Chatham Lodging Trust (CLDT) has reported 6.71 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $13.36 million, or $0.34 a share in the quarter, compared with $14.32 million, or $0.37 a share for the same period last year.    

Revenue during the quarter went up marginally by 1.79 percent to $79.73 million from $78.33 million in the previous year period.

Cost of revenue rose 7.81 percent or $3.22 million during the quarter to $44.43 million. Gross margin for the quarter contracted 311 basis points over the previous year period to 44.27 percent.

Total expenses were $60.28 million for the quarter, up 3.72 percent or $2.16 million from year-ago period. Operating margin for the quarter contracted 140 basis points over the previous year period to 24.40 percent.

Operating income for the quarter was $19.46 million, compared with $20.21 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $37.17 million compared with $39.35 million in the prior year period. At the same time, adjusted EBITDA margin contracted 363 basis points in the quarter to 46.62 percent from 50.24 percent in the last year period.  

For the fourth-quarter, Chatham Lodging Trust forecasts revenue to be in the range of $64 million to $65.20 million. It projects net income to be in the range of $1 million to $2 million.  The company expects diluted earnings per share to be in the range of $0.03 to $0.05.

For financial year 2016, Chatham Lodging Trust forecasts revenue to be in the range of $287.80 million to $289 million.  It projects net income to be in the range of $29.80 million to $30.80 million. The company expects diluted earnings per share to be in the range of $0.77 to $0.80.

Occupancy revenue was $74.74 million for the quarter, up 1.88 percent or $1.38 million. Food and beverage revenue was $1.49 million during the quarter, up 11.08 percent or $0.15 million from year-ago period. Revenue from other hotel operating activities was almost stable at $2.70 million, when compared with the previous year period.

Other income during the quarter was $0.80 million, down 13.36 percent or $0.12 million from year-ago period.

"Our 2015 third quarter was very strong with our occupancy reaching an historic high of 87 percent. Although we successfully increased room rates in the 2016 third quarter, our occupancy softened, resulting in a 2.1 percent RevPAR decline," noted Jeffrey H. Fisher, chatham's president and chief executive officer. "Our RevPAR was adversely impacted more than expected due to restrained business travel, as well as new supply in several of our key markets and a significant worsening in demand in our oil-industry influenced Houston and western Pennsylvania markets. We have six hotels in those markets, and those properties experienced a 21 percent drop in RevPAR. Those markets negatively impacted our overall RevPAR performance by approximately 200 basis points, the major cause of our RevPAR decline."

Real estate investments stood at $20.94 million as on Sep. 30, 2016, down 16.01 percent or $3.99 million from year-ago.   

Total assets went down marginally by 1.94 percent or $26.02 million to $1,315.85 million on Sep. 30, 2016. On the other hand, total liabilities were at $624.87 million as on Sep. 30, 2016, down 1.64 percent or $10.40 million from year-ago.

Return on assets moved down 4 basis points to 1.56 percent in the quarter. At the same time, return on equity moved down 9 basis points to 1.93 percent in the quarter.