Q4 2025 Chatham Lodging Trust Earnings Call

February 25, 2026

Conference call at this time. All lines are in a lesson. Only mode following the presentation, we will conduct a question and answer session. If at any time during this call require immediate assistance, please press star zero for the operator.

I would now like to turn the conference call over to Chris Daly, owner of daily grey Inc. Please go ahead.

Thank you, Jenny. Good morning, everyone, and welcome to the chatam. Lodging trust fourth quarter 2025 results conference call. Please note that many of our comments today are considered forward-looking statements as defined by federal Securities Law. These statements are subject to risks and uncertainties, both known and unknown as described in our most recent form, 10K and other SEC filings.

All information in this call is as of February 25th, 2026 and unless otherwise noted and the company undertakes, no obligation to update any forward-looking statement to confirm the statement to actual results or changes in the company's expectations.

You can find copies copies of our SEC filings and earnings release which contain reconciliations to non-gaap financial measures referenced on this call on our website at chatam lodging trust.com.

Now, to provide you with some insights into chatam 2025, fourth quarter results, allow me to introduce Jeff Fischer, chairman, president and Chief Executive Officer, Dennis Craven Executive, Vice, President, and Chief Operating Officer and Jeremy Wagner, senior vice president and Chief Financial Officer. Let me turn the session over to Jeff Fischer, Jeff.

Okay. Chris, thank you very much and I certainly appreciate everyone joining us here for our call today before, talking about the fourth quarter, specifically, in our outlook. For this year, I'd like to spend just a few minutes, highlighting, some noteworthy accomplishments as we look back at the last year.

Operationally. It was a really good year for us to spite the extreme volatility that adversely impacted the industry and our Top Line.

On the top line for the fourth consecutive year though, our revpar performance beat the industry and we continued pushing pushing our other operating profits other department, operating profits higher as well.

Despite essentially flat revpar. And for this, we're really proud. We were able to limit our GOP margin decline to only 20 basis points by staying laser focused on our staffing levels and improving productivity, our labor and benefits costs. Actually declined slightly in 2026. Offsetting wage increases of almost 4% in a year. And most importantly, for the first time since the pandemic, we generated the highest operating margins in the industry reclaiming, our top spot, uh, among the rankings that we held for an entire decade from 2010 to 2019.

Looking ahead to this year, our hotel wages are reassessed in July each year and our wage increase for the second half of 2025, is up only 2% versus the first half of the year which means wage pressures are moderating throughout 2026.

strategically, we sold 4 of our older lower rev par hotels at an approximate cap rate of 6% and use those proceeds to reduce debt and to acquire shares under the repurchase plan, we initiated in 2025

Since announcing the plan, we've repurchased approximately 1.8 million shares or approximately 4% of our outstanding shares at an average price of $6.87 per share.

For a total repurchase of almost $13 million or just over half of our 25 million plan.

At our average acquisition price. Those shares were required acquired at an approximate 9 and a half percent cap rate based on our 2026 corporate noi guidance and might be the only lodging rate with an average repurchase price below current trading levels since peers, initiated their repurchase plans.

using average multiples for the last 25 years, these repurchases certainly are going to be accretive

Debt by 700 million and further reduce our leverage ratio to a mere 20%.

by the way that leverage compares to almost 35% in 2019,

All of these accomplishments allowed us to increase returns to our shareholders and we're able to increase our common dividend by 2020, uh, excuse me, by 28% and 2025.

Including our repurchase plan and both common and preferred dividends, we returned approximately 35 million to our shareholders.

It was truly a great job by our teams at Island hospitality and chattam staying in constant communication. And on the same page, delivering solid results throughout our very volatile year.

As we move forward, we're confident in the industry. Long term, the supply demand equation should benefit existing owners as construction costs remain quite high. And development is only justified in certain markets. GDP growth is healthy and should accelerate if even a portion of the trillions of dollars of announced investments in technology and reassuring of manufacturing, come to fruition in the United States.

Jeff: We returned approximately $35 million to our shareholders. It was truly a great job by our teams at Island Hospitality and Chatham, staying in constant communication and on the same page, delivering solid results throughout a very volatile year. As we move forward, we're confident in the industry long term. The supply-demand equation should benefit existing owners as construction costs remain quite high, and development is only justified in certain markets. GDP growth is healthy and should accelerate if even a portion of the trillions of dollars of announced investments in technology and reshoring of manufacturing come to fruition in the United States. Existing hotel owners should benefit via stronger RevPAR growth in the years ahead.

Jeff Fisher: We returned approximately $35 million to our shareholders. It was truly a great job by our teams at Island Hospitality and Chatham, staying in constant communication and on the same page, delivering solid results throughout a very volatile year. As we move forward, we're confident in the industry long term. The supply-demand equation should benefit existing owners as construction costs remain quite high, and development is only justified in certain markets. GDP growth is healthy and should accelerate if even a portion of the trillions of dollars of announced investments in technology and reshoring of manufacturing come to fruition in the United States. Existing hotel owners should benefit via stronger RevPAR growth in the years ahead.

Existing Hotel. Owners should benefit be a stronger revpar growth in the years ahead.

We obviously need to be able to push those incremental Revenue dollars down to GOP. And really, for the first time in almost a decade wage, pressures are mitigating to the lower single digit range, which is vital given that labor costs are our largest expense.

Jeff: We obviously need to be able to push those incremental revenue dollars down to GOP. Really, for the first time in almost a decade, wage pressures are mitigating to the lower single-digit range, which is vital given that labor costs are our largest expense. As we sit here today, we're in a great position to deliver earnings growth and shareholder returns in multiple ways. First, we will continue to repurchase shares and intend to utilize most, if not all, of our $25 million plan this year. Second, operationally, we are positioned to outperform the industry on both top and bottom line. There was a lot of noise in 2025 that impacted RevPAR in some of our key markets. Hopefully things calm down this year, and if they do, our operating model is best at driving profits higher, as we've demonstrated over and over again.

Jeff Fisher: We obviously need to be able to push those incremental revenue dollars down to GOP. Really, for the first time in almost a decade, wage pressures are mitigating to the lower single-digit range, which is vital given that labor costs are our largest expense. As we sit here today, we're in a great position to deliver earnings growth and shareholder returns in multiple ways. First, we will continue to repurchase shares and intend to utilize most, if not all, of our $25 million plan this year. Second, operationally, we are positioned to outperform the industry on both top and bottom line. There was a lot of noise in 2025 that impacted RevPAR in some of our key markets. Hopefully things calm down this year, and if they do, our operating model is best at driving profits higher, as we've demonstrated over and over again.

As we sit here today, we're in a great position to deliver earnings growth and shareholder returns in multiple ways. First, we will continue to repurchase shares and intend to utilize. Most, if not all of our 25 million plan this year, second operationally, we are positioned to outperform the industry on both top and bottom line. There was a lot of noise in 2025 that impacted revpar in some of our key markets. So hopefully things calm down this year and if they do our operating model is best at driving profits higher as we've demonstrated over and over again.

Third will continue to opportunistically. Sell older non-performing assets. With the goal of reinvesting. Those proceeds into share repurchases or hotel Investments.

And on that front, we were disappointed not to make any external Acquisitions in 2025 but sometimes the best deals are the ones that you don't do and we never had enough conviction on any deals and chose to remain patient.

With significant financial flexibility.

Where you are confident that we can make some Acquisitions in 2026 as financing costs of lessons and sell our pricing expectations have adjusted somewhat from where we were a year ago.

Jeff: Third, we'll continue to opportunistically sell older, non-performing assets with the goal of reinvesting those proceeds into share repurchases or hotel investments. On that front, we were disappointed not to make any external acquisitions in 2025. Sometimes the best deals are the ones that you don't do, and we never had enough conviction on any deals and chose to remain patient. With significant financial flexibility, we are confident that we can make some acquisitions in 2026, as financing costs have lessened, and seller pricing expectations have adjusted somewhat from where we were a year ago. The markets, though, of course, will have to make sense for us. We are looking for some continued diversification, both in markets and demand generators. Of course, yields have to approximate the implied yield on buying our own stock.

Jeff Fisher: Third, we'll continue to opportunistically sell older, non-performing assets with the goal of reinvesting those proceeds into share repurchases or hotel investments. On that front, we were disappointed not to make any external acquisitions in 2025. Sometimes the best deals are the ones that you don't do, and we never had enough conviction on any deals and chose to remain patient. With significant financial flexibility, we are confident that we can make some acquisitions in 2026, as financing costs have lessened, and seller pricing expectations have adjusted somewhat from where we were a year ago. The markets, though, of course, will have to make sense for us. We are looking for some continued diversification, both in markets and demand generators. Of course, yields have to approximate the implied yield on buying our own stock.

The markets though, of course, will have to make sense for us and we are looking for some diverse continued diversification. Both in markets and demand generators and of course yields have to approximate the implied yield on buying our own stock.

We want to invest in markets that are going to benefit from increased business Investments, which is generally the Central and Southeastern us.

With significant financial flexibility.

Where you are confident that we can make some Acquisitions in 2026.

Lastly, we do expect to commence our Portland. Maine Hotel development in the coming months with opening before the 2028. Summer, as I stated earlier, in my comments Hotel development. Really, only makes sense in certain markets and downtown Portland happens to be 1 of them, especially considering we have no cost basis in the land.

As financing costs of lessons and sell, our pricing expectations have adjusted somewhat from where we were a year ago.

Our focus is on increasing shareholder returns. And in addition to the share repurchase program, we believe our initiatives should be, should enable us to return even more money to our shareholders via further increased dividends this year.

Jeff: We want to invest in markets that are gonna benefit from increased business investments, which is generally the Central and Southeastern US. Lastly, we do expect to commence our Portland, Maine, hotel development in the coming months, with opening before the 2028 summer. As I stated earlier in my comments, hotel development really only makes sense in certain markets. Downtown Portland happens to be one of them, especially considering we have no cost basis in the land. Our focus is on increasing shareholder returns. In addition to the share repurchase program, we believe our initiatives should enable us to return even more money to our shareholders via further increased dividends this year. Before Dennis gets into the Q4 details, I do want to spend a few minutes talking about our largest market, Silicon Valley, its performance in 2025, and our outlook beyond.

Jeff Fisher: We want to invest in markets that are gonna benefit from increased business investments, which is generally the Central and Southeastern US. Lastly, we do expect to commence our Portland, Maine, hotel development in the coming months, with opening before the 2028 summer. As I stated earlier in my comments, hotel development really only makes sense in certain markets. Downtown Portland happens to be one of them, especially considering we have no cost basis in the land. Our focus is on increasing shareholder returns. In addition to the share repurchase program, we believe our initiatives should enable us to return even more money to our shareholders via further increased dividends this year. Before Dennis gets into the Q4 details, I do want to spend a few minutes talking about our largest market, Silicon Valley, its performance in 2025, and our outlook beyond.

Before Dennis gets into the fourth quarter details, I do want to spend a few minutes talking about our largest market, Silicon Valley, its performance in 2025, and our Outlook Beyond.

