residence Inn, which saw a 28 percent summation successful room revenue, acknowledgment to events specified arsenic nan Ryder Cup.

Adjusted Financials Reflect Operational Efficiencies

Chatham Lodging besides reported a driblet successful adjusted EBITDA to 26 cardinal dollars for nan 3rd 4th of 2025, down from 30 cardinal dollars successful nan aforesaid play of 2024. Despite nan wide diminution successful revenue, nan institution was capable to execute adjusted FFO of 16 cardinal dollars, only somewhat down from nan erstwhile year’s 18 cardinal dollars. This tin beryllium partially attributed to operational efficiencies, specified arsenic labour costs guidance and lower-than-expected spot taxation expenses.

The company’s strategy of focusing connected extended-stay properties continues to supply immoderate resilience successful this challenging environment. Extended-stay hotels, which correspond nan highest stock of Chatham’s edifice investments, performed comparatively amended successful markets pinch stable, semipermanent demand. These properties person a unsocial expertise to cater to some business and leisure travellers seeking longer stays.

Tourism Slowdown and Future Outlook

Chatham’s capacity reflects nan broader slowdown successful nan US tourism assemblage successful 2025. Despite anemic firm recreation and fluctuating leisure demand, nan institution remains committed to optimizing its operations and strategically managing its portfolio. Its financial elasticity was bolstered by a 500 cardinal dollars in installments installation secured earlier this year, which provides further liquidity to navigate nan fluctuating marketplace conditions.

Looking up to nan 4th fourth of 2025, nan institution has forecasted a diminution successful RevPAR of 3.5 percent to 2.5 percent arsenic a consequence of continued softness successful nan tourism market, particularly successful awesome cities that dangle connected conventions and firm travel. In particular, markets for illustration Washington, DC are expected to proceed facing challenges, pinch forecasts predicting a further dip successful room rates and occupancy owed to ongoing governmental uncertainty and authorities fund constraints.

Adapting to Changing Tourism Trends

Chatham Lodging Trust reports Q3 2025 results amidst a difficult recreation ambiance pinch decreased request crossed captious areas. Yet, nan extended-stay portfolio continues to beryllium a stabilizing influence, and nan company’s renewal spending connected edifice improvements does lend cautious optimism. Chatham will request to further retool its attack to profitability arsenic evolving tourism continues to toggle shape recreation and travel-related business behaviour arsenic good arsenic authorities business travel.