Chatham Lodging Trust is a Maryland real estate investment trust that was formed on October 26, 2009. The company elected to be taxed as a real estate investment trust for federal income tax purposes starting with its 2010 taxable year. It is internally managed and focuses its investments on upscale extended stay and premium branded select service hotels. The trust had no operations before completing its initial public offering in April 2010. Net proceeds from share offerings are contributed to Chatham Lodging L P the operating partnership in exchange for partnership interests. Substantially all of the company's assets are held by and all of its operations are conducted through the operating partnership. Chatham Lodging Trust serves as the sole general partner of the operating partnership and owns one hundred percent of the common units of limited partnership interest in that entity. Certain executive officers hold vested and unvested long term incentive plan units in the operating partnership which are shown as non controlling interests on the consolidated balance sheets. As of December 31 2025 the company owned thirty three hotels with a total of five thousand twenty one rooms located in fifteen states and the District of Columbia. The portfolio includes sixteen Residence Inn by Marriott hotels two Homewood Suites by Hilton hotels two Home2 Suites by Hilton hotels one TownePlace Suites by Marriott hotel three Courtyard by Marriott hotels two Hampton Inn or Hampton Inn and Suites by Hilton hotels three Hilton Garden Inn by Hilton hotels one SpringHill Suites by Marriott hotel two Hyatt Place hotels and one Embassy Suites hotel. This mix reflects a focus on extended stay brands while also maintaining exposure to select service brands across major urban markets.

Chatham Lodging Trust generates revenue primarily by leasing its owned hotels to taxable REIT subsidiary lessees under percentage lease agreements. Each lease provides for rental payments equal to the greater of a fixed base rent amount or a percentage of the hotel's room revenue. This structure allows the company to receive a stable base rent while also participating in upside when hotel performance improves. Lease revenue from each taxable REIT subsidiary lessee is eliminated in consolidation so the company's reported revenue reflects the net lease income after intercompany removal. In addition to lease income the company earns incidental income from interest on cash balances and from any ground lease payments it receives as lessee on certain properties. Management fees paid to third party hotel operators and franchise fees paid to brand licensors are recorded as operating expenses not as revenue. These expense items reduce net income but do not affect the top line lease revenue stream. Overall the company's revenue stream is driven by the performance of its hotels measured through room revenue occupancy and average daily rates. The company does not operate the hotels directly because REIT rules prohibit a real estate investment trust from managing lodging properties therefore the lease to a taxable REIT subsidiary is necessary to maintain compliance.

Chatham Lodging Trust operates within the upscale extended stay and premium branded select service segments of the lodging industry. The company competes with other hotel real estate investment trusts such as Host Hotels and Resorts Inc Apple Hospitality REIT Inc and Sunstone Hotel Investors Inc as well as private equity investors pension funds and hotel operating companies. Competitive advantages include a disciplined acquisition approach that targets prices below replacement cost in the twenty five largest metropolitan markets of the United States. The firm focuses on markets with strong demand generators and expects demand growth to outpace new supply. It also seeks properties that appear under managed or under capitalized and applies value added strategies such as re branding renovation expansion or management changes to enhance operating results. Proactive asset management involves working closely with third party hotel managers to maximize brand marketing programs develop effective sales policies control costs and improve guest satisfaction. The company maintains a prudent capital structure targeting a long term net debt to investment in hotels at cost ratio similar to historical levels which have ranged between the low twenty s and the low fifty s. At December 31 2025 the leverage ratio was approximately twenty point one percent down from twenty three point one percent at the end of 2024. The company believes its focus on extended stay and select service brands combined with its internal expertise provides a defensible position in a competitive lodging market. Additionally the flexibility to change hotel management companies when contracts expire broadens the pool of potential acquisition targets because many properties are encumbered by long term management agreements. This adaptability supports growth while preserving the ability to enforce performance standards through oversight and regular review of operational metrics.

The company's hotels serve primarily business travelers including those on short term trips extended assignments and corporate relocations. Leisure travelers also constitute a notable portion of demand especially in markets with tourist attractions or event venues. Typical guests value amenities such as complimentary breakfast high speed internet access in room movie channels limited meeting space linen and room cleaning service twenty four hour front desk guest grocery services and on site maintenance staff. Physical features include spacious suites quality construction full separate kitchens or wet bars with refrigerator and microwave quality furnishings pools and exercise facilities. The average length of stay for extended stay guests often exceeds five nights while select service guests typically stay one to three nights. This mix of stay durations helps stabilize occupancy across different seasons and economic cycles. Aggregate occupancy and average daily rates reflect the combined influence of these customer segments on the property level financial performance. The company monitors guest satisfaction scores and online review ratings to ensure that its properties meet the expectations of both business and leisure travelers.