Chatham Lodging Trust (CLDT) 2026年第三季法說會：RevPAR成長8.3%，調升財測指引

重點摘要

• Chatham Lodging Trust 公布 2026 年第三季 RevPAR 為 161 美元，創下單季歷史新高，RevPAR 成長 8.3%，投資組合住房率達 83%，為 2019 年以來的單季最高水準。
• 飯店 EBITDA 達 3,570 萬美元，調整後 EBITDA 為 3,190 萬美元。每股調整後 FFO 年增 31% 至 0.46 美元。
• 在勞動生產力提升、費用控制，以及停車場、取消手續費和食品輕食部營運利潤增加的帶動下，飯店 EBITDA 利潤率擴增 190 個基點至 38.7%。
• 矽谷引領投資組合成長。RevPAR 成長 23%，飯店 EBITDA 成長 51%，飯店 EBITDA 利潤率擴增 740 個基點至近 43%。
• 管理階層將全年調整後 FFO 財測指引中位數從每股 1.09 美元上調至 1.39 美元。目前 2026 年指引為每股 1.38 至 1.40 美元。
• 該公司預計在扣除股利以及維護與翻修資本支出後，2026 年自由現金流約為 2,500 萬美元，為開發、收購、去槓桿減債、庫藏股買回或股利成長提供充裕空間。

核心財務數據

業務與營運表現

商務差旅約佔 Chatham EBITDA 的 75%，是主要的需求成長動能。該公司約 85% 的飯店實現 RevPAR 成長，80% 的飯店提高 ADR，39 家飯店中有 13 家呈現雙位數的 RevPAR 成長。

矽谷地區為第三季整體 RevPAR 成長貢獻了 250 個基點。該市場的四家飯店住房率接近 85%，其中山景城 (Mountain View) 與桑尼維爾 (Sunnyvale) 物業的主要企業客戶產值成長 22% 至 29%，聖馬刁 (San Mateo) 則成長超過 50%。10 月矽谷 RevPAR 仍較去年同期高出約 18%，住房率接近 80%。

管理階層表示，若桑尼維爾的兩家飯店重回 2019 年 RevPAR 水準，可望增加 400 萬至 500 萬美元的 FFO，相當於每股 0.08 至 0.10 美元。這仍屬於潛在的復甦機會，而非正式財測指引。

矽谷以外地區，達拉斯與華盛頓特區的 RevPAR 分別成長 20% 與 15%。Chatham 旗下的五家會議型飯店 RevPAR 成長 15%，其中達拉斯成長 34%、奧斯汀成長 20%、聖安東尼奧成長 21%。該公司七家以休閒為主的飯店則錄得約 1% 的成長。

3 月收購的中西部資產組合帶來了 9.8% 的 RevPAR 成長與 300 萬美元的飯店 EBITDA。截至 9 月的年初至今，這個價值約 1 億美元的資產組合實現了 8% 的 RevPAR 成長，並使 GOP 利潤率擴增 140 個基點至 48%。

透過頻繁調整工時、採購和其他營運成本，費用增長獲得良好控制。儘管住房率從第二季的 81% 升至第三季的 83%，但每間入住客房的人事與福利成本僅增加 2.9%。其他營運部門利潤增加 23% 至 390 萬美元，其中包括停車利潤增加 12%，以及取消手續費翻倍至近 50 萬美元。

管理階層財測指引

管理階層表示，對 11 月和 12 月的預期較為保守，意味著 RevPAR 成長率落在低個位數區間。儘管 10 月 RevPAR 成長 7.9%，但公司預計矽谷地區在感恩節和年終假期前後將出現正常的季節性放緩。

Chatham 預計在幾乎無需新增借款的情況下，為緬因州波特蘭 Home2 Suites 的開發案提供資金。該飯店預計於 2028 年開幕，管理階層表示其將帶來獲利增長效益。

風險與關注事項

• 矽谷地區飯店通常在 11 月中旬至 1 月下旬或 2 月初步入淡季，對第四季需求形成季節性壓力。
• 聖地牙哥瓦斯燈街區 Residence Inn 已展開翻修，這可能會影響短期營運表現。管理階層預計未來幾年每年將翻修約五家飯店。
• 部分市場的休閒需求依然疲軟。薩凡納 SpringHill Suites 的 RevPAR 下降 4%，朴茨茅斯 Hilton Garden Inn 的 RevPAR 下降 6%；管理階層指出原因在於加拿大休閒需求轉弱以及周邊新增供給。
• 儘管達拉斯和奧斯汀第三季均實現強勁成長，但兩地的會議中心目前仍處於大幅或實質關閉的狀態。
• 管理階層指出，2026 年產業的部分成長受惠於去年同期的低基期以及外部干擾因素，這些情況在 2027 年可能不會重現。
• 旗下有一家飯店已簽署約 1,150 萬美元的出售合約，但管理階層表示，能否在年底前完成交割仍取決於該交易的最終落實情況。