The markets, though, of course, will have to make sense for us, and we are looking for some continued diversification—both in markets and demand generators. And, of course, yields have to approximate the implied yield on buying our own stock. We want to invest in markets that are going to benefit from increased business investments, which is generally the Central and Southeastern U.S.

And then we were off 4% in the third quarter and less than 1% in the fourth.

Our Mountain View residents in was under renovation for the last 2 months of 2025 and will remain under Renault through March of this year.

Jeff: Silicon Valley is our largest market, and RevPAR grew only 1% in 2026, but it was a tale of two halves, as RevPAR was up 5% in the first half of the year, and then we were off 4% in Q3 and less than 1% in Q4. Our Mountain View Residence Inn was under renovation for the last 2 months of 2025 and will remain under reno through March of this year. If you recall from our Q3 call, we lost some business related to pricing strategies around a single corporate client at our 2 Sunnyvale hotels. Q3 RevPAR was down 9% in Q3, and we did a great job replacing that business or some of it in Q4, with RevPAR only down 1%.

Jeff Fisher: Silicon Valley is our largest market, and RevPAR grew only 1% in 2026, but it was a tale of two halves, as RevPAR was up 5% in the first half of the year, and then we were off 4% in Q3 and less than 1% in Q4. Our Mountain View Residence Inn was under renovation for the last 2 months of 2025 and will remain under reno through March of this year. If you recall from our Q3 call, we lost some business related to pricing strategies around a single corporate client at our 2 Sunnyvale hotels. Q3 RevPAR was down 9% in Q3, and we did a great job replacing that business or some of it in Q4, with RevPAR only down 1%.

Before Dennis gets into the fourth quarter details, I do want to spend a few minutes talking about our largest market, Silicon Valley, its performance in 2025, and our outlook beyond.

Also, if you recall from our third quarter, call we lost some business related to pricing strategies around a single corporate client at our 2. Sunnyvale hotels, third quarter RV park was down 9% in, uh, in the third quarter. And we did a great job replacing that business or some of it in the fourth, whether par only down 1%,

Silicon Valley is our largest market and rev Park, grew only 1% in 2026, but it was a tale of 2 halves as revpar was up, 5% in the first half of the year and then we were off 4% in the third quarter and less than 1% in the fourth.

we'll continue to feel some impacts uh, you know, in the first quarter of this year as to that account, but as the year progresses our comps will get better and we will benefit from the World Cup schedule and that sets up very well for our 2 Sunnyvale hotels.

Our Mountain View residents in was under renovation for the last 2 months of 2025 and we will remain under Renault through March of this year.

And of course, we remain very constructive on the valley and mountain view. Particularly, of course, is anchored by Google waymo LinkedIn into it. And several other firms that certainly provide a good steady source of demand for that hotel. Sunnyvale is quickly, rebounding from the post-pandemic Slumber, sunny

down 9% in uh in the third quarter and we did a great job replacing that business or some of it in the fourth, whether par only down 1%

Jeff: We'll continue to feel some impacts, you know, in Q1 of this year as to that account. As the year progresses, our comps will get better, we'll benefit from World Cup schedule, and that sets up very well for our two Sunnyvale hotels. Of course, we remain very constructive on the Valley and Mountain View, particularly, of course, is anchored by Google, Waymo, LinkedIn, Intuit, and several other firms that certainly provide a good, steady source of demand for that hotel. Sunnyvale is quickly rebounding from the post-pandemic slumber. Sunnyvale's office market is rebounding faster than any other Silicon Valley market and had 1.4 million square feet of positive absorption last year.

Jeff Fisher: We'll continue to feel some impacts, you know, in Q1 of this year as to that account. As the year progresses, our comps will get better, we'll benefit from World Cup schedule, and that sets up very well for our two Sunnyvale hotels. Of course, we remain very constructive on the Valley and Mountain View, particularly, of course, is anchored by Google, Waymo, LinkedIn, Intuit, and several other firms that certainly provide a good, steady source of demand for that hotel. Sunnyvale is quickly rebounding from the post-pandemic slumber. Sunnyvale's office market is rebounding faster than any other Silicon Valley market and had 1.4 million square feet of positive absorption last year.

Sales office Market is rebounding faster than any other Silicon Valley Market, and had 1.4 million square feet of positive absorption last year.

We'll continue to feel some impacts, you know, in the first quarter of this year as to that account, but as the year progresses our comps will get better and we will benefit from the World Cup schedule, and that sets up very well for our two Sunnyvale hotels.

And in 2025, Apple increased its square footage by over a million feet and Linkedin added to its campuses and applied intuition which is a 15 billion dollar software company for self-driving cars, moved into Sunnyvale.

Jeff: In 2025, Apple increased its square footage by over 1 million feet, LinkedIn added to its campuses, and Applied Intuition, which is a $15 billion software company for self-driving cars, moved into Sunnyvale. Of course, our largest client, Applied Materials, is building a $4 billion chip facility that's only a block or 2 away from our 2 Sunnyvale hotels. We certainly look forward to continued better times over the next few years in the Valley. With that, I'd like to turn it over to Dennis.

Jeff Fisher: In 2025, Apple increased its square footage by over 1 million feet, LinkedIn added to its campuses, and Applied Intuition, which is a $15 billion software company for self-driving cars, moved into Sunnyvale. Of course, our largest client, Applied Materials, is building a $4 billion chip facility that's only a block or 2 away from our 2 Sunnyvale hotels. We certainly look forward to continued better times over the next few years in the Valley. With that, I'd like to turn it over to Dennis.

And of course, we remain very constructive on the valley and mountain view. Particularly, of course, is anchored, by Google way, Mo LinkedIn into it. And several other firms, that certainly provide a good steady source of demand for that hotel. Sunnyvale is quickly rebounding from the post-pandemic Slumber. Sunny veils office Market is rebounding faster than any other Silicon Valley Market and had 1.4 million square feet of positive absorption last year.

And of course, our largest client Applied Materials, is building a 4 billion dollar chip facility. That's only a block or 2 away from our 2 Sunnyvale hotels. So we certainly look forward to continued better times over the next few years. In the valley with that, I'd like to turn it over to Dennis. Thanks Jeff. Good morning, everyone, some additional rough par information occupancy at our 4 Silicon, Valley hotels with 72% and ADR was up to 2 and a half percent 2 and a half percent in the quarter, despite that shift in business. That Jeff talked about in Sunnyvale from the third and fourth quarters, our 6 Prudential.

And that in 2025, Apple increased its square footage by over a million feet and Linkedin added to its campuses and applied intuition which is a 15 billion dollar software company for self-driving cars, moved into Sunnyvale.

And the shutdown's impact on our 3 DC area hotels, accounted for about 60% of our quarterly roof part decline.

Dennis: Thanks, Jeff. Good morning, everyone. Some additional RevPAR information. Occupancy at our four Silicon Valley hotels was 72%, and ADR was up 2.5%, 2.5% in the quarter, despite that shift in business that Jeff talked about in Sunnyvale from Q3 and Q4. Our six predominantly leisure hotels, which account for approximately 20% of our EBITDA, produced RevPAR growth of 50 basis points in the quarter. The shutdowns impact on our three DC area hotels accounted for about 60% of our quarterly RevPAR decline. Some more color on our larger markets, California, which is home to two more of our top eight markets, in addition to Silicon Valley, Los Angeles, and San Diego.

Dennis Craven: Thanks, Jeff. Good morning, everyone. Some additional RevPAR information. Occupancy at our four Silicon Valley hotels was 72%, and ADR was up 2.5%, 2.5% in the quarter, despite that shift in business that Jeff talked about in Sunnyvale from Q3 and Q4. Our six predominantly leisure hotels, which account for approximately 20% of our EBITDA, produced RevPAR growth of 50 basis points in the quarter. The shutdowns impact on our three DC area hotels accounted for about 60% of our quarterly RevPAR decline. Some more color on our larger markets, California, which is home to two more of our top eight markets, in addition to Silicon Valley, Los Angeles, and San Diego.

Some more color on our larger markets California, which is home to 2 of our 2 more of our top 8 markets, in addition to Silicon Valley, Los Angeles and San Diego San Diego. Rough, part declined, 8% in 2025 as the market retracted from, an all-time best convention calendar in 2024, additionally demand slipped due to the opening of the nearby Gaylord as well as the shutdown of the border which reduced our government business at our hotel.

And of course, our largest client, Applied Materials, is building a $4 billion chip facility. That's only a block or two away from our two Sunnyvale hotels. So we certainly look forward to continued better times over the next few years in the Valley. With that, I'd like to turn it over to Dennis. Thanks, Jeff. Good morning, everyone. Some additional rough PAR information—occupancy at our four Silicon Valley hotels was 72%. And ADR was up two and a half percent, two and a half percent in the quarter, despite that shift in business that Jeff talked about in Sunnyvale from the third and fourth quarters.

The 2026 convention calendar sets up, similarly to 2025 with 43 conventions in 26, versus 46 in 25.

Our 6 Prudential.

In Le Reve, part of 3 hotels is up, 4% in 2025, due in part to the significant fire related business. We received especially at our Woodland Hills home to which benefited basically from January through the early parts of May.

Then obviously in the LA area for the balance of the year, it was generally softer of 2025 due to the general unrest in the LA area.

Dennis: San Diego RevPAR declined 8% in 2025, as the market retracted from an all-time best convention calendar in 2024. Additionally, demand slipped due to the opening of the nearby Gaylord, as well as the shutdown of the border, which reduced our government business at our hotel. The 2026 convention calendar sets up similarly to 2025, with 43 conventions in 2026 versus 46 in 2025. In LA, RevPAR at our 3 hotels is up 4% in 2025, due in part to the significant fire-related business we received, especially at our Woodland Hills Home2, which benefited basically from January through the early parts of May. Now, obviously, in the LA area, for the balance of the year, it was generally softer of 2025 due to the general unrest in the LA area.

Dennis Craven: San Diego RevPAR declined 8% in 2025, as the market retracted from an all-time best convention calendar in 2024. Additionally, demand slipped due to the opening of the nearby Gaylord, as well as the shutdown of the border, which reduced our government business at our hotel. The 2026 convention calendar sets up similarly to 2025, with 43 conventions in 2026 versus 46 in 2025. In LA, RevPAR at our 3 hotels is up 4% in 2025, due in part to the significant fire-related business we received, especially at our Woodland Hills Home2, which benefited basically from January through the early parts of May. Now, obviously, in the LA area, for the balance of the year, it was generally softer of 2025 due to the general unrest in the LA area.

Hopefully that also settles down in 2026 and similar to Sunnyvale. We should benefit from World Cup demand. Given the proximity of our Marina Del Rey and Anaheim hotels to the stadium in LA,

In other large markets, our Coastal Northeast, Northeast hotels.

Some more color on our larger markets: California, which is home to two of our top eight markets in addition to Silicon Valley, Los Angeles, and San Diego. San Diego, in particular, declined 8% in 2025 as the market retracted from an all-time best convention calendar in 2024. Additionally, demand slipped due to the opening of the nearby Gaylord, as well as the shutdown of the border, which reduced our government business at our hotel.

Have better 2026 comps due to renovation impacts in 25 and our DC area hotels, have much easier to comps after January due to all the shutdown related businesses or pauses in 2025.

