Chatham Lodging Trust reported its financial results for the third quarter and the nine months ended September 30, 2024, showing modest revenue growth but a decline in profitability compared to the previous fiscal period. Total revenue for the three months ended September 30, 2024, was $87.2 million, a 0.5% increase from $86.7 million in the same period of 2023. For the nine months, total revenue rose to $242.1 million, up 1.4% from $238.8 million in 2023. The growth was primarily driven by a 2.1% increase in same property revenue per available room (RevPAR) and contributions from a newly acquired hotel, which added $1.8 million in revenue.
Despite the revenue increase, net income for the third quarter fell to $4.3 million, down from $7.5 million in 2023. For the nine months, net income decreased to $5.9 million from $11.8 million in the prior year. The decline in profitability was attributed to higher operating expenses, which rose to $74.7 million for the third quarter, compared to $72.9 million in 2023, and increased interest expenses, which surged by 20.6% to $8.3 million.
Chatham Lodging Trust's cash and cash equivalents decreased significantly to $19.3 million as of September 30, 2024, from $68.1 million at the end of 2023. The company reported total assets of $1.295 billion, down from $1.344 billion at year-end 2023. Total liabilities also decreased to $496.9 million from $539.6 million, with mortgage debt net dropping to $171.5 million from $394.5 million.
Strategically, the company made notable moves, including the acquisition of the Home2 Suites Phoenix Downtown for $43.3 million in May 2024 and the sale of the Hilton Garden Inn Denver Tech Center for $18 million in January 2024. The latter transaction resulted in a loss of $0.2 million but did not signify a strategic shift in operations.
Chatham Lodging Trust maintained its dividend at $0.21 per common share for the nine months ended September 30, 2024, consistent with the previous year. The company continues to focus on upscale extended-stay and premium-branded select-service hotels, managing a portfolio of 39 hotels across 17 states and the District of Columbia. As of September 30, 2024, the company had a leverage ratio of 24.3% and total debt of $438.5 million, with a weighted-average interest rate of approximately 6.8%.
About Chatham Lodging Trust
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