Chatham Lodging Trust Q4 FY2025 earnings call

• Operationally 2025 was good despite industry volatility, RevPAR beat industry for 4th year, GOP margin decline limited. Labor and benefits costs declined slightly. Reclaimed highest operating margins since pandemic. - Strategically sold four older hotels, repurchased shares. Added 10 rooms to portfolio. Participated in GRESB, completed large financing, reduced net debt and leverage. Increased common dividend. - Look ahead to 2026: wage pressures moderating. Intend to utilize most of share repurchase plan. Positioned to outperform industry. Will opportunistically sell older assets. Expect to commence Portland, Maine hotel development. - Talked about Silicon Valley market performance and outlook, other large markets' performance and outlook, CapEx details.

For the fourth consecutive year, RevPAR performance beat the industry. GOP margin decline was limited to 20 basis points by focusing on staffing and productivity. Labor and benefits costs declined slightly in 2026. Sold four older lower RevPAR hotels, repurchased shares. Corporate side added 10 rooms to portfolio. Largest market Silicon Valley RevPAR grew 1% in 2026 with tale of two halves. Occupancy at Silicon Valley hotels was 72%, ADR up 2.5% in quarter. Six predominantly leisure hotels produced RevPAR growth of 50 basis points. Shutdown impacted DC-area hotels. California markets had varying RevPAR. Coastal Northeast hotels had better comps in 2026. Texas markets felt convention demand impact. Home2 in Phoenix had RevPAR up ~17%. Charleston and Savannah growing. Top RevPAR hotels listed. GOP margins limited decline in Q4. Hotel EBITDA margins grew 70 basis points. Labor and benefits increased 1.2% per occupied room. Top GOP producers listed.

2026 guidance: RevPAR minus 0.5% to plus 1.5%, adjusted EBITDA $84,000,000 to $89,000,000, adjusted FFO per share $1.04 to $1.14. Excludes noncash stock-based compensation. Reflects asset sales. Q1 2026 RevPAR expected low single digits, rest of year positive. Guidance assumes SOFR decline based on forward curve.

Q: On other dispositions and room to sell assets in 2026?

A: Dennis said probably one or two more to sell, with purpose of reinvesting dollars.

Q: On acquisition side and deploying disposition proceeds?

A: Jeff said comfortable with leverage levels, sellers more realistic, will take advantage to make deals.

Q: On expense and margin pressures in 2026?

A: Dennis said utilities have pressure in first quarter, outside of that, labor cost control is key.

Q: On expense productivity improvements room?

A: Dennis said headcount down 13% year over year, focus on controlling wages and headcount.

Q: On World Cup impact and Portland development cost?

A: Dennis said conservative on World Cup impact, Portland development cost not in CapEx, official guidance on that at next earnings call.