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• RevPAR Growth: 3% for the year, 4% in Q4, exceeding industry performance.

• GOP Margin: 43% for the year, with a 150 basis point expansion in Q4.

• Net Debt Reduction: $29 million in 2024, following a $26 million reduction in 2023.

• Leverage Ratio: Reduced to 23% from 25% in the previous year.

• Dividends Returned: $22 million to shareholders in 2024.

• Hotel EBITDA: $24.3 million in Q4 2024.

• Adjusted EBITDA: $21.4 million in Q4 2024.

• Adjusted FFO: $0.20 per share in Q4 2024.

• Operating Margins: Increased by 150 basis points in Q4.

• Room Count: Expected to be 5,475 in Q1 2025, reducing to 5,168 for the remainder of the year.

• CapEx Budget: $26 million for 2025, including three hotel renovations.

• Debt Repayment: $297 million of maturing debt repaid in 2024.

• Asset Sales: Proceeds of $101 million from selling six hotels.

• Q1 2025 Guidance: RevPAR growth of 3% to 4%, adjusted EBITDA of $16.7 million to $18.3 million, and adjusted FFO per share of $0.12 to $0.15.

• Full Year 2025 Guidance: RevPAR growth of 1% to 3.5%, adjusted EBITDA of $92 million to $97 million, and adjusted FFO per share of $1.01 to $1.11.

• Warning! GuruFocus has detected 3 Warning Signs with CLDT.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Chatham Lodging Trust (NYSE:CLDT) achieved a RevPAR growth of 3%, surpassing industry performance by 56%.

• The company successfully reduced its net debt by $29 million in 2024, following a $26 million reduction in 2023.

• Chatham Lodging Trust (NYSE:CLDT) completed a multi-year balance sheet repositioning, reducing its leverage ratio to 23% from 25% a year ago.

• The company participated in the global real estate sustainability benchmark, achieving a score of 83 and earning 4 out of 5 GRESB stars.

• Chatham Lodging Trust (NYSE:CLDT) returned $22 million in dividends to shareholders, reflecting strong cash flow management.

Negative Points

• The company faces challenges in the acquisition market, with a thin supply of desirable assets and a 100 basis point bid-ask gap.

• RevPAR growth in Dallas declined due to the nearby convention center's closure for expansion.

• Chatham Lodging Trust (NYSE:CLDT) experienced increased payroll-related costs, such as medical insurance and workers' compensation, which rose by 19% in Q4.

• The company did not include any acquisitions in its 2025 guidance, indicating potential limitations in growth opportunities.

• Chatham Lodging Trust (NYSE:CLDT) has not seen significant upward movement in its stock price over the past 12 to 18 months, reflecting market valuation challenges.