The 2026 convention calendar sets up, similarly to 2025 with 43 conventions in 26, versus 46 in 25.

Our Belleview residents, in also should continue to benefit from increasing corporate demand.

Dennis: Hopefully, that also settles down in 2026, and similar to Sunnyvale, we should benefit from World Cup demand, given the proximity of our Marina del Rey and Anaheim hotels to the stadium in LA. In other large markets, our coastal Northeast hotels have better 2026 comps due to renovation impacts in 2025, and our DC area hotels have much easier comps after January due to all the shutdown-related businesses or pauses in 2025. Our Bellevue Residence Inn also should continue to benefit from increasing corporate demand. In Texas, all three markets have felt the impact of convention demand falloff, with Dallas and Austin's convention centers under renovation and expansion, while San Antonio just didn't have a great convention calendar in 2025.

Dennis Craven: Hopefully, that also settles down in 2026, and similar to Sunnyvale, we should benefit from World Cup demand, given the proximity of our Marina del Rey and Anaheim hotels to the stadium in LA. In other large markets, our coastal Northeast hotels have better 2026 comps due to renovation impacts in 2025, and our DC area hotels have much easier comps after January due to all the shutdown-related businesses or pauses in 2025. Our Bellevue Residence Inn also should continue to benefit from increasing corporate demand. In Texas, all three markets have felt the impact of convention demand falloff, with Dallas and Austin's convention centers under renovation and expansion, while San Antonio just didn't have a great convention calendar in 2025.

Then obviously in the LA area for the balance of the year, it was generally softer of 2025 due to the general unrest in the LA area.

Hopefully that also settles down in 2026 and similar to Sunnyvale. We should benefit from World Cup demand. Given the proximity of our Marina Del Rey and Anaheim hotels to the stadium in LA,

Will have tough convention comps through the first quarter. But we will see demand from the World Cup in the second and third quarters. As Dallas not only hosts 9 games, which is the most of any City, but the nearby cave belly, Bailey Convention, Center will host up to 5,000 media media professionals as it's serving as the international broadcast center for the World Cup.

And other large markets are coastal Northeast, Northeast hotels.

have better 2026 comps due to renovation impacts in 25 and our DC area hotels, have much easier to comps after January due to all the shutdown related businesses are pauses in 2025,

And then in a very encouraging development for our 2, Austin hotels at the Domain, a plan 3 billion, MD Anderson Hospital and Recent research center. That was previously expected to be built. Downtown, is now expected to be built at the Domain with groundbreaking starting in 2026.

Our Belleview residents, in also should continue to benefit from increasing corporate demand.

Dennis: Dallas will have tough convention comps through the Q1, we will see demand from the World Cup in the Q2 and Q3, as Dallas not only hosts 9 games, which is the most of any city, but the nearby Kay Bailey Convention Center will host up to 5,000 media professionals as it's serving as the International Broadcast Center for the World Cup. In a very encouraging development for our two Austin hotels at The Domain, a planned $3 billion MD Anderson Hospital and Research Center that was previously expected to be built downtown, is now expected to be built at The Domain, with groundbreaking starting in 2026. Outside of our top markets, at our Home2 in Phoenix, as a reminder, it opened in 2024, and we acquired the hotel in May 2024.

Dennis Craven: Dallas will have tough convention comps through the Q1, we will see demand from the World Cup in the Q2 and Q3, as Dallas not only hosts 9 games, which is the most of any city, but the nearby Kay Bailey Convention Center will host up to 5,000 media professionals as it's serving as the International Broadcast Center for the World Cup. In a very encouraging development for our two Austin hotels at The Domain, a planned $3 billion MD Anderson Hospital and Research Center that was previously expected to be built downtown, is now expected to be built at The Domain, with groundbreaking starting in 2026. Outside of our top markets, at our Home2 in Phoenix, as a reminder, it opened in 2024, and we acquired the hotel in May 2024.

In Texas, all 3 markets, have felt the impact of calm con convention, demand fall off with Dallas and Austin's convention centers under renovation and expansion. While San Antonio just didn't have a great convention calendar in 2025,

Outside of our top markets at our home to, in Phoenix as a reminder, it opened in 2024 and we acquired the hotel in May of 2024 ref. Par was up approximately 17% in the quarter, as we continue to gain market. Share, as we've been able to partner with the nearby baseball stadium, the arena and the convention center to participate in business blocks that were, you know, generally reserved for, in advance of the state dates.

Dallas will have tough convention comps through the first quarter. But we will see demand from the World Cup in the second and third quarters. As Dallas not only hosts 9 games, which is the most of any city, but the nearby Kay Bailey Hutchison Convention Center will host up to 5,000 media professionals, as it's serving as the international broadcast center for the World Cup.

Charleston and Savannah continue to grow due to Rising corporate demand in South Carolina, and in Savannah, uh, coming out of a, a really great renovation. Uh, it's really done well with getting additional corporate demand and Leisure demand to the hotel.

That was previously expected to be built. Downtown, is now expected to be built at the Domain with groundbreaking starting in 2026.

Our top 5 ref, par hotels in the quarter, where our residents in White Plains, with ref par of 200 dollars. Our resident in Fort Lauderdale at 186 and residents. In New Rochelle New York at 185 dollars followed by our residents in Anaheim and our Hampton. Inn Portland with ref par of 166 dollars.

Dennis: RevPAR was up approximately 17% in the quarter as we continued to gain market share, as we've been able to partner with the nearby baseball stadium, the arena, and the convention center to participate in business blocks that were, you know, generally reserved far in advance of the stay dates. Charleston and Savannah continue to grow due to rising corporate demand in South Carolina, and in Savannah, coming out of a really great renovation, it's really done well with getting additional corporate demand and leisure demand to the hotel.

Dennis Craven: RevPAR was up approximately 17% in the quarter as we continued to gain market share, as we've been able to partner with the nearby baseball stadium, the arena, and the convention center to participate in business blocks that were, you know, generally reserved far in advance of the stay dates. Charleston and Savannah continue to grow due to rising corporate demand in South Carolina, and in Savannah, coming out of a really great renovation, it's really done well with getting additional corporate demand and leisure demand to the hotel.

For 2025, our top rough, par hotels, where the Hampton Inn Portland with revpar over $200. And of course, that's great news for our pending development, followed by our Hilton Garden. Inn Marina Del Rey residents in White Plains, Fort Lauderdale and San Diego, Gas Lamp. All 5 with ref par over 185 dollars.

Outside of our top markets at our home to, in Phoenix as a reminder, it opened in 2024 and we acquired the hotel in May of 2024 ref. Par was up approximately 17% of the quarter, as we continue to gain market. Share, as we've been able to partner with the nearby baseball stadium, the arena and the convention center to participate in business blocks that were, you know, generally reserved for, in advance of the state dates.

Charleston and Savannah continue to grow due to rising corporate demand in South Carolina, and in Savannah, uh, coming out of a really great renovation. Uh, it's really done well with getting additional corporate demand and leisure demand to the hotel.

Dennis: Our top five RevPAR hotels in the quarter were our Residence Inn, White Plains, with RevPAR of $200, our Residence Inn, Fort Lauderdale, at $186, and Residence Inn, New Rochelle, New York, at $185, followed by our Residence Inn, Anaheim, and our Hampton Inn, Portland, with RevPAR of $166. For 2025, our top RevPAR hotels were the Hampton Inn, Portland, with RevPAR over $200, of course, that's great news for our pending development, followed by our Hilton Garden Inn, Marina del Rey, Residence Inns in White Plains, Fort Lauderdale, and San Diego Gaslamp, all five with RevPAR over $185. As Jeff remarked in his opening comments, we were pleased with our ability to mitigate our margin loss throughout 2025.

Dennis Craven: Our top five RevPAR hotels in the quarter were our Residence Inn, White Plains, with RevPAR of $200, our Residence Inn, Fort Lauderdale, at $186, and Residence Inn, New Rochelle, New York, at $185, followed by our Residence Inn, Anaheim, and our Hampton Inn, Portland, with RevPAR of $166. For 2025, our top RevPAR hotels were the Hampton Inn, Portland, with RevPAR over $200, of course, that's great news for our pending development, followed by our Hilton Garden Inn, Marina del Rey, Residence Inns in White Plains, Fort Lauderdale, and San Diego Gaslamp, all five with RevPAR over $185. As Jeff remarked in his opening comments, we were pleased with our ability to mitigate our margin loss throughout 2025.

As Jeff remarked in his opening comments. We were pleased with our ability to to mitigate our margin loss throughout 2025 during the fourth quarter, our GOP, margins, only declined, 30 basis points. Despite revpar declining almost 2%. We were able to hold the year-over-year increase in labor and benefit benefit costs to just under 2% in the quarter and which was primarily the primary D driver behind limiting the decline and in that Department's profit to only 1%

Our top 5, rough, part hotels, in the quarter, where our residents in White Plains, with ref par of $200. Our resident in Fort Lauderdale at 186 and residents in New Rochelle New York at 185 dollars followed by our residents in Anaheim and our Hampton. Inn Portland with ref par of 166 dollars.

most other operating line, items are relatively stable year-over-year with non departmental expenses flat at approximately 21 million dollars. And the only other major and item to note was that guest acquisition related commission costs were down a couple hundred thousand dollars in Aid at our margins by approximately 20 bips

For 2025, our top rough part hotels were the Hampton Inn Portland, with RevPAR over $200. And of course, that's great news for our pending development. Followed by our Hilton Garden Inn Marina Del Rey, Residence Inn White Plains, Fort Lauderdale, and San Diego Gaslamp. All five with RevPAR over $185.

Our hotel Ava Don margins benefited from some 1-time property tax refunds and they actually grew 70 basis points in the quarter.

Dennis: During the Q4, our GOP margins only declined 30 basis points, despite RevPAR declining almost 2%. We were able to hold the year-over-year increase in labor and benefit costs to just under 2% in the quarter, and which was the primary driver behind limiting the decline in that department's profit to only 1%. Most other operating line items were relatively stable year-over-year, with non-departmental expenses flat at approximately $21 million. The only other major item to note was that guest acquisition-related commission costs were down a couple $100,000 and aided our margins by approximately 20 basis points. Our hotel EBITDA margins benefited from some one-time property tax refunds, and then they actually grew 70 basis points in the quarter.

Dennis Craven: During the Q4, our GOP margins only declined 30 basis points, despite RevPAR declining almost 2%. We were able to hold the year-over-year increase in labor and benefit costs to just under 2% in the quarter, and which was the primary driver behind limiting the decline in that department's profit to only 1%. Most other operating line items were relatively stable year-over-year, with non-departmental expenses flat at approximately $21 million. The only other major item to note was that guest acquisition-related commission costs were down a couple $100,000 and aided our margins by approximately 20 basis points. Our hotel EBITDA margins benefited from some one-time property tax refunds, and then they actually grew 70 basis points in the quarter.

Property insurance was down, 3% in the quarter in great news. On our renewal is that those premiums are projected to decline. A further, 15% on the same store basis in 2026.

