Chatham Lodging Trust stock gets stronger outlook after Q3 growth

Published on 11/09/2026 at 03:30 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Chatham Lodging Trust stock is in focus after stronger third-quarter hotel metrics and a higher 2026 adjusted FFO outlook. Silicon Valley led growth.

Chatham Lodging raises its outlook

Third-quarter RevPAR reached a record 161 US dollars across 39 comparable hotels.
Adjusted FFO per diluted share rose 31 percent from a year earlier to 0.46 US dollars.
Silicon Valley and the recently acquired six-hotel portfolio led operating growth.

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Chatham Lodging Trust reported stronger hotel operations for the third quarter ended September 30, 2026, and raised its full-year outlook for adjusted funds from operations. The company said in a GlobeNewswire release on November 5 that RevPAR increased more than 8 percent year over year to 161 US dollars across 39 comparable hotels.

Hotel demand lifts operating metrics

Occupancy rose 390 basis points to 83 percent, while average daily rate increased to 194 US dollars. Adjusted Hotel EBITDA margin expanded 190 basis points to 39 percent, and adjusted EBITDA grew 21 percent to 32 million US dollars.

Adjusted FFO reached 23 million US dollars, or 0.46 US dollars per diluted share, compared with 18 million US dollars, or 0.35 US dollars per share, in the year-earlier quarter. The company said prior periods were recast after it began excluding share-based compensation from adjusted FFO in 2026, in line with most public lodging REITs.

Silicon Valley drives portfolio growth

RevPAR at Chatham's four Silicon Valley hotels increased 23 percent to 174 US dollars. The six-hotel portfolio acquired in March also gained traction, with RevPAR up 10 percent to 132 US dollars and occupancy rising to 85 percent.

Chatham raised its 2026 adjusted FFO guidance to 1.38 to 1.40 US dollars per diluted share. The company expects adjusted EBITDA of 104.2 million to 105.3 million US dollars and RevPAR growth of 4.0 percent to 4.5 percent for the year.

The outlook includes the seasonal slowdown in the final quarter and planned renovations at three hotels. Chatham also began construction of a Home2 Suites by Hilton in Portland, Maine, with opening expected in the second quarter of 2028.

Business model and competitive position

Chatham Lodging Trust is a self-advised US real estate investment trust focused on upscale extended-stay hotels and premium-branded select-service hotels. It owns 39 hotels with 5,610 rooms and suites across 18 states and the District of Columbia, according to the company release. Simply Wall St lists RLJ Lodging Trust, Sunstone Hotel Investors and DiamondRock Hospitality as competitors. Chatham is smaller than those peers and is more concentrated in extended-stay and select-service lodging.