Chatham Lodging Trust

Previous wording

At June 30, 2025, our leverage ratio was 21.1% measured as the ratio of our net debt (total debt outstanding before deferred financing costs less unrestricted cash and cash equivalents) to hotel investments at cost. Over the past several years, we have maintained a leverage ratio between the low 20s and the low 50s. As of June 30, 2025, we have total debt of $353.2 million at a weighted-average interest rate of approximately 6.46%.

Current wording

At September 30, 2025, our leverage ratio was 20.6% measured as the ratio of our net debt (total debt outstanding before deferred financing costs less unrestricted cash and cash equivalents) to hotel investments at cost. Over the past several years, we have maintained a leverage ratio between the low 20s and the low 50s. As of September 30, 2025, we have total debt of $343.2 million at a weighted-average interest rate of approximately 6.29%.

Previous wording

Smith Travel Research reported that U.S. lodging industry RevPAR decreased 0.5% for the three months ended June 30, 2025, with RevPAR down 0.1% in April 2025, up 0.1% in May 2025 and down 1.2% in June 2025. RevPAR growth slowed starting in March 2025 and we believe there is relatively limited visibility toward industry performance for the remainder of 2025.

Current wording

Smith Travel Research reported that U.S. lodging industry RevPAR decreased 1.4% for the three months ended September 30, 2025, with RevPAR down 1.1% in July 2025, down 1.0% in August 2025 and down 2.1% in September 2025. RevPAR growth slowed starting in March 2025 and we believe there is relatively limited visibility toward industry performance for the remainder of 2025.

Previous wording

Results of operations for the three months ended June 30, 2025 include the operating activities of the hotels we owned during the period. We sold one hotel located in Maitland, FL on December 6, 2024, sold one hotel located in Bloomington, MN on December 16, 2024, sold one hotel located in Brentwood, TN on January 30, 2025, sold one hotel located in Houston, TX on March 17, 2025, and sold one hotel located in Houston, TX on April 22, 2025. We acquired one hotel located in Phoenix, AZ on May 30, 2024. The changes in results described below were driven primarily by relatively flat RevPAR performance, the sales of five hotels, the acquisition of one hotel and inflationary cost pressures.

Current wording

Results of operations for the three months ended September 30, 2025 include the operating activities of the hotels we owned during the period. We sold one hotel located in Maitland, FL on December 6, 2024, sold one hotel located in Bloomington, MN on December 16, 2024, sold one hotel located in Brentwood, TN on January 30, 2025, sold one hotel located in Houston, TX on March 17, 2025, and sold one hotel located in Houston, TX on April 22, 2025. The changes in results described below were driven primarily by a decline in RevPAR, the sales of five hotels, and inflationary cost pressures.

Previous wording

Total revenue was $80.3 million for the three months ended June 30, 2025, down $(6.2) million compared to total revenue of $86.5 million for the corresponding 2024 period. The decrease in total revenue primarily was related to the (0.4)% decrease in same property RevPAR, the sales of five hotels, partially offset by the acquisition of one hotel. The five sold hotels contributed $0.4 million of revenue during the three months ended June 30, 2025, down $(7.0) million from the $7.4 million that the sold hotels contributed for the corresponding 2024 period. This was partially offset by the increase in revenue from the newly acquired hotel that contributed $2.1 million in revenue for the three months ended June 30, 2025, up $1.6 million from the $0.5 million that the acquired hotel contributed for the corresponding 2024 period. Since all of our hotels are select-service or limited-service hotels, room revenue is the primary revenue source as these hotels do not have significant food and beverage revenue or large group conference facilities. Room revenue comprised 91.4% and 91.4% of total revenue for the three months ended June 30, 2025 and 2024, respectively.

Current wording

Total revenue was $78.4 million for the three months ended September 30, 2025, down $8.8 million compared to total revenue of $87.2 million for the corresponding 2024 period. The decrease in total revenue primarily was related to the 2.5% decrease in same property RevPAR and the sales of five hotels. The five sold hotels contributed zero revenue during the three months ended September 30, 2025, down $7.0 million from the $7.0 million that the sold hotels contributed for the corresponding 2024 period. Since all of our hotels are select-service or limited-service hotels, room revenue is the primary revenue source as these hotels do not have significant food and beverage revenue or large group conference facilities. Room revenue comprised 91.7% and 92.0% of total revenue for the three months ended September 30, 2025 and 2024, respectively.

