April and May RevPAR Trend Well Above Second Quarter Guidance

Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) focused on investing in upscale, extended-stay hotels and premium-branded, select-service hotels, today announced RevPAR grew a strong 5 percent quarter-to-date through May, well above its second quarter guidance of 2.5 to 4.0 percent. RevPAR gained 5 percent in both April and May.

Key RevPAR growth metrics (excluding the recently acquired Home2 Phoenix Downtown):

• April occupancy was up 6 percent to 83 percent with average daily rate (ADR) down 1 percent to $177
• May occupancy was up 4 percent to 82 percent, and ADR also increased 1 percent to $182
• RevPAR growth for the Silicon Valley and Bellevue hotels surged 11 percent through May driven by an approximate 6 percent advance in occupancy to 77 percent and a 6 percent rise in ADR to $188
• Other strong markets through May were Cherry Creek, Dallas, Greater New York, San Antonio and San Diego

“Driven by the resurgence in business travel around the country, 14 of our 38 comparable hotels generated double digit RevPAR growth through May, leading us to meaningfully outperform the industry and our peers,” highlighted Jeffrey H. Fisher, Chatham’s chief executive officer and president. “April and May weekday and weekend occupancies were the highest since 2019, and weekday and weekend portfolio ADR exceeded 2019 levels. As occupancies climb, rate growth should accelerate, and this is very encouraging as we enter our busiest time of the year.”

Capital Markets & Capital Structure

During the 2024 second quarter, the company:

• Repaid the Residence Inn Anaheim $29 million maturing mortgage on April 5^th
• Borrowed an additional $50 million on its term loan on May 3^rd
• Acquired on May 30^th the recently opened, 148-room Home2 Suites by Hilton Phoenix Downtown for $43 million or approximately $293,000 per room
• Issued $23 million of CMBS debt secured by the Hyatt Place Pittsburgh North Shore on May 31^st
• Repaid the Residence Inn Mountain View $35 million maturing mortgage on May 31^st
• Expects to issue approximately $37 million of CMBS debt during June

“Pro-forma for the above transactions, we project to have approximately $50 million of cash with nothing outstanding on our $260 million credit facility as of June 30^th and have only $189 million of maturing debt to repay in July,” commented Jeremy Wegner, Chatham’s chief financial officer. “After repaying the July maturing debt, we will have approximately $140 million outstanding on our credit facility and 29 hotels unencumbered. It’s important to have this debt overhang behind us as we have successfully repositioned our balance sheet and are at our lowest leverage levels since Chatham’s early years over a decade ago."

About Chatham Lodging Trust

Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns 39 hotels with 5,883 rooms/suites in 17 states and the District of Columbia. Additional information about Chatham may be found at chathamlodgingtrust.com.

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