For the year, our GOP margin decline was limited to a mere 40 basis points, labor and benefits only increased 1.2% on a part per occupied room basis, um, in the quarter and actually declined slightly from last year to 2025,

As Jeff remarked in his opening comments. We were pleased with our ability to to mitigate our margin loss throughout 2025 during the fourth quarter, our GOP, margins, only decline, 30 basis points, despite revpar declining almost 2%. We were able to hold the year-over-year increase in labor and benefit benefit costs to just under 2% in the quarter and which was primarily the primary D driver behind limiting the decline and in that Department's profit to only 1%

For the 33 comparable hotels, our headcount decreased 13% from a year ago.

Most other operating line, items are relatively stable year-over-year with non- departmental expenses, flat at approximately 21 million dollars. And the only other major item to note was that guest acquisition related commission costs were down a couple hundred thousand dollars in Aid at our margins by approximately 20 Pips.

For the quarter, our top 5 producers of GOP were all residents in. In fact, the top 7 were all residents in, but leading the way was residents in gas, lamp with 1.6 million, followed by our residents in and Anaheim both Sunny veils and White Plains.

Dennis: Property insurance was down 3% in the quarter. Great news on our renewal is that those premiums are projected to decline a further 15% on a same-store basis in 2026. For the year, our GOP margin decline was limited to a mere 40 basis points. Labor and benefits only increased 1.2% on a per occupied room basis in the quarter, and actually declined slightly from last year to 2025. For the 33 comparable hotels, our headcount decreased 13% from a year ago. For the quarter, our top 5 producers of GOP were all Residence Inns. In fact, the top 7 were all Residence Inns, but leading the way was Residence Inn Gaslamp, with $1.6 million, followed by our Residence Inns in Anaheim, both Sunnyvales, and White Plains.

Dennis Craven: Property insurance was down 3% in the quarter. Great news on our renewal is that those premiums are projected to decline a further 15% on a same-store basis in 2026. For the year, our GOP margin decline was limited to a mere 40 basis points. Labor and benefits only increased 1.2% on a per occupied room basis in the quarter, and actually declined slightly from last year to 2025. For the 33 comparable hotels, our headcount decreased 13% from a year ago. For the quarter, our top 5 producers of GOP were all Residence Inns. In fact, the top 7 were all Residence Inns, but leading the way was Residence Inn Gaslamp, with $1.6 million, followed by our Residence Inns in Anaheim, both Sunnyvales, and White Plains.

Our hotel ibadan margins benefited from some 1-time property tax refunds and they actually grew 70 basis points in the quarter.

Property insurance was down, 3% in the quarter in great news. On our renewal is that those premiums are projected to decline. A further, 15% on the same store basis in 2026.

For the year, our gas lamp residents in led. The way, followed by our residents in silly number 2, Sunnyvale number 2, and Bellevue hotels and then rounding out the top 5 where our Embassy streets Springfield. Despite all of the government shutdown, impacts and threats. And lastly, our other Sunny Bay, Sunny bail Hotel.

So, just to point out, despite a volatile last 2 quarters in Sunnyvale, the fact that both both of those hotels as well as our Belleview residents in were in our top 5 of GOP. Producers in the year is pretty encouraging from a corporate demand standpoint

For the 33 compromise. Our head count decreased 13% from a year ago.

Dennis: For the year, our Gaslamp Residence Inn led the way, followed by our Residence Inn, Sunnyvale Silicon Valley II, Sunnyvale number two, and Bellevue Hotels. Rounding out the top 5 were our Embassy Suites by Hilton Springfield, despite all of the government shutdown impacts and threats, and lastly, our other Sunnyvale Hotel. Just to point out, despite a volatile last 2 quarters in Sunnyvale, the fact that both of those hotels, as well as our Bellevue Residence Inn, were in our top 5 of GOP producers in the year, is pretty encouraging from a corporate demand standpoint. On the CapEx front, we spent approximately $4 million in the quarter. During the quarter, we had commenced renovations at our Residence Inn in Austin and Mountain View, California, and those will be wrapping up, as Jeff talked about shortly.

Dennis Craven: For the year, our Gaslamp Residence Inn led the way, followed by our Residence Inn, Sunnyvale Silicon Valley II, Sunnyvale number two, and Bellevue Hotels. Rounding out the top 5 were our Embassy Suites by Hilton Springfield, despite all of the government shutdown impacts and threats, and lastly, our other Sunnyvale Hotel. Just to point out, despite a volatile last 2 quarters in Sunnyvale, the fact that both of those hotels, as well as our Bellevue Residence Inn, were in our top 5 of GOP producers in the year, is pretty encouraging from a corporate demand standpoint. On the CapEx front, we spent approximately $4 million in the quarter. During the quarter, we had commenced renovations at our Residence Inn in Austin and Mountain View, California, and those will be wrapping up, as Jeff talked about shortly.

For the quarter, our top five producers of GOP were all Residence Inns. In fact, the top seven were all Residence Inns, but leading the way was Residence Inn Gaslamp with $1.6 million, followed by our Residence Inns in Anaheim, both Sunnyvale, and White Plains.

on the capex front, we spend approximately dollars in the quarter and during the quarter we had commenced Renovations at our residents and in Austin and Mountain View California. And those will be wrapping up as Jeff talked about shortly. Our capex budget for 26, uh, for 2026 is approximately 26 million.

For the year, our gas lamp residents in led. The way, followed by our residents in silly number 2, Sunnyvale number 2, and Bellevue hotels. And then rounding out the top 5 where our Embassy Suites Springfield, despite all of the government shutdown, impacts and threats. And lastly, our other Sunny Bay Sunnyvale Hotel.

26 or our gas lamp residents in our high Place Pittsburgh and our Homewood Suites Farmington. All 3 scheduled to commence in the fourth quarter.

So, just to point out, despite a volatile last two quarters in Sunnyvale, the fact that both of those hotels, as well as our Belleview residence, were in our top five of GOP producers in the year is pretty encouraging from a corporate demand standpoint.

Dennis: Our CapEx budget for 2026 is approximately $26 million. That basically the same as 2025 and includes 3 renovations at a cost of approximately $17 million. The 3 hotels scheduled for renovation in 2026 are our Gaslamp Residence Inn, our Hyatt Place, Pittsburgh, and our Homewood Suites, Farmington, all 3 scheduled to commence in Q4. Lastly, when you look at our guidance, I want you to note the projected performance of our top markets. Silicon Valley RevPAR is projected up 3% to 5% in 2026, with increasing business travel demand, as well as a favorable World Cup schedule, as nearby Levi's Stadium is hosting 6 games. Los Angeles is down 1% to 3%, again, primarily due to the tough comps caused by the LA wildfire demand in our hotels in 2025.

Dennis Craven: Our CapEx budget for 2026 is approximately $26 million. That basically the same as 2025 and includes 3 renovations at a cost of approximately $17 million. The 3 hotels scheduled for renovation in 2026 are our Gaslamp Residence Inn, our Hyatt Place, Pittsburgh, and our Homewood Suites, Farmington, all 3 scheduled to commence in Q4. Lastly, when you look at our guidance, I want you to note the projected performance of our top markets. Silicon Valley RevPAR is projected up 3% to 5% in 2026, with increasing business travel demand, as well as a favorable World Cup schedule, as nearby Levi's Stadium is hosting 6 games. Los Angeles is down 1% to 3%, again, primarily due to the tough comps caused by the LA wildfire demand in our hotels in 2025.

On the CapEx front, we spent approximately $4 million in the quarter, and during the quarter we had commenced renovations at our Residence Inns in Austin and Mountain View, California. And those will be wrapping up, as Jeff talked about, shortly. Our CapEx budget for 2026 is approximately $26 million.

Lastly, when you look at our guidance, I want to note the projected performance of our top markets. Silicon Valley revpar is projected Up 3 to 5% in 2026 with increasing business travel demand as well as a favorable World Cup schedule as nearby. Levi Stadium is hosting 6 games. Los Angeles is down. 1 to 3% again, primarily due to the tough comps caused by the LA Wildfire demand in our hotels, in 2025 our Coastal Northeast portfolio is projected to be up uh or between flat to up 2% with our greater New York hotels. Uh, essentially projected to finish flat for 2026 and in DC, we're projected up 2, to 4% as we lap over all the shutdown effects.

That basically the same as 2025 and includes 3 renovation, the 3 Hotel scheduled for innovation in 2026 or our gas lamp residents in our high Place Pittsburgh and our Homewood Suites Farmington, all 3 scheduled to commence in the fourth quarter.

San Diego is projected to be down slightly again. Due to the decline in conventions, from 46 to 43 in Dallas, is projected to be down mid single digits due to the loss, business related to the convention center expansion and renovation that's ongoing. And lastly of our top markets Belleview is expected to grow mid to Upper single digits and it laps over renovation comps, but also increase business travel demand and a little bit of World Cup as well.

Jeremy.

Dennis: Our Coastal Northeast portfolio is projected to be up, or between flat to up 2%, with our Greater New York hotels essentially projected to finish flat for 2026. In DC, we're projected up 2% to 4% as we lap over all the shutdown effects. San Diego is projected to be down slightly, again, due to the decline in conventions from 46 to 43. Dallas is projected to be down mid-single digits due to the lost business related to the convention center expansion and renovation that's ongoing. Lastly, of our top markets, Bellevue is expected to grow mid to upper single digits as it laps over renovation comps, but also increased business travel demand and a little bit of World Cup as well. Jeremy?

Dennis Craven: Our Coastal Northeast portfolio is projected to be up, or between flat to up 2%, with our Greater New York hotels essentially projected to finish flat for 2026. In DC, we're projected up 2% to 4% as we lap over all the shutdown effects. San Diego is projected to be down slightly, again, due to the decline in conventions from 46 to 43. Dallas is projected to be down mid-single digits due to the lost business related to the convention center expansion and renovation that's ongoing. Lastly, of our top markets, Bellevue is expected to grow mid to upper single digits as it laps over renovation comps, but also increased business travel demand and a little bit of World Cup as well. Jeremy?

% again primarily due to the tough comps caused by the LA Wildfire demand in our hotels in 2025.

Thanks, Dennis. Good morning everyone. Our Q4, uh, 2025 Hotel, IBA was 22.4 million. Adjusted ebit da was 20.2 million and adjusted FFA with 21 cents per share. We were able to generate a GOP margin of 40.2% in hotel IBA, margin of 33.2% in Q4

Our Coastal Northeast portfolio is projected to be up, uh, or between flat to up 2%, with our Greater New York hotels, uh, essentially projected to finish flat for 2026. And in D.C., we're projected up 2 to 4% as we lap over all the shutdown effects.

GOP. Margins, for the quarter were only down 30 basis points from Q4 2024, despite the 1.8%, Rev part decline in the in the quarter due to outstanding expense control and stabilizing inflationary increases and hotel. Ebit down margins increased by 70 basis points due to 550,000 of property tax refunds in the quarter.

San Diego is projected to be down slightly again. Due to the decline in conventions, from 46 to 43 in Dallas, is projected to be down mid single digits due to the Lost business related to the convention center, expansion, and renovation that's ongoing. And lastly of our top markets Belleview is expected to grow mid to Upper single digits as it laps over renovation comps, but also increase business travel demand and a little bit of World Cup as well.