Previous wording

Other operating revenue is comprised of parking, meeting room, gift shop, in-room movie and other ancillary amenities revenue. Other operating revenue was $4.8 million and $5.0 million for the three months ended June 30, 2025 and 2024, respectively.

Current wording

Other operating revenue is comprised of parking, meeting room, gift shop, in-room movie and other ancillary amenities revenue. Other operating revenue was $4.6 million and $4.8 million for the three months ended September 30, 2025 and 2024, respectively.

Previous wording

Reimbursable costs from related parties were $0.2 million and $0.3 million for the three months ended June 30, 2025 and 2024, respectively. The cost reimbursements were offset by the reimbursed costs from related parties included in operating expenses.

Current wording

Reimbursable costs from related parties were $0.3 million and $0.3 million for the three months ended September 30, 2025 and 2024, respectively. The cost reimbursements were offset by the reimbursed costs from related parties included in operating expenses.

Previous wording

For the three months ended June 30, 2025 same property RevPAR decreased (0.4)% due to a decrease in occupancy of 0.4% and flat ADR. Same property RevPAR decreased 4.2% in April 2025, increased 1.6% in May 2025, and increased 1.3% in June 2025. Same property RevPAR was $146.17 in April 2025, $155.67 in May 2025 and $164.25 in June 2025.

Current wording

For the three months ended September 30, 2025 same property RevPAR decreased 2.5% due to a decrease in occupancy of 0.6% and a decrease in ADR of 1.8%. Same property RevPAR decreased 1.9% in July 2025, decreased 2.9% in August 2025, and decreased 2.6% in September 2025. Same property RevPAR was $156.48 in July 2025, $143.78 in August 2025 and $153.81 in September 2025.

Previous wording

Room expenses, which are the most significant component of hotel operating expenses, decreased $(2.0) million from $17.0 million for the three months ended June 30, 2024 to $15.0 million for the three months ended June 30, 2025. The decrease in room expenses was related primarily to the decrease in costs from the sales of five hotels, partially offset by the increase in costs from the acquisition of one hotel and the impact of inflation.

Current wording

Room expenses, which are the most significant component of hotel operating expenses, decreased $1.5 million from $17.0 million for the three months ended September 30, 2024 to $15.5 million for the three months ended September 30, 2025. The decrease in room expenses was related primarily to the decrease in costs from the sales of five hotels, partially offset by the increase in costs from the impact of inflation.

Previous wording

The remaining hotel operating expenses decreased $(1.5) million, from $29.6 million for the three months ended June 30, 2024 to $28.1 million for the three months ended June 30, 2025.

Current wording

The remaining hotel operating expenses decreased $2.6 million, from $31.2 million for the three months ended September 30, 2024 to $28.6 million for the three months ended September 30, 2025.

Previous wording

General and administrative expenses principally consist of employee-related costs, including base payroll, bonuses and amortization of restricted stock and awards of long-term incentive plan units ("LTIP units"). These expenses also include corporate operating costs, professional fees and trustees’ fees. Total general and administrative expenses (excluding amortization of share-based compensation of $1.6 million and $1.7 million for the three months ended June 30, 2025 and 2024, respectively) was $2.4 million for the three months ended June 30, 2025 versus $3.0 million for the three months ended June 30, 2024.

Current wording

General and administrative expenses principally consist of employee-related costs, including base payroll, bonuses and amortization of restricted stock and awards of long-term incentive plan units ("LTIP units"). These expenses also include corporate operating costs, professional fees and trustees’ fees. Total general and administrative expenses (excluding amortization of share-based compensation of $1.5 million and $1.7 million for the three months ended September 30, 2025 and 2024, respectively) was $2.6 million for the three months ended September 30, 2025 versus $2.7 million for the three months ended September 30, 2024.