分析師問答亮點

管理階層表示，矽谷的住房率仍有提升空間。過去在表現較強勁的第二季和第三季，該地飯店住房率曾達到 85% 以上至 90% 的區間，而 2026 年第三季則接近 85%。

展望 2027 年，管理階層預期商務差旅和資本投資活動仍將是關鍵的需求動能，特別是在矽谷、中西部和東南部地區。Chatham 也強調其在長期住宿型飯店的布局：旗下 66% 的飯店屬於長期住宿型物業，使該資產組合在滿足較長天期的企業與專案住宿需求方面佔據優勢。

飯店翻修採取分階段錯開進行，以避免多家主要飯店同時暫停營運。其中一家桑尼維爾物業排定於 2027 年第四季開始的 11 月至 2 月期間進行翻修，隔年輪到第二家桑尼維爾飯店，隨後是聖馬刁飯店。管理階層預期翻修後的矽谷物業將有助於推升 ADR 成長。

完整法說會逐字稿

完整財報電話會議逐字稿

管理層陳述

Operator

Good morning, everyone, and thank you for standing by. My name is Jill, and I will be your operator for today. At this time, I would like to welcome each and every one of you to the Chatham Lodging Trust Third Quarter 2026 Financial Results Conference Call.

[Operator Instructions]

I will now turn the call over to Chris Daly, President of Daly Gray Public Relations. Please go ahead.

Chris Daly

Thank you, Jill. Good morning, everyone, and welcome to the Chatham Lodging Trust Third Quarter 2026 Results Conference Call. Please note that many of our comments today are considered forward-looking statements as defined by federal securities laws. Statements are subject to risks and uncertainties, both known and unknown, as described in our most recent Form 10-K and other SEC filings. All information in this call is as of November 5, 2026, unless otherwise noted, and the company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.

You can find copies of our SEC filings and earnings release, which contain reconciliations to non-GAAP financial measures referred to on this call, on our website at chathamlodgingtrust.com. Now, to provide you with some insight into Chatham's 2026 third quarter results, allow me to introduce Jeff Fisher, Chairman, President, and Chief Executive Officer; Dennis Craven, Executive Vice President and Chief Operating Officer; and Jeremy Wegner, Senior Vice President and Chief Financial Officer. I'm going to turn the session over to Jeff Fisher. Jeff?

Jeffrey Fisher

Okay, thanks, Chris, and good morning, everyone. Certainly appreciate all joining us this morning here. Dennis, Jeremy, and I are coming to you from our Homewood Suites in Paducah, Kentucky, after touring all 6 of our recently acquired hotels over the last couple of days. And let me tell you something, believe it or not, it's pretty exciting to be here. Let's start there.

Year-to-date through September, the approximate $100 million portfolio generated excellent results with third quarter RevPAR growth of 10% and GOP margins of 45.4%. Year-to-date through September, RevPAR rose 8% and GOP margins expanded 140 basis points to 48%. Both metrics outperformed our portfolio in the quarter and year-to-date, which is just fantastic.

Demand growth has been approximately 3% in 2026, and that number accelerated in the third quarter to almost 5%. As we enter the seasonally slower months, we look ahead to another good year next year and the full ramp-up of events at the new and recently expanded athletic complexes in Paducah.

Pivoting to our overall results, it was another great quarter, stacked on top of an equally strong second quarter and a very good first quarter, with excellent results on the top line, margins, and flow-through to Hotel EBITDA and FFO per share. Listen to these third quarter results: RevPAR up 8%, Hotel EBITDA margins up 190 basis points, and EBITDA up 21%, with our FFO per share up 31%. We certainly haven't seen that for a while. Combining outstanding operating results with a very accretive acquisition, while strategically hitting a home run with our share repurchase plan, are each meaningful contributors that have enabled us to easily beat our original expectations for the year.

We've increased our original FFO per share guidance from $1.09 to $1.39 at the midpoint, a 28% increase. Third quarter RevPAR of $161 set an all-time high off the back of record July and September RevPAR. Business travel represents approximately 75% of our EBITDA, and BT demand was the biggest driver of our results. All of the major airlines are seeing the same thing as American. American said corporate travel is up 28%, with small and medium business performance up 46%. Delta reported its highest corporate sales week ever during the third quarter and corporate sales across all sectors up double digits. United said business revenue was up 22% in the quarter.

And Southwest said the third quarter included 20 of the top 50 corporate booking days in history. Obviously, all this is very encouraging for the hotel industry overall, but especially for us, given BT is, as I said, by far our most important segment. Also, we are continuing to see announcement after announcement of business investment happening around the country, and it is driving BT demand up and down the chain scales. We've seen broad strength across our portfolio as evidenced by our overall portfolio occupancy of 83% in the quarter, which marks our highest quarterly occupancy since 2019. Additionally, 13 of