Chatham Lodging Trust has reported a net income of $7.03m for the second quarter (Q2) of 2024, representing a 24.89% decrease from $9.36m in the same period a year earlier.

Net income attributable to the company for the recorded quarter amounts to $6.84m, a decrease from $9.14m in the same period last year.

The net income attributable to common shareholders in Q2 2024 is $4.86m and was $7.15m in Q2 2023.

The company experienced a surge in total revenues during the quarter ending 30 June 2024, with figures reaching $86.47m compared to $84.47m in the second quarter of 2023.

Total operating income in Q2 2024 is $14.09m, compared with $15.45m in Q2 2023.

Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter was $31.35m, showing a decrease from $31.85m in the previous year's corresponding quarter.

Total operating expenses saw an increase, amounting to $72.40m in Q2 2024, up from $69.07m in Q2 2023.

Chatham Lodging Trust's Portfolio Revenue Per Available Room (RevPAR) increased by about 4% to $151 compared to $145 in the second quarter of 2023 for the 38 comparable hotels.

The average daily rate (ADR) remained unchanged at $183, and occupancy rates jumped by 4% to 82% for the 38 hotels owned as of 30 June 2024.

In particular, RevPAR for the Silicon Valley and Bellevue hotels was up 10% over the second quarter of 2023, reaching a post-pandemic high of $152 for the second quarter.

In the first half (H1) of 2024, the company’s net income was $1.54m as against a net income of $4.32m in H1 2023. 

Total operating income in H1 2024 was $15.06m while it was $17.52m in H1 2023. 

Chatham president and CEO Jeffrey H Fisher said: “The second quarter was a great quarter for Chatham and our shareholders, posting impressive results for the quarter, with all key metrics finishing at the top of our guidance range and completing a multi-year transformation of our balance sheet that positions us strongly for future opportunities.

“We delivered adjusted FFO per share of $0.39, beating consensus estimates behind strong RevPAR growth of 4%, hotel EBITDA margins of 39% and again driving increased other department profits by approximately $0.4m or 16%.”

Earlier in the year, Chatham Lodging Trust announced the acquisition of the 148-room Home2 Suites by Hilton Phoenix Downtown for $43.3m.

The company anticipates that upon stabilisation, the acquisition will produce a RevPAR of over $150 and generate an estimated NOI yield of more than 9%.

During Q1 2024, the company reported a net loss of $5.48m.

The company’s total revenue in Q1 2024 was $68.44m, a 26.34% increase in Q2 2024.