Previous wording

Reimbursable costs from related parties, comprised of shared office expenses and rent, were $0.2 million and $0.3 million for the three months ended June 30, 2025 and 2024, respectively. The cost reimbursements were offset by the cost reimbursements from related parties included in revenues.

Current wording

Reimbursable costs from related parties, comprised of shared office expenses and rent, were $0.3 million and $0.3 million for the three months ended September 30, 2025 and 2024, respectively. The cost reimbursements were offset by the cost reimbursements from related parties included in revenues.

Previous wording

Interest expense decreased $(1.3) million from $7.7 million for the three months ended June 30, 2024 to $6.4 million for the three months ended June 30, 2025 and is comprised of the following (dollars in thousands):

Current wording

Interest expense decreased $2.1 million from $8.3 million for the three months ended September 30, 2024 to $6.2 million for the three months ended September 30, 2025 and is comprised of the following (dollars in thousands):

Previous wording

Net income was $5.5 million for the three months ended June 30, 2025, compared to net income of $7.0 million for the three months ended June 30, 2024. The change in net income was primarily due to the factors discussed above.

Current wording

Net income was $3.6 million for the three months ended September 30, 2025, compared to net income of $4.3 million for the three months ended September 30, 2024. The change in net income was primarily due to the factors discussed above.

Previous wording

Comparison of the six months ended June 30, 2025 to the six months ended June 30, 2024

Current wording

Comparison of the nine months ended September 30, 2025 to the nine months ended September 30, 2024

Previous wording

Results of operations for the six months ended June 30, 2025 include the operating activities of the hotels we owned during the period. We sold one hotel located in Denver, CO on January 9, 2024, sold one hotel located in Maitland, FL on December 6, 2024, sold one hotel located in Bloomington, MN on December 16, 2024, sold one hotel located in Brentwood, TN on January 30, 2025, sold one hotel located in Houston, TX on March 17, 2025, and sold one hotel located in Houston, TX on April 22, 2025. We acquired one hotel located in Phoenix, AZ on May 30, 2024. The changes in results described below were driven primarily by the continued recovery of business travel following the COVID-19 pandemic, the sales of six hotels, the acquisition of one hotel and inflationary cost pressures.

Current wording

Results of operations for the nine months ended September 30, 2025 include the operating activities of the hotels we owned during the period. We sold one hotel located in Denver, CO on January 9, 2024, sold one hotel located in Maitland, FL on December 6, 2024, sold one hotel located in Bloomington, MN on December 16, 2024, sold one hotel located in Brentwood, TN on January 30, 2025, sold one hotel located in Houston, TX on March 17, 2025, and sold one hotel located in Houston, TX on April 22, 2025. We acquired one hotel located in Phoenix, AZ on May 30, 2024. The changes in results described below were driven primarily by the sales of six hotels, the acquisition of one hotel and inflationary cost pressures.

Previous wording

Total revenue was $148.9 million for the six months ended June 30, 2025, down $(6.0) million compared to total revenue of $154.9 million for the corresponding 2024 period. The decrease in total revenue primarily was related to the decrease in revenue from the sales of six hotels that contributed $3.7 million in revenue for the six months ended June 30, 2025, down $(11.0) million from the $14.7 million that the sold hotels contributed for the corresponding 2024 period. This was partially offset by a 1.7% increase in same property RevPAR and the increase in revenue from the acquisition of one hotel that contributed $4.9 million of revenue during the six months ended June 30, 2025, up $4.4 million from the $0.5 million that the acquired hotel contributed for the corresponding 2024 period. Since all of our hotels are select-service or limited-service hotels, room revenue is the primary revenue source as these hotels do not have significant food and beverage revenue or large group conference facilities. Room revenue comprised 91.2% and 91.4% of total revenue for the six months ended June 30, 2025 and 2024, respectively.