Jeremy: Thanks, Dennis. Good morning, everyone. Our Q4 2025 hotel EBITDA was $22.4 million. Adjusted EBITDA was $20.2 million. Adjusted FFO was $0.21 per share. We were able to generate a GOP margin of 40.2% and hotel EBITDA margin of 33.2% in Q4. GOP margins for the quarter were only down 30 basis points from Q4 2024, despite the 1.8% RevPAR decline in the quarter, due to outstanding expense control and stabilizing inflationary increases. Hotel EBITDA margins increased by 70 basis points, due to $550,000 of property tax refunds in the quarter.

Dennis Craven: Thanks, Dennis. Good morning, everyone. Our Q4 2025 hotel EBITDA was $22.4 million. Adjusted EBITDA was $20.2 million. Adjusted FFO was $0.21 per share. We were able to generate a GOP margin of 40.2% and hotel EBITDA margin of 33.2% in Q4. GOP margins for the quarter were only down 30 basis points from Q4 2024, despite the 1.8% RevPAR decline in the quarter, due to outstanding expense control and stabilizing inflationary increases. Hotel EBITDA margins increased by 70 basis points, due to $550,000 of property tax refunds in the quarter.

Jeremy.

In late December chadam, closed the sale of the home with Billerica, for 17.4 million and over the course of 2025. Chadam completed 4 asset sales for a total of 71.4 million.

These assets sales together with the successful refinancing and upsizing of chadam revolving credit facility and Term Loan in late September. Have helped Chad and achieved this lowest ever, leverage, level and highest ever level of liquidity.

at a GOP, margin of 40.2% and hotel, EBA margin of 33.2% in Q4

Chadam, strong balance sheet, puts the company in an excellent position to continue actively to repurchasing shares and to grow opportunistically through a creative acquisitions.

Jeremy: In late December, Chatham closed the sale of the Homewood Billerica for $17.4 million, and over the course of 2025, Chatham completed four asset sales for a total of $71.4 million. These asset sales, together with the successful refinancing and upsizing of Chatham's revolving credit facility and term loan in late September, have helped Chatham achieve its lowest ever leverage level and highest ever level of liquidity. Chatham's strong balance sheet puts the company in an excellent position to continue actively to repurchasing shares and to grow opportunistically through accretive acquisitions. Turning to our 2026 guidance, we expect RevPAR of -0.5% to +1.5%, adjusted EBITDA of $84 to 89 million, and adjusted FFO per share of $1.04 to $1.14 for the full year.

Dennis Craven: In late December, Chatham closed the sale of the Homewood Billerica for $17.4 million, and over the course of 2025, Chatham completed four asset sales for a total of $71.4 million. These asset sales, together with the successful refinancing and upsizing of Chatham's revolving credit facility and term loan in late September, have helped Chatham achieve its lowest ever leverage level and highest ever level of liquidity. Chatham's strong balance sheet puts the company in an excellent position to continue actively to repurchasing shares and to grow opportunistically through accretive acquisitions. Turning to our 2026 guidance, we expect RevPAR of -0.5% to +1.5%, adjusted EBITDA of $84 to 89 million, and adjusted FFO per share of $1.04 to $1.14 for the full year.

GOP margins for the quarter were only down 30 basis points from Q4 2024, despite the 1.8% RevPAR decline in the quarter, due to outstanding expense control and stabilizing inflationary increases in hotel expenses. EBITDA margins increased by 70 basis points due to $550,000 of property tax refunds in the quarter.

Turning to our 2026 guidance. We expect revpar of minus 0.5% to plus 1.5% adjusted. EBA of 84 to 89 million and adjusted ffo per share of a dollar and 4 cents to a dollar and 14 cents for the full year. This guidance, reflects our decision to exclude non-cash stock based compensation. Expense from our adjusted ffo effective, January 1st 2026, so that our presentation is comparable to how the majority

In late December chadam, closed the sale of the home with Billerica, for 17.4 million and over the course of 2025. Chadam completed 4 asset sales for a total of 71.4 million.

of lodging rate, peers report this measure

These asset sales, together with the successful refinancing and upsizing of Chatham’s revolving credit facility and term loan in late September, have helped Chatham achieve its lowest ever leverage level and highest ever level of liquidity.

Our guidance reflects the sales of the Homewood Bill uh Homewood Brentwood, Courtyard Houston Hampton Houston and home where Bill Rica which closed in 2025 and collectively. Contributed 2.1 million to chadam 2025 Eva.

Chatham’s strong balance sheet puts the company in an excellent position to continue actively repurchasing shares and to grow opportunistically through accretive acquisitions.

You should also note the chatam 2025, EBA and ffo included approximately 2.6 million or 5 cents per share of 1-time benefits from property tax. Refunds workers compensation refunds and payroll tax refunds which are not expected to repeat in 2026.

Jeremy: This guidance reflects our decision to exclude non-cash stock-based compensation expense from our adjusted FFO, effective 1 January 2026, that our presentation is comparable to how the majority of lodging REIT peers report this measure. Our guidance reflects the sales of the Homewood Brentwood, Courtyard Houston, Hampton Houston, and Homewood Billerica, which closed in 2025 and collectively contributed $2.1 million to Chatham's 2025 EBITDA. You should also note that Chatham's 2025 EBITDA and FFO included approximately $2.6 million, or $0.05 per share, of one-time benefits from property tax refunds, workers' compensation refunds, and payroll tax refunds, which are not expected to repeat in 2026. Reflecting the asset sales completed in 2025, our 2025 RevPAR-...

Dennis Craven: This guidance reflects our decision to exclude non-cash stock-based compensation expense from our adjusted FFO, effective 1 January 2026, that our presentation is comparable to how the majority of lodging REIT peers report this measure. Our guidance reflects the sales of the Homewood Brentwood, Courtyard Houston, Hampton Houston, and Homewood Billerica, which closed in 2025 and collectively contributed $2.1 million to Chatham's 2025 EBITDA. You should also note that Chatham's 2025 EBITDA and FFO included approximately $2.6 million, or $0.05 per share, of one-time benefits from property tax refunds, workers' compensation refunds, and payroll tax refunds, which are not expected to repeat in 2026. Reflecting the asset sales completed in 2025, our 2025 RevPAR-...

Turning to our 2026 guidance. We expect rev part of minus 0.5% to plus 1.5% adjusted. EBA of 84 to 89 million and adjusted ffo per share of a dollar and 4 cents to a dollar and 14 cents for the full year.

Reflecting the asset sales completed in 2025. Our 2025 revpar would have been $130 in q1 156 in Q2 154, in Q3 131 in Q4 and 142 for the full year.

This guidance reflects our decision to exclude non-cash stock-based compensation expense from our adjusted FFO, effective January 1, 2026, so that our presentation is comparable to how the majority—

of lodging rate, peers report this measure

Our guidance reflects the sales of the Homewood Bill uh Homewood Brentwood, Courtyard, Houston Hampton Houston and homeware, Bill Rica which closed in 2025 and collectively. Contributed 2.1 million to chadam is 2025 IBA.

In 2025, our revpar, increased 4.4% in q1 before declining 0.4% in Q2 0.9% in Q3 and 1.8% in Q4. So year-over-year comparisons will generally be challenging and q1 2026 before getting easier over the rest of the year.

Uh, we generally expect that Chad's q1 2026, rev power will decline low single digits, and then be positive for the rest of the year.

You should also note that the chadam 2025 IBA and fso included approximately 2.6 million or 5 cents per share of 1-time benefits from property tax. Refunds workers compensation refunds and payroll tax refunds which are not expected to repeat in 2026.

Jeremy: would have been $130 in Q1, $156 in Q2, $154 in Q3, $131 in Q4, and $142 for the full year. In 2025, our RevPAR increased 4.4% in Q1, before declining 0.4% in Q2, 0.9% in Q3, and 1.8% in Q4. Year-over-year comparisons will generally be challenging in Q1 2026, before getting easier over the rest of the year. We generally expect that Chatham's Q1 2026 RevPAR will decline low single digits and then be positive for the rest of the year.

Dennis Craven: would have been $130 in Q1, $156 in Q2, $154 in Q3, $131 in Q4, and $142 for the full year. In 2025, our RevPAR increased 4.4% in Q1, before declining 0.4% in Q2, 0.9% in Q3, and 1.8% in Q4. Year-over-year comparisons will generally be challenging in Q1 2026, before getting easier over the rest of the year. We generally expect that Chatham's Q1 2026 RevPAR will decline low single digits and then be positive for the rest of the year.

Reflecting the asset sales completed in 2025, RevPAR would have been $130 in Q1, $156 in Q2, $154 in Q3, $131 in Q4, and $142 for the full year.

Well, our guidance does not reflect any share repurchases or Acquisitions. Our plan is to continue repurchasing shares and over time to reinvest as a sale proceeds into a creative acquisitions.

This concludes my portion of the call operator, please open the line for questions.

Thank you, ladies and gentlemen.

In 2025, our RevPAR increased 4.4% in Q1 before declining 0.4% in Q2, 0.9% in Q3, and 1.8% in Q4. So year-over-year comparisons will generally be challenging in Q1 2026 before getting easier over the rest of the year.

Jeremy: Note that our capital structure includes $200 million of floating rate debt, and our guidance assumes that SOFR will decline based on the current forward curve, which reflects the assumption of rate cuts in 2026. Our guidance assumes quarterly interest expense will decline over the course of 2026. While our guidance does not reflect any share repurchases or acquisitions, our plan is to continue repurchasing shares and over time, to reinvest asset sale proceeds into accretive acquisitions. This concludes my portion of the call. Operator, please open the line for questions.

Uh, we generally expect that chadam, q1 2026, rev power will decline low single digits, and then be positive for the rest of the year.

Dennis Craven: Note that our capital structure includes $200 million of floating rate debt, and our guidance assumes that SOFR will decline based on the current forward curve, which reflects the assumption of rate cuts in 2026. Our guidance assumes quarterly interest expense will decline over the course of 2026. While our guidance does not reflect any share repurchases or acquisitions, our plan is to continue repurchasing shares and over time, to reinvest asset sale proceeds into accretive acquisitions. This concludes my portion of the call. Operator, please open the line for questions.

Please press the star followed by the 1 and a touchdown phone. Should you wish to cancel your request? Please press the star followed by the 2 if you're using a speaker-phone. Please. Lift the handset. Before pressing any Keys once again, that is star 1. Should you wish to ask a question?

Your first question is from gaurav Mehta from Alliance Global Partners, your line is set open.

Also note that our capital structure includes $100 million of floating rate debt, and our guidance assumes that SOFR will decline based on the current forward curve, which reflects the assumption of rate cuts in 2026. So our guidance assumes quarterly interest expense will decline over the course of 2026.

Yeah, thank you. Good morning. I I wanted to, uh, ask you on some of the dispositions that you have made in 25 years, do you think there's room to sell any more Assets in 26?

Well, our guidance does not reflect any share repurchases or acquisitions. Our plan is to continue repurchasing shares and, over time, to reinvest the sale proceeds into accretive acquisitions.

This concludes my portion of the call operator, please open the line for questions.

Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the star followed by the 1 on a touch-tone phone. Should you wish to cancel your request, please press the star followed by the 2. If you're using a speakerphone, please lift the handset before pressing any keys. Once again, that is star 1 should you wish to ask a question. Your first question is from Gaurav Mehta from Alliance Global Partners. Your line is now open.

Hey GV, this is Dennis nice to talk to you. Listen I think uh you know we probably have 1 or 2 more that will opportunistically look at selling. Um but uh you know I think certainly the the half a dozen hotels, we've sold over the last 18 months or so. Um kind of, you know, did a good bit of trimming so we'll always look to do a couple here and there but with the purpose of certainly reinvesting those dollars.

Thank you, ladies and gentlemen, we will now begin the question and answer session. Should you have a question please? Press the star followed by the 1 on the touchdown phone? Should you wish to cancel your request? Please press the star followed by the 2 if you're using a speaker-phone. Please. Lift the handset. Before pressing any Keys once again, that is star 1. Should you wish to ask a question?

Gaurav Mehta: Yeah, thank you. Good morning. I wanted to ask you on some of the dispositions that you have made in 2025. As you look into your portfolio, do you think there's room to sell any more assets in 2026?

Your first question is from gaurav Mehta from Alliance Global Partners, your line is set open.

Okay, and maybe on the I guess acquisition side, I think in the Preparatory model that you said maybe there's some some improvement in the pricing and and just wondering if you could maybe provide some more color on I guess, you know, deploying some of the disposition proceeds from last year and maybe taking leverage up back to historical levels.

Yeah, thank you. Good morning. I wanted to ask you on some other dispositions that you have made in '25, uh, room to sell any more assets in '26?

Dennis: Hey, Gaurav, this is Dennis. Nice to talk to you. Listen, I think, you know, we probably have 1 or 2 more that we'll opportunistically look at selling. I think certainly the half a dozen hotels we've sold over the last 18 months or so, kind of, you know, did a good bit of trimming. We'll always look to do a couple here and there, but with the purpose of certainly reinvesting those $.

Gaurav Mehta: Hey, Gaurav, this is Dennis. Nice to talk to you. Listen, I think, you know, we probably have 1 or 2 more that we'll opportunistically look at selling. I think certainly the half a dozen hotels we've sold over the last 18 months or so, kind of, you know, did a good bit of trimming. We'll always look to do a couple here and there, but with the purpose of certainly reinvesting those $.

Yeah, this is Jeff hike. We're a, certainly we're comfortable since we've been at this for a long time with leverage levels, you know that we've had

From 2010, for example, to 2020. Uh, so yes uh we are you know, we have been digging in here and and doubling down on our efforts. I think generally what we're seeing in the market

since revpar is flattened out.

Hey gu this is Dennis nice to talk to you. Listen I think uh you know we probably have 1 or 2 more that will opportunistically look at selling. Um but uh you know I think certainly the the half a dozen hotels, we've sold over the last 18 months or so. Um, kind of, you know, did a good bit of trimming so we'll always look to do a couple here and there but with the purpose of certainly reinvesting those dollars.

Gaurav Mehta: Okay. Maybe on the, I guess, acquisition side, I think in the prepared remarks, you said maybe there's some improvement in the pricing. Just wondering if you could maybe provide some more color on, I guess, you know, deploying some of the disposition proceeds from last year and maybe taking leverage back to historical levels.

Jeremy: Yeah, this is Jeff. Hi, Gaurav. Certainly, we're comfortable, since we've been at this for a long time, with leverage levels, you know, that we've had from 2010, for example, to 2020. Yes, you know, we have been digging in here and doubling down on our efforts. I think, generally, what we're seeing in the market, since RevPAR has flattened out, and this always seems to be the case, sellers seem to get a little bit more realistic about, you know, what their hotel may or may not really be worth, and have a little more incentive, I think, to transact if they've got, you know, flat RevPAR and, you know, an EBITDA going down a little bit, such as, you know, occurred during 2025.

Gaurav Mehta: Yeah, this is Jeff. Hi, Gaurav. Certainly, we're comfortable, since we've been at this for a long time, with leverage levels, you know, that we've had from 2010, for example, to 2020. Yes, you know, we have been digging in here and doubling down on our efforts. I think, generally, what we're seeing in the market, since RevPAR has flattened out, and this always seems to be the case, sellers seem to get a little bit more realistic about, you know, what their hotel may or may not really be worth, and have a little more incentive, I think, to transact if they've got, you know, flat RevPAR and, you know, an EBITDA going down a little bit, such as, you know, occurred during 2025.

Yeah, this is Jeff. Hike, we're up. Certainly, we're comfortable since we've been at this for a long time with leverage levels, you know, that we've had.

And this it always seems to be the case sellers seem to get a little bit more. Realistic about, you know what their hotel may or may not really be worth uh and have a little more incentive I think to transact. If they've got, you know, flat, rev par and you know, an e bit of going down a little bit such as, you know, occurred during 2025 and uh, you know, the prospect by most companies in the category that we like, you know, as you know, is kind of a flattish rift part Outlook. Uh,

Again, we think for, for, for us and maybe for others. That's a very conservative Outlook, but we're going to take advantage of that Outlook uh by owners as well and try to make a few deals.

From 2010, for example, to 2020. Uh, so yes uh we are you know, we have been digging in here and and doubling down on our efforts. I think generally what we're seeing in the market

since revpar is flattened out.

All right, great. Uh, thanks for those details. Uh, maybe on, I guess the expense and margin side. Would you expect to see some pressures in 26? I think on the weight side is it seems like it's coming down to Mid single digits, maybe outside of wages, other expense line items.

Jeremy: You know, the prospect by most companies in the category that we like, you know, as you know, is kind of a flattish RevPAR outlook. Again, we think for us and maybe for others, that's a very conservative outlook. We're going to take advantage of that outlook, by owners as well and try to make a few deals.

Gaurav Mehta: You know, the prospect by most companies in the category that we like, you know, as you know, is kind of a flattish RevPAR outlook. Again, we think for us and maybe for others, that's a very conservative outlook. We're going to take advantage of that outlook, by owners as well and try to make a few deals.

And this, it always seems to be the case, sellers seem to get a little bit more realistic about, you know, what their hotel may or may not really be worth, uh, and have a little more incentive, I think, to transact. If they've got, you know, flat RevPAR and, you know, even better, going down a little bit such as, you know, occurred during 2025 and, uh, you know, the prospect by most companies in the category that we like.

Yeah, I mean, listen, I think especially early in 2026 utilities have a little bit of pressure on them, just because of the, the cold storms that have hit, whether it was the Central and Southeast last month and now, uh, earlier this month. But also now you have the ortho Northeast. So I think you're probably all of us will have a little bit of utility pressures here in the first quarter. Um, but really outside of that gov. I mean, I think it's it's really how much you can control the Labor, uh, on an inflation. You know, wage increase basis. So um, really everything else is fairly stable um, from an operating expense standpoint.

You know, as you know, is kind of a flattish REV part Outlook. Uh, again we think for for for us and maybe for others. That's a very conservative Outlook, but we're going to take advantage of that Outlook uh by owners as well and try to make a few deals.

Gaurav Mehta: All right, great. Thanks for those details. Maybe on, I guess, the expense and margin side, where do you expect to see some pressures in 2026? I think on the wage side, it seems like it's coming down to mid-single digits, maybe outside of wages, other expense line items.

All right, thank you. That's all I have.

Thank you.

Thank you, your next question is from Eric Klein from BML. Capital markets in your line is now open.

All right, but uh, thanks for those details. Uh, maybe on, I guess the expense and margin side. Would you expect to see some pressures in 26? I think on the weight side is it seems like it's coming down to my single digits, maybe outside of wages, other expense line items.

Dennis: Yeah, I mean, listen, I think especially early in 2026, utilities have a little bit of pressure on them just because of the cold storms that have hit, whether it was the central and southeast last month and now, earlier this month, but also now you have the Northeast. I think you probably, all of us will have a little bit of utility pressures here in Q1. Really outside of that, Gaurav, I mean, I think it's really how much you can control the labor on an inflation, you know, wage increase basis. Really everything else is fairly stable from an operating expense standpoint.

Gaurav Mehta: Yeah, I mean, listen, I think especially early in 2026, utilities have a little bit of pressure on them just because of the cold storms that have hit, whether it was the central and southeast last month and now, earlier this month, but also now you have the Northeast. I think you probably, all of us will have a little bit of utility pressures here in Q1. Really outside of that, Gaurav, I mean, I think it's really how much you can control the labor on an inflation, you know, wage increase basis. Really everything else is fairly stable from an operating expense standpoint.

Uh thanks and good morning. May I just following up on the expense side, you've had a lot of success there and you've um, you know, generated some some real productivity improvements, just curious how much, how much room you think is left on that that front.

Um, you know, and the ability to kind of, you know, keep a lid on on cost. Just from from the productivity improvements.

Yeah, I mean, listen, I think especially early in 2026 utilities have a little bit of pressure on them, just because of the, the cold storms that have hit, whether it was the Central and Southeast last month and now, uh, earlier this month. But also now you have the ourthe Northeast. So I think you're probably all of us will have a little bit of utility pressures here in the first quarter, um, but really outside of that gov. I mean, I think it's it's really how much you can control the Labor, uh, on an inflation. You know, wage increase basis. So um, really everything else is fairly stable um, from an operating expense standpoint.

Gaurav Mehta: All right, thank you. That's all I had.

Dennis: Thank you.

Gaurav Mehta: Thank you.

All right, thank you. That's all I had.

Thank you.

Operator: Thank you. Your next question is from Ari Klein from BMO Capital Markets. Your line is now open.

Thank you, your next question is from Eric Klein from BML. Capital markets in your line is now open.

Ari Klein: Thanks, and good morning. Maybe just following up on the expense side. You've had a lot of success there, and you've, you know, generated some real productivity improvements. Just curious, how much room you think is left on that front, and the ability to kind of, you know, keep a lid on costs just from those productivity improvements?

Uh, thanks and good morning. May I just follow up on the expense side? You've had a lot of success there and you've, um, you know, generated some real productivity improvements. Just curious how much, how much room you think is left on that front.

Um, you know, on the ability to kind of, you know, keep a lid on on cost. Just from from those productivity improvements.

Dennis: Hey, Ari. I mean, listen, I think we'd certainly love to say there's always more, but, you know, I think as I talked about in my prepared remarks, our headcount is down about 13% year-over-year. Both Chatham and Island are spending a lot of time, literally adjusting models every day based on, you know, trends, and it was very volatile in 2025. I think, you know, given the fact that we're hopeful that, you know, as Jeff talked about, with wage increases kind of averaging right at 2% from the first half of the year to the last half of 2025, you know, that we haven't seen anything that has changed that over the first almost two months of 2026. You know, for us, it's all about controlling wages and headcount.

Ari Klein: Hey, Ari. I mean, listen, I think we'd certainly love to say there's always more, but, you know, I think as I talked about in my prepared remarks, our headcount is down about 13% year-over-year. Both Chatham and Island are spending a lot of time, literally adjusting models every day based on, you know, trends, and it was very volatile in 2025. I think, you know, given the fact that we're hopeful that, you know, as Jeff talked about, with wage increases kind of averaging right at 2% from the first half of the year to the last half of 2025, you know, that we haven't seen anything that has changed that over the first almost two months of 2026. You know, for us, it's all about controlling wages and headcount.

