Chatham Lodging Trust Reports Weaker 2025 Performance Amid Tourism Drop

Chatham Lodging Trust, a real estate investment trust (REIT) specializing in upscale, extended-stay hotels, has reported its third quarter results for 2025 and noted a slight dip in some of its performance metrics. The fall-off in foreign and domestic tourism, especially in large metropolitan markets, has negatively impacted some of the key performance indicators including wide area room revenue, RevPAR. Currently, the company has 34 hotels in the United States, mostly in the extended-stay segment of the market.

For the third quarter of 2025, working with the latest inflation-adjusted figures, the company recorded a dip of Double deflation RevPAR to the tune of Flags 2.5 percent. The RevPAR decline for a specific geo-region has tourism and convention recovery issues. Without a doubt, the Washington, DC area, which has suffered in the past, is starting to lose some of its RevPAR which is about 6 percent lower and suffered the indirect consequences of ultra-low government travel to a portion of the city’s hotels.

Weakened Tourism Impact on Key Markets

The third quarter results underscore a larger trend in the US lodging industry, with many cities experiencing diminished tourism levels. Areas such as Washington, DC, San Diego, Austin, and Dallas struggled due to various factors, including construction disruptions and a lack of corporate demand. Washington, DC’s tourism sector, which often benefits from government-related travel, suffered significantly. The reduced demand from government agencies ahead of potential shutdowns has led to lower occupancy rates and room prices, further impacting the hotel industry’s performance.

Meanwhile, Chatham Lodging’s largest markets, including Silicon Valley, Los Angeles, and San Diego, showed varied results, with Los Angeles seeing a decrease in RevPAR by 3 percent, and San Diego down by 10 percent. The decline in these core regions was also attributed to broader market trends affecting tourism and business travel, with several convention centres undergoing renovations, further dampening corporate travel prospects.

Stronger Performance in the Coastal Northeast and Greater New York Markets

Despite the challenges in major cities, some regions within Chatham’s portfolio reported more promising results. The Coastal Northeast, including markets like Portsmouth, experienced a 2 percent increase in RevPAR, driven by rising demand following significant hotel renovations. The Hampton Inn in Portland, part of the Coastal Northeast region, set an all-time quarterly high of 354 dollars in RevPAR. Additionally, Chatham’s Greater New York market posted an 8 percent increase in RevPAR, with particular gains coming from the Holtsville Residence Inn, which saw a 28 percent increase in room revenue, thanks to events such as the Ryder Cup.

Adjusted Financials Reflect Operational Efficiencies

Chatham Lodging also reported a drop in adjusted EBITDA to 26 million dollars for the third quarter of 2025, down from 30 million dollars in the same period of 2024. Despite the overall decline in revenue, the company was able to achieve adjusted FFO of 16 million dollars, only slightly down from the previous year’s 18 million dollars. This can be partly attributed to operational efficiencies, such as labour cost management and lower-than-expected property tax expenses.

The company’s strategy of focusing on extended-stay properties continues to provide some resilience in this challenging environment. Extended-stay hotels, which represent the highest share of Chatham’s hotel investments, performed relatively better in markets with stable, long-term demand. These properties have a unique ability to cater to both business and leisure travellers seeking longer stays.

Tourism Slowdown and Future Outlook

Chatham’s performance reflects the broader slowdown in the US tourism sector in 2025. Despite weak corporate travel and fluctuating leisure demand, the company remains committed to optimizing its operations and strategically managing its portfolio. Its financial flexibility was bolstered by a 500 million dollars credit facility secured earlier this year, which provides additional liquidity to navigate the fluctuating market conditions.

Looking ahead to the fourth quarter of 2025, the company has forecasted a decline in RevPAR of 3.5 percent to 2.5 percent as a result of continued softness in the tourism market, especially in major cities that depend on conventions and corporate travel. In particular, markets like Washington, DC are expected to continue facing challenges, with forecasts predicting a further dip in room rates and occupancy due to ongoing political uncertainty and government budget constraints.

Adapting to Changing Tourism Trends

Chatham Lodging Trust reports Q3 2025 results amidst a difficult travel climate with decreased demand across vital areas. Yet, the extended-stay portfolio continues to be a stabilizing influence, and the company’s renovation spending on hotel improvements does lend cautious optimism. Chatham will need to further retool its approach to profitability as evolving tourism continues to transform travel and travel-related business behavior as well as government business travel.

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UAE Joins Qatar, Saudi Arabia, Jordan, Oman, Kuwait, and More to Face Significant Drop in Tourism in Middle East for Nine Successive Months in 2025: Everything You Need to Know

In 2025, UAE, along with Qatar, Saudi Arabia, Jordan, Oman, Kuwait, and other countries, faces a significant drop in tourism in middle east due to global economic factors, shifting travel trends, and regional challenges. The tourism sector in these nations has been impacted by a variety of forces, including geopolitical tensions, economic slowdowns, and changing travel patterns. These countries, which have long relied on high-value tourists and business travel, are seeing a decline in both arrivals and tourism receipts. Despite these challenges, efforts to diversify tourism offerings, enhance infrastructure, and host international events are underway to boost recovery and attract visitors in the years ahead.