Current wording

Total revenue was $227.3 million for the nine months ended September 30, 2025, down $14.8 million compared to total revenue of $242.1 million for the corresponding 2024 period. The decrease in total revenue primarily was related to the decrease in revenue from the sales of six hotels that contributed $3.7 million in revenue for the nine months ended September 30, 2025, down $17.9 million from the $21.6 million that the sold hotels contributed for the corresponding 2024 period. This was partially offset by a 0.2% increase in same property RevPAR and the increase in revenue from the acquisition of one hotel that contributed $6.4 million of revenue during the nine months ended September 30, 2025, up $4.6 million from the $1.8 million that the acquired hotel contributed for the corresponding 2024 period. Since all of our hotels are select-service or limited-service hotels, room revenue is the primary revenue source as these hotels do not have significant food and beverage revenue or large group conference facilities. Room revenue comprised 91.4% and 91.6% of total revenue for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

Other operating revenue is comprised of parking, meeting room, gift shop, in-room movie and other ancillary amenities revenue. Other operating revenue was $9.1 million and $8.9 million for the six months ended June 30, 2025 and 2024, respectively.

Current wording

Other operating revenue is comprised of parking, meeting room, gift shop, in-room movie and other ancillary amenities revenue. Other operating revenue was $13.7 million and $13.7 million for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

Reimbursable costs from related parties were $0.5 million and $0.6 million for the six months ended June 30, 2025 and 2024, respectively. The cost reimbursements were offset by the reimbursed costs from related parties included in operating expenses.

Current wording

Reimbursable costs from related parties were $0.8 million and $0.8 million for the nine months ended September 30, 2025 and 2024, respectively. The cost reimbursements were offset by the reimbursed costs from related parties included in operating expenses.

Previous wording

For the six months ended June 30, 2025 same property RevPAR increased 1.7% due to an increase in occupancy of 1.9% and a decrease in ADR of (0.1)%.

Current wording

For the nine months ended September 30, 2025 same property RevPAR increased 0.2% due to an increase in occupancy of 1.0% and a decrease in ADR of 0.7%.

Previous wording

Hotel operating expenses decreased $(3.6) million, or (4.1)%, to $84.8 million for the six months ended June 30, 2025 from $88.4 million for the six months ended June 30, 2024 The six sold hotels contributed $2.4 million in operating expenses for the six months ended June 30, 2025, down $(6.9) million from the $9.3 million that the sold hotels contributed for the corresponding 2024 period. This was partially offset by the increase in operating expenses from the acquisition of one hotel that contributed $2.3 million in operating expenses for the six months ended June 30, 2025, up $2.0 million from the $0.3 million that the acquired hotel contributed for the corresponding 2024 period. The remaining change in operating expenses was related to increased staffing levels, wage and benefit costs, and inflation.

Current wording

Hotel operating expenses decreased $7.9 million, or 5.7%, to $128.8 million for the nine months ended September 30, 2025 from $136.7 million for the nine months ended September 30, 2024 The six sold hotels contributed $2.4 million in operating expenses for the nine months ended September 30, 2025, down $11.6 million from the $14.0 million that the sold hotels contributed for the corresponding 2024 period. This was partially offset by the increase in operating expenses from the acquisition of one hotel that contributed $3.4 million in operating expenses for the nine months ended September 30, 2025, up $2.2 million from the $1.2 million that the acquired hotel contributed for the corresponding 2024 period. The remaining change in operating expenses was related to inflationary cost pressures.

Previous wording

Room expenses, which are the most significant component of hotel operating expenses, decreased $(2.3) million from $32.1 million for the six months ended June 30, 2024 to $29.8 million for the six months ended June 30, 2025. The decrease in room expenses was related primarily to the decrease in costs from the sales of six hotels, partially offset by the increase in costs from the acquisition of one hotel and an increase in costs related to an increase in same property occupancies at our hotels.

Current wording

Room expenses, which are the most significant component of hotel operating expenses, decreased $3.8 million from $49.1 million for the nine months ended September 30, 2024 to $45.3 million for the nine months ended September 30, 2025. The decrease in room expenses was related primarily to the decrease in costs from the sales of six hotels, partially offset by the increase in costs from the acquisition of one hotel and an increase in costs related to an increase in same property occupancies at our hotels.