Chadam and I owner spending a lot of time, literally adjusting models every day based on, you know, Trends and it was very volatile in 2025. So I think, you know, given the fact that we're hopeful that, you know, as Jeff talked about with wage increases kind of averaging right at 2% from the first half of the year to the last half of 2025. You know, that we haven't seen anything that, uh, has changed that over the first almost 2 months of 2026. So, you know, for us it's all about controlling wages and and headcount and, you know, we're going to continue to do that throughout the year. Uh, and hopefully, that helps, you know, us, uh, do a little bit better down the road. Yeah, I mean, the focus there is is, is it is not trying to continue to find cuts that probably don't exist but it is to flow, you know, if it's a nominal revpar, increase its to flow that money to the GOP and to the bottom line. And I think we

Have proven.

Yeah, that that island has been pretty successful in doing that. So really, that's for this year, if we get some upside, we want to see that flowing right to the bottom line, uh, you know, to enhance those returns for everybody.

Dennis: you know, we're gonna continue to do that throughout the year, and hopefully, that helps, you know, us, do a little bit better down the road.

Ari Klein: you know, we're gonna continue to do that throughout the year, and hopefully, that helps, you know, us, do a little bit better down the road.

Jeff: Yeah, I mean, the focus there is not trying to continue to find cuts that probably don't exist.

Ari Klein: Yeah, I mean, the focus there is not trying to continue to find cuts that probably don't exist.

Hey Ari. Uh, I mean listen, I think we'd love to say, there's always more but, you know, I think as I talked about in my prepared remarks, our headcounts down about 13% year-over-year both chadam and I own are spending a lot of time, literally adjusting models every day based on, you know, Trends and it was very volatile in 2025. So I think, you know, given the fact that we're hopeful that, you know, as Jeff talked about with wage increases kind of averaging right at 2% from the first half of the year to the last half of 2025. You know, that we haven't seen anything that, uh, has changed that over the first almost 2 months of 2026. So, you know, for us it's all about controlling wages and and headcount and, you know, we're going to continue to do that throughout the year. Uh, and hopefully that helps, you know us uh, do a little bit better down the road.

Dennis: Yeah.

Ari Klein: Yeah.

Jeff: It is to flow, you know, if it's a nominal RevPAR increase, it's to flow that money to the GOP and to the bottom line. I think we have proven, you know, that Island has been pretty successful in doing that. Really, that's for this year. If we get some upside, we want to see that flowing right to the bottom line, you know, to enhance those returns for everybody.

Ari Klein: It is to flow, you know, if it's a nominal RevPAR increase, it's to flow that money to the GOP and to the bottom line. I think we have proven, you know, that Island has been pretty successful in doing that. Really, that's for this year. If we get some upside, we want to see that flowing right to the bottom line, you know, to enhance those returns for everybody.

Thank you, that color and and then maybe just a couple of quicker ones, you have a lot of detail on your Market, a lot of expectations for 2026 curious. Just, you know, overall, the the impact from, from the World Cup in your expectations around that given, given that you, you do have a number of, uh, markets that seemed well positioned there and then just on the main Portland, Maine development. Um, just the costs associated with that, and I, I don't believe that's included with capex, just wanted to confirm that.

Yeah, I mean, the focus there is isn't is not trying to continue to find cuts that probably don't exist but it is to flow the, you know, if it's a nominal revpar increase its to flow that money to the GOP and to the bottom line. And I think we have proven

You know, that island has been pretty successful in doing that. So really, that's for this year, if we get some upside, we want to see that flowing right to the bottom line, uh, you know, to enhance those returns for everybody.

Ari Klein: Thanks. Appreciate that color. Then maybe just a couple of quicker ones. You gave a lot of detail on your market level expectations for 2026. Curious, just, you know, overall, the impact from the World Cup and your expectations around that, given that you do have a number of markets that seem well positioned there. Then just on the main-- Portland, Maine development, just the cost associated with that. I don't believe that's included with CapEx. Just wanted to confirm that.

Velopment, um, just the costs associated with that and I I don't believe that's included with capex, just wanted to confirm that.

Dennis: Yep. Yeah. I'll start with Portland. The cost is not included in our CapEx number. We'll come out with official guidance on that, probably at our next earnings call, Ari, with respect to dollars, and especially the timing of the flow of those dollars over the project to make sure everybody correctly. With respect to the World Cup, I mean, listen, I think we've... You know, certainly, when you look at it by market, we're gonna be fairly conservative at the outset. Just to give you a specific example, you know, the International Broadcast Center at the Kay Bailey Hutchison Convention Center Dallas, you know, just within the last few months, we had a smaller group that basically canceled for the hotel.

Ari Klein: Yep. Yeah. I'll start with Portland. The cost is not included in our CapEx number. We'll come out with official guidance on that, probably at our next earnings call, Ari, with respect to dollars, and especially the timing of the flow of those dollars over the project to make sure everybody correctly. With respect to the World Cup, I mean, listen, I think we've... You know, certainly, when you look at it by market, we're gonna be fairly conservative at the outset. Just to give you a specific example, you know, the International Broadcast Center at the Kay Bailey Hutchison Convention Center Dallas, you know, just within the last few months, we had a smaller group that basically canceled for the hotel.

Yep. Uh yeah. So I'll start with Portland. The cost is not included in our capex number, we'll come out with official guidance on that, probably at our next earnings call, all right. Um with respect to Dollars and especially the timing of the the flow of those dollars over the project to make sure everybody uh at least has a modeled correctly. Um and then with respect to the World Cup. I mean listen I think we've you know certainly um when you look at it by market, we're going to be fairly conservative at the outset. And just to give you an a specific example, you know, the international broadcast Center in in in at the K. Bailey Convention Center in Dallas. Uh, you know, just within the last few months we had a smaller group that basically canceled, uh, for the hotel. Um, I think you've probably, you know, you hear that, you know, in some locations there's, you know, concerns about demand and tickets and who's coming in and everything like that. So, you know, yes. It's going to be very good for the markets in general, but at least where we

Sit here. Today we're going to be, you know, we're still going to be a little bit conservative about how that ultimately translates because there is still, you know, some uncertainty over demand related to events in certain cities whether that's, you know, L A Seattle, and even at the even in Dallas. So,

all right. Thank you.

Thank you. Thank you once again please. Press star. 1 should you wish to ask a question? And your next question is from Tyler battery from open armer Carolina, so open

Dennis: I think you've probably, you know, you hear that, you know, in some locations there's, you know, concerns about demand and tickets and who's coming in and everything like that. Yes, you know, it's gonna be very good for the markets in general, but at least where we sit here today, we're gonna be, you know, we're still gonna be a little bit conservative about how that ultimately translates, because there is still, you know, some uncertainty over demand related to events in certain cities, whether that's, you know, LA, Seattle, and even in Dallas.

Ari Klein: I think you've probably, you know, you hear that, you know, in some locations there's, you know, concerns about demand and tickets and who's coming in and everything like that. Yes, you know, it's gonna be very good for the markets in general, but at least where we sit here today, we're gonna be, you know, we're still gonna be a little bit conservative about how that ultimately translates, because there is still, you know, some uncertainty over demand related to events in certain cities, whether that's, you know, LA, Seattle, and even in Dallas.

Uh, good morning, thanks for taking my questions. Um, just wanted to expand

Yep. Uh yeah. So I'll start with Portland. The cost is not included in our capex number, we'll come out with official guidance on that, probably at our next earnings call, all right. Um with respect to Dollars and especially the timing of the the flow of those dollars over the project to make sure everybody correctly. Um and then with respect to the World Cup. I mean listen I think we've you know certainly um when you look at it by market we're going to be fairly conservative at the outset and just to give you an a specific example, you know, the international broadcast Center in in in at the K. Bailey Convention Center in Dallas. Uh, you know, just within the last few months we had a smaller group that basically cancelled, uh, for the hotel. Um, I think you probably, you know, you hear that, you know, in some locations there's, you know, concerns about demand and tickets and who's coming in and everything like that. So, you know, yes. It's going to be very good for the markets in general, but at least where we sit here today, we're going to be, you know, we're still going to be a little bit.

On the revpar guide, a little bit and you get some details on on, on markets and whatnot. But, um, just really trying to get a good sense on, on the Cadence that we should expect for, for the year. Um, and I think you said down both single digits in q1, then, and then up the rest of the year. Um, I mean, how much of that is, is just the comps, um, you know, maybe, you know, remind us, um, you know, some companies specific building blocks this year, um, that are contributing to the, to the growth. Um, you know, in the last 3 quarters of the year compared with the first quarter,

conservative about how that ultimately translates because there is still, you know, some uncertainty over demand related to events in certain cities whether that's, you know, L A Seattle and even at the even in Dallas, so,

Ari Klein: All right. Thank you.

All right. Thank you.

Dennis: Thank you.

Ari Klein: Thank you.

Operator: Thank you. Once again, please press star one should you wish to ask a question. Your next question is from Tyler Batory from Oppenheimer & Co. Inc. Your line is now open.

Thank you. Thank you once again. Please press star, 1 should you wish to ask a question. And your next question is from Tyler Battery from Open Armer. Your line is now open.

Tyler Batory: Good morning. Thanks for taking my questions. Just wanted to expand on the RevPAR guide a little bit, and you gave some details on markets and whatnot. Just really trying to get a good sense on the cadence that we should expect for the year. I think you said down low single digits in Q1, then up the rest of the year. I mean, how much of that is just the comps? You know, maybe, you know, remind us, you know, some company-specific building blocks this year that are contributing to the growth, you know, in the last 3 quarters of the year compared with Q1.

Yeah. I mean I think you know, basically if you look at first quarter of this year, tough comps due to 1 inauguration last year and the wildfires. Um, and then for the last, the last 3 quarters of the year, you know, you're kind of looking at a 02 1 and a half rev par growth, um, for the balance of the last 3 quarters, a lot of that is

Good morning, and thank you for taking my questions. I just wanted to expand...

Dennis: Yeah, I mean, I think, you know, basically, if you look at Q1 this year, tough comps due to, one, inauguration last year and the wildfires. For the last three quarters of the year, you know, you're kind of looking at a zero to two-ish, one-and-a-half-ish RevPAR growth for the balance of the last three quarters. A lot of that is due to the effects of, you know, whether that was in DC with the 3 hotels, with all the shutdowns. You had a lot of uncertainty and unrest in LA that really pulled back some demand that, you know, I think should aid us this year. We have a couple of, like, one-time events. Obviously, Pittsburgh is hosting the NFL Draft in Q2 right outside the doors of our hotel.

Tyler Batory: Yeah, I mean, I think, you know, basically, if you look at Q1 this year, tough comps due to, one, inauguration last year and the wildfires. For the last three quarters of the year, you know, you're kind of looking at a zero to two-ish, one-and-a-half-ish RevPAR growth for the balance of the last three quarters. A lot of that is due to the effects of, you know, whether that was in DC with the 3 hotels, with all the shutdowns. You had a lot of uncertainty and unrest in LA that really pulled back some demand that, you know, I think should aid us this year. We have a couple of, like, one-time events. Obviously, Pittsburgh is hosting the NFL Draft in Q2 right outside the doors of our hotel.