UAE: A Minor Dip in Arrivals, Major Drop in Tourism Spending

The UAE recorded a 0.1% decline in tourist arrivals YTD compared to the previous year, alongside a significant 9.7% decline in tourism receipts. While the decrease in arrivals is marginal, the sharp drop in tourism revenue points to a reduction in high-value tourists and longer stays. The UAE’s hospitality and tourism sector, which heavily depends on luxury tourism and business-related travel, has seen some setbacks due to the global economic climate, shifting travel preferences, and competition from emerging destinations. Despite this, the UAE continues to invest in large-scale projects like Expo 2020 Dubai and is working to rebound by offering innovative tourist experiences and increasing international marketing efforts.

Qatar: Growth in Visitors, but Tourism Receipts Take a Dive

Qatar experienced a 3.4% growth in tourist arrivals YTD; however, this was overshadowed by a 47.2% decline in tourism receipts over the previous year. Despite the increase in the number of visitors, the significant drop in revenue indicates a shift in visitor profiles, with fewer high-spending tourists or shorter stays. Qatar has been making efforts to diversify its tourism offering, particularly by investing in major events like the FIFA World Cup 2022 and promoting its cultural attractions. Nevertheless, the country faces challenges in sustaining high-value tourism, and the economic factors affecting global tourism are evident in the data.

Saudi Arabia: A Bumpy Road for Tourism with a 4.5% Decline

Saudi Arabia experienced a 4.5% decline in tourist arrivals YTD compared to the previous year. In addition, the country saw a 6.5% decline in tourism receipts YTD over the prior year. This decline is indicative of the challenges faced by the kingdom’s tourism sector in 2025. Despite the kingdom’s efforts to diversify its economy and attract more international visitors, factors such as geopolitical tensions, global economic slowdowns, and changes in travel patterns have impacted Saudi Arabia’s tourism industry. The country is working on enhancing its tourism infrastructure, focusing on projects like the Red Sea Project and hosting international events to recover and boost visitor numbers in the coming years.

Jordan: Struggling to Keep Pace with Tourism Declines

Jordan saw a 2.4% decline in tourist arrivals YTD and a 2.3% decline in tourism receipts compared to the previous year. This reduction can be attributed to factors such as regional instability, economic pressures, and changing global travel habits. Jordan’s tourism industry, which heavily depends on visitors to Petra, the Dead Sea, and other cultural heritage sites, faced challenges from fluctuating global demand. However, the Jordanian government has been focusing on diversifying its tourism offerings and improving infrastructure to attract more international visitors. The country is also looking at sustainable tourism practices to ensure a long-term recovery.

Oman: A Mixed Bag for Tourism with a Steady Revenue Impact

Oman saw a 6.7% decline in tourist arrivals YTD, though it managed to maintain a 0% change in tourism receipts compared to the previous year. While the country has not seen a further reduction in revenue, the drop in tourist numbers reflects broader regional trends, including the impacts of the global pandemic, fluctuating oil prices, and the economic recovery from past disruptions. Oman’s tourism sector continues to face challenges in attracting large international markets. However, the government remains focused on sustainable tourism initiatives and enhancing the country’s natural and cultural offerings, like the Al Hoota Cave and the coastal regions, to improve future performance.

Kuwait: A Steady Decline in Arrivals, But Receipts Hold Steady

Kuwait saw a 0.3% decline in tourist arrivals YTD, and no change in tourism receipts compared to the previous year. The country’s tourism sector faces slow growth, with the minor decline in arrivals reflecting broader regional and global economic conditions. The tourism sector in Kuwait remains reliant on regional tourism, with international visitors still accounting for a smaller share of overall arrivals. Efforts to diversify its economy and boost its tourism offerings through infrastructure development, such as the Kuwait National Museum and more extensive leisure offerings, are in the works. However, the impact of the pandemic and subsequent global recovery continues to affect its progress.

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UAE sees a 0.1% dip in arrivals, 9.7% drop in receipts. This decline is part of a broader trend, as the UAE, along with Qatar, Saudi Arabia, Jordan, Oman, and Kuwait, faces a significant drop in tourism in middle east for nine successive months in 2025 due to global economic factors and shifting travel trends.

Conclusion

UAE sees a 0.1% dip in arrivals, 9.7% drop in receipts, marking a significant decline in tourism in middle east. This trend, shared by Qatar, Saudi Arabia, Jordan, Oman, Kuwait, and more, highlights the challenges faced by these nations in 2025, driven by global economic factors and shifting travel patterns. Despite these setbacks, these countries are working to rebound by diversifying their tourism offerings, improving infrastructure, and hosting major international events to attract future visitors.

The post UAE Joins Qatar, Saudi Arabia, Jordan, Oman, Kuwait, and More to Face Significant Drop in Tourism in Middle East for Nine Successive Months in 2025: Everything You Need to Know appeared first on Travel And Tour World.