Previous wording

The remaining hotel operating expenses decreased $(1.3) million, from $56.3 million for the six months ended June 30, 2024 to $55.0 million for the six months ended June 30, 2025.

Current wording

The remaining hotel operating expenses decreased $3.9 million, from $87.5 million for the nine months ended September 30, 2024 to $83.6 million for the nine months ended September 30, 2025.

Previous wording

Total property taxes, ground rent and insurance expenses increased $0.6 million from $11.3 million for the six months ended June 30, 2024 to $11.9 million for the six months ended June 30, 2025. The increase was primarily related to increases in property tax assessments partially offset by the sales of six hotels.

Current wording

Total property taxes, ground rent and insurance expenses decreased $0.5 million from $17.7 million for the nine months ended September 30, 2024 to $17.2 million for the nine months ended September 30, 2025. The decrease was primarily related to the sales of six hotels partially offset by increases in property tax assessments.

Previous wording

General and administrative expenses principally consist of employee-related costs, including base payroll, bonuses and amortization of restricted stock and awards of long-term incentive plan units ("LTIP units"). These expenses also include corporate operating costs, professional fees and trustees’ fees. Total general and administrative expenses (excluding amortization of share-based compensation of $3.2 million and $3.3 million for the six months ended June 30, 2025 and 2024, respectively) was $5.4 million for the six months ended June 30, 2025 versus $6.0 million for the six months ended June 30, 2024.

Current wording

General and administrative expenses principally consist of employee-related costs, including base payroll, bonuses and amortization of restricted stock and awards of long-term incentive plan units ("LTIP units"). These expenses also include corporate operating costs, professional fees and trustees’ fees. Total general and administrative expenses (excluding amortization of share-based compensation of $4.7 million and $4.9 million for the nine months ended September 30, 2025 and 2024, respectively) was $8.0 million for the nine months ended September 30, 2025 versus $8.7 million for the nine months ended September 30, 2024.

Previous wording

Reimbursable costs from related parties, comprised of shared office expenses and rent, were $0.5 million and $0.6 million for the six months ended June 30, 2025 and 2024, respectively. The cost reimbursements were offset by the cost reimbursements from related parties included in revenues.

Current wording

Reimbursable costs from related parties, comprised of shared office expenses and rent, were $0.8 million and $0.8 million for the nine months ended September 30, 2025 and 2024, respectively. The cost reimbursements were offset by the cost reimbursements from related parties included in revenues.

Previous wording

Interest on cash and cash equivalents and other income decreased $(0.6) million from $0.7 million for the three months ended June 30, 2024 to $0.1 million for the three months ended June 30, 2025. The decrease was due to lower cash balances during the three months ended June 30, 2025.

Current wording

Interest on cash and cash equivalents and other income decreased $1.4 million from $1.6 million for the nine months ended September 30, 2024 to $0.2 million for the nine months ended September 30, 2025. The decrease was due to lower cash balances during the nine months ended September 30, 2025.

Previous wording

Interest expense decreased $(1.7) million from $15.0 million for the six months ended June 30, 2024 to $13.3 million for the six months ended June 30, 2025 and is comprised of the following (dollars in thousands):

Current wording

Interest expense decreased $3.8 million from $23.3 million for the nine months ended September 30, 2024 to $19.5 million for the nine months ended September 30, 2025 and is comprised of the following (dollars in thousands):

Previous wording

The decrease in interest expense was due to lower debt balances during the six months ended June 30, 2025 than during the six months ended June 30, 2024.

Current wording

The decrease in interest expense was due to lower debt balances during the nine months ended September 30, 2025 than during the nine months ended September 30, 2024.

Previous wording

Income tax expense remained unchanged at zero for the six months ended June 30, 2025 and 2024. We are subject to income taxes based on the taxable income of our TRS Lessees at a combined federal and state tax rate of approximately 25%. The Company’s TRS continues to have cumulative three-year taxable losses and recognizes a full valuation allowance equal to 100% of the gross deferred tax assets due to the uncertainty of the TRS's ability to utilize these deferred tax assets.