On the revpar guide, a little bit and you get some details on on, on markets and whatnot. But, um, just really trying to get a good sense on, on the Cadence that we should expect for, for the year. Um, I think you said down both single digits in q1, then, and then up the rest of the year. Um, I mean, how much of that is, is just the comps, um, you know, maybe, you know, remind us, um, you know, some companies specific building blocks this year, um, that are contributing to the, to the growth. Um, you know, in the last 3 quarters of the year compared with the first quarter,

Much. But I think in general, you know, across some of our larger markets where, you know, there was some, some should be some easier comps. The last 3 quarters of the year,

Okay, great. Um, from a revenue management perspective, um, how are you thinking about the mix of occupancy, ADR in in 2026? And uh, how is that influencing, uh, your your margin expectations for the year?

Yeah. I mean, I think, you know, basically if you look at first quarter of this year, tough comps due to 1 inauguration last year and the wildfires. Um, and then for the last, the last 3 quarters of the year, you know, you're you're kind of looking at a zero to two 1 and a half rev par growth. Um, for the balance of the last 3 quarters, a lot of that is due to the effects of, you know, whether that was in DC with the 3DS, you had a lot of uncertainty and unrest, in La, um, that really pulled back some demand. Um, uh, that, uh, you know, I think should Aid us this year. Um, we have a couple of like 1-time events obviously pit pit.

Dennis: That's gonna be a, a plus in Q2. I think from a, you know, a summer perspective, if you look at it, we're trading off a Ryder Cup, out on Long Island with a US Open at Shinnecock, so that really shouldn't affect much. I think in general, you know, across some of our larger markets where, you know, there was some should be some easier comps the last 3 quarters of the year.

Tyler Batory: That's gonna be a, a plus in Q2. I think from a, you know, a summer perspective, if you look at it, we're trading off a Ryder Cup, out on Long Island with a US Open at Shinnecock, so that really shouldn't affect much. I think in general, you know, across some of our larger markets where, you know, there was some should be some easier comps the last 3 quarters of the year.

Yeah, I mean I think, you know, I think generally speaking it's mostly ADR growth for 2026. Um, I think it might be just a yeah, yeah, it's basically kind of flattish occupancy. So strictly ADR

Berg is hosting the NFL draft uh in the second quarter uh right outside the doors of our hotel. Um, so that's going to be a A plus in the second quarter. Uh, and I think from a, you know, a summer perspective, if you look at it, we're trading off a Ryder Cup, uh, out on Long Island with a us. I believe it's a US Open at Shinnok so, um, that really shouldn't affect much. But I think in general, you know, across some of our larger markets where, you know, there was some, some should be some easier comps. The last 3 quarters of the year,

Tyler Batory: Okay, great. From a revenue management perspective, how are you thinking about the mix of occupancy ADR in 2026, and how is that influencing your margin expectations for the year?

Okay, um, so Switching gears to technical allocation, um, even pretty active repurchasing shares. Um, you know, I would assume you still view the, the stock, as, as undervalued, um, given where computers are today. Um, how aggressively do you expect to deploy, uh, the rest of that of that authorization and just help us think about um, you know, balancing potential BuyBacks. Um with what you might do in terms of in terms of acquisitions

Okay, great. Um, from a revenue management perspective, um, I was thinking about the mix of occupancy, ADR in in 2026 and uh, how is that influencing, uh, your your margin expectations for the year?

Dennis: Yeah, I mean, I think, you know, I think generally speaking, it's mostly ADR growth for 2026. I think it might be just.

Tyler Batory: Yeah, I mean, I think, you know, I think generally speaking, it's mostly ADR growth for 2026. I think it might be just.

Jeff: Probably, yeah.

Tyler Batory: Probably, yeah.

Dennis: Yeah.

Tyler Batory: Yeah.

Jeff: It's really all, yeah.

Tyler Batory: It's really all, yeah.

Dennis: Yeah, it's basically kind of flattish occupancy. Strictly ADR.

Tyler Batory: Yeah, it's basically kind of flattish occupancy. Strictly ADR.

Yeah. I mean I think, you know, I think generally speaking it's mostly ADR growth for 2026. Um, I think it might be just a. Yeah, absolutely all, yeah.

Yeah, it's basically kind of flattish occupancy. So strictly ADR

Tyler Batory: Okay. Switching gears to capital allocation, you've been pretty active repurchasing shares. You know, I assume you still view that the stock is undervalued. Given where shares are today, how aggressively do you expect to deploy the rest of that authorization? Just help us think about, you know, balancing potential buybacks with what you might do in terms of acquisitions.

Okay, um, so Switching gears to technical allocation um, even pretty active. We purchasing shares. Um, you know, as soon as we still view the, the stock, as, as undervalued, um, given where computers are today, um, how aggressively do you expect to deploy, uh, the rest of that of that authorization and just help us think about um, you know, balancing potential BuyBacks. Um, with what you might do in terms of

In terms of acquisitions.

Dennis: Yeah. I think, Tyler, I'll start. I mean, I think with respect to the repurchase plan, you know, we intend to utilize most, if not all of it in 2025. If you look at kind of the portfolio and the free cash flow from 2025 and 2026 after CapEx and after dividends, you know, it's essentially we're using all of that over the last, you know, between those two years to utilize the entire repurchase, which we think is just a, you know, it's how it should be done, right? You're generating excess cash flow after dividends, and we believe we're undervalued there, and we're gonna buy it back. And I think, listen, from an external perspective, buying hotels, you know, as we've talked, we haven't really done.

Tyler Batory: Yeah. I think, Tyler, I'll start. I mean, I think with respect to the repurchase plan, you know, we intend to utilize most, if not all of it in 2025. If you look at kind of the portfolio and the free cash flow from 2025 and 2026 after CapEx and after dividends, you know, it's essentially we're using all of that over the last, you know, between those two years to utilize the entire repurchase, which we think is just a, you know, it's how it should be done, right? You're generating excess cash flow after dividends, and we believe we're undervalued there, and we're gonna buy it back. And I think, listen, from an external perspective, buying hotels, you know, as we've talked, we haven't really done.

Yeah, I think, Tyler all start. I mean, I think with respect to the repurchase plan, you know, we intend to utilize most if not all of it, uh, in 2025, um, if you look at kind of the portfolio and the free cash flow from 25 and 2026 after capex, and after dividends, um, you know, it's it's essentially we're using all of that over the last, you know, between those 2 years, uh, to utilize the entire repurchase, which we think is just a, you know, uh it's how it should be done, right? You generating excess cash flow after dividends and we believe we're undervalued there and we're going to buy buy it back so um, and I think listen for from an external perspective uh buying hotels, you know, as we've talked we haven't really done in the last hotel. We bought was Phoenix in May of 2024. So it's been almost 2 years. We've been very you know just patient and understanding not only from the financing and what Jeremy did with the balance sheet over the last couple years, that was a lot of work. Um but we're in a great position from a from a

From a debt cap from a debt perspective. Um, to hopefully do some deals and, of course, it's got to be at a, at a cap rate that makes makes money, especially in, you know, makes sense in light of where we're trading. Uh, but, you know, that's why we've been pretty patient. So we're hopeful to to, to be able to execute on that uh, a bit more here in 2026.

Okay. Um, that's all for me. Thank you for the detail.

Thank you, Tyler.

Thank you. There are no further questions at this time. Please proceed.

Dennis: The last hotel we bought was Phoenix in May 2024. It's been almost 2 years. We've been very, you know, just patient and understanding, not only from the financing and what Jeremy did with the balance sheet over the last couple of years. That was a lot of work. We're in a great position from a debt perspective to hopefully do some deals. Of course, it's got to be at a cap rate that makes money, especially, you know, makes sense in light of where we're trading. You know, that's why we've been pretty patient, so we're hopeful to be able to execute on that a bit more here in 2026.

Tyler Batory: The last hotel we bought was Phoenix in May 2024. It's been almost 2 years. We've been very, you know, just patient and understanding, not only from the financing and what Jeremy did with the balance sheet over the last couple of years. That was a lot of work. We're in a great position from a debt perspective to hopefully do some deals. Of course, it's got to be at a cap rate that makes money, especially, you know, makes sense in light of where we're trading. You know, that's why we've been pretty patient, so we're hopeful to be able to execute on that a bit more here in 2026.

I think we can wrap it up by saying thank you all for being on the call and being attentive, attentive, good questions. Uh, as I said, hopefully, there's guidance is conservative and we do have the benefit, uh, of some, you know, as Dennis explains some positive attributes for this year on the top line that should come to fruition and flow that, uh, to the bottom line is the focus. So we will look forward to talking to you for the next quarter. Thanks.

Done, right? You're you're generating excess cash flow after dividends and we believe we're undervalued there and we're going to buy buy it back. So, um, and I think, listen for from an external perspective, uh, buying hotels, you know, as we've talked, we haven't really done the last hotel. We bought was Phoenix in May of 2024. So it's been almost 2 years. We've been very, you know, just patient and understanding, not only from the financing. And what Jeremy did with the balance sheet over the last couple years, that was a lot of work. Um, but we're in a great position from a, from a, from a debt cap, from a debt perspective. Um, to hopefully do some deals and, of course, it's got to be at a, at a cap rate that makes makes money, especially in, you know, make sense in light of where we're trading. Uh, but, you know, that's why we've been pretty patient. So we're hopeful to to, to be able to execute on that uh, a bit more here in 2026.

Gaurav Mehta: Okay, that's all for me. Thank you for the detail.

Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may now disconnect your lines.

Dennis: Thank you, Tyler.

Gaurav Mehta: Thank you, Tyler.

Okay. Um that's all from me. Thank you for the details.

Thank you, Tyler.

Operator: Thank you. There are no further questions at this time. Please proceed.

Thank you. There are no further questions at this time. Please proceed.

Jeff: Well, I think we can wrap it up by saying thank you all for being on the call and being attentive. Good questions. As I said, hopefully, this guidance is conservative, and we do have the benefit of some, you know, as Dennis explained, some positive attributes for this year on the top line that should come to fruition and flow that to the bottom line is the focus. We will look forward to talking to you for the next quarter. Thanks.

Operator: Well, I think we can wrap it up by saying thank you all for being on the call and being attentive. Good questions. As I said, hopefully, this guidance is conservative, and we do have the benefit of some, you know, as Dennis explained, some positive attributes for this year on the top line that should come to fruition and flow that to the bottom line is the focus. We will look forward to talking to you for the next quarter. Thanks.

Well, I think we can wrap it up by saying thank you all for being on the call and being attentive good questions. Uh, as I said, hopefully there's guidance is conservative and we do have the benefits, uh, of some, you know, as Dennis explained. Some positive attributes for this year on the top line that should come to fruition and flow that uh,

To the bottom line is the focus. So we will look forward to talking to you for the next quarter. Thanks.

Operator: Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may now disconnect your lines.

Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may now disconnect your lines.

Q4 2025 Chatham Lodging Trust Earnings Call

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