Current wording

Income tax expense remained unchanged at zero for the nine months ended September 30, 2025 and 2024. We are subject to income taxes based on the taxable income of our TRS Lessees at a combined federal and state tax rate of approximately 25%. The Company’s TRS continues to have cumulative three-year taxable losses and recognizes a full valuation allowance equal to 100% of the gross deferred tax assets due to the uncertainty of the TRS's ability to utilize these deferred tax assets.

Previous wording

Net income was $7.0 million for the six months ended June 30, 2025, compared to net income of $1.5 million for the six months ended June 30, 2024. The change in net income was primarily due to the factors discussed above.

Current wording

Net income was $10.6 million for the nine months ended September 30, 2025, compared to net income of $5.9 million for the nine months ended September 30, 2024. The change in net income was primarily due to the factors discussed above.

Previous wording

The following is a reconciliation of net income (loss) to FFO and Adjusted FFO for the three and six months ended June 30, 2025 and 2024 (in thousands, except share data):

Current wording

The following is a reconciliation of net income (loss) to FFO and Adjusted FFO for the three and nine months ended September 30, 2025 and 2024 (in thousands, except share data):

Previous wording

The following is a reconciliation of net income (loss) to EBITDA, EBITDAre and Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024 (in thousands):

Current wording

The following is a reconciliation of net income (loss) to EBITDA, EBITDAre and Adjusted EBITDA for the three and nine months ended September 30, 2025 and 2024 (in thousands):

Previous wording

The following is a presentation of, and a reconciliation of net income (loss) to, Adjusted Hotel EBITDA for the three and six months ended June 30, 2025 and 2024 (in thousands):

Current wording

The following is a presentation of, and a reconciliation of net income (loss) to, Adjusted Hotel EBITDA for the three and nine months ended September 30, 2025 and 2024 (in thousands):

Previous wording

Cash, cash equivalents, and restricted cash totaled $24.2 million as of June 30, 2025, a decrease of $(5.6) million from December 31, 2024, primarily due to net cash provided by operating activities of $26.3 million, net cash provided by investing activities of $36.5 million, and net cash used in financing activities of $(68.4) million.

Current wording

Cash, cash equivalents, and restricted cash totaled $21.4 million as of September 30, 2025, a decrease of $8.5 million from December 31, 2024, primarily due to net cash provided by operating activities of $51.8 million, net cash provided by investing activities of $32.4 million, and net cash used in financing activities of $92.7 million.

Previous wording

Net cash flows provided by operating activities decreased $(5.8) million to $26.3 million during the six months ended June 30, 2025 compared to $32.1 million during the six months ended June 30, 2024. The decrease in cash from operating activities was primarily due to the sales of six hotels.

Current wording

Net cash flows provided by operating activities decreased $9.1 million to $51.8 million during the nine months ended September 30, 2025 compared to $60.9 million during the nine months ended September 30, 2024. The decrease in cash from operating activities was primarily due to the sales of six hotels.

Previous wording

Net cash flows provided by investing activities increased $82.5 million to $36.5 million during the six months ended June 30, 2025 compared to $(46.0) million during the six months ended June 30, 2024. For the six months ended June 30, 2025, net cash flows provided by investing activities of $36.5 million consisted of $53.0 million in net proceeds related to the sales of three hotels, partially offset by $(16.4) million related to capital improvements on our hotels. For the six months ended June 30, 2024, net cash flows used in investing activities of $(46.0) million consisted of $18.7 million related to capital improvements on our hotels, $43.7 million related to the acquisition of one hotel, and $0.7 million of payments of franchise application costs, partially offset by $17.2 million in net proceeds related to the sale of one hotel.

Current wording

Net cash flows provided by investing activities increased $84.5 million to $32.4 million during the nine months ended September 30, 2025 compared to $(52.1) million during the nine months ended September 30, 2024. For the nine months ended September 30, 2025, net cash flows provided by investing activities of $32.4 million consisted of $53.0 million in net proceeds related to the sales of three hotels, partially offset by $20.4 million related to capital improvements on our hotels and $0.1 million of payments of franchise application costs. For the nine months ended September 30, 2024, net cash flows used in investing activities of $52.1 million consisted of $24.9 million related to capital improvements on our hotels, $43.7 million related to the acquisition of one hotel, and $0.7 million of payments of franchise application costs, partially offset by $17.2 million in net proceeds related to the sale of one hotel.

Previous wording

We expect to invest approximately $9.3 million on renovations, discretionary and emergency expenditures on our existing hotels during the remainder of 2025, including improvements required under any brand PIP.

Current wording

We expect to invest approximately $5.7 million on renovations, discretionary and emergency expenditures on our existing hotels during the remainder of 2025, including improvements required under any brand PIP.

Previous wording

Net cash flows used in financing activities increased $22.3 million to $(68.4) million during the six months ended June 30, 2025 compared to $(46.1) million during the six months ended June 30, 2024. For the six months ended June 30, 2025, net cash flows used in financing activities of $(68.4) million were comprised of the repayment of mortgage debt of $16.0 million, net repayments on our revolving credit facility of $40.0 million, distributions to common share and LTIP unit holders of $8.3 million, distributions on preferred shares of $4.0 million, and repurchases of common shares of $0.1 million. For the six months ended June 30, 2024, net cash flows used in financing activities of $(46.1) million were comprised of the repayment of mortgage debt of $264.0 million, distributions to common share and unit holders of $7.2 million, distributions on preferred shares of $4.0 million, payments of financing costs of $1.0 million, and payments of offering costs on common shares of $0.3 million, partially offset by net borrowings on our revolving credit facility of $120.0 million, borrowings on our unsecured term loan of $50.0 million, and proceeds from the issuance of mortgage debt of $60.3 million.

Current wording

Net cash flows used in financing activities increased $27.0 million to $92.7 million during the nine months ended September 30, 2025 compared to $65.7 million during the nine months ended September 30, 2024. For the nine months ended September 30, 2025, net cash flows used in financing activities of $92.7 million were comprised of net repayments on our revolving credit facility of $110.0 million, the repayment of mortgage debt of $16.0 million, payments of financing costs of $5.9 million, repurchases of common shares of $2.0 million, distributions to common share and LTIP unit holders of $13.0 million, and distributions on preferred shares of $6.0 million, partially offset by net borrowings on our unsecured term loan of $60.0 million. For the nine months ended September 30, 2024, net cash flows used in financing activities of $65.7 million were comprised of the repayment of mortgage debt of $282.9 million, distributions to common share and unit holders of $10.8 million, distributions on preferred shares of $6.0 million, payments of financing costs of $1.1 million, and payments of offering costs on common shares of $0.3 million, partially offset by net borrowings on our revolving credit facility of $125.0 million, borrowings on our unsecured term loan of $50.0 million, and proceeds from the issuance of mortgage debt of $60.3 million.

Previous wording

We declared total dividends of $0.18 and $0.14 per common share and LTIP unit for the six months ended June 30, 2025 and 2024, respectively. We declared total dividends of $0.82812 and $0.82812 per Series A preferred share for the six months ended June 30, 2025 and 2024, respectively.

Current wording

We declared total dividends of $ 0.27 and $ 0.21 per common share and LTIP unit for the nine months ended September 30, 2025 and 2024, respectively. We declared total dividends of $1.24218 and $1.24218 per Series A preferred share for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

At June 30, 2025, our leverage ratio was approximately 21.1% measured as the ratio of our net debt (total debt outstanding before deferred financing costs less unrestricted cash and cash equivalents) to hotel investments at cost. Over the past several years, we have maintained a leverage ratio between the low 20s and the low 50s. At June 30, 2025, we had total debt of $353.2 million at an average interest rate of approximately 6.46%.

Current wording

At September 30, 2025, our leverage ratio was approximately 20.6% measured as the ratio of our net debt (total debt outstanding before deferred financing costs less unrestricted cash and cash equivalents) to hotel investments at cost. Over the past several years, we have maintained a leverage ratio between the low 20s and the low 50s. At September 30, 2025, we had total debt of $343.2 million at an average interest rate of approximately 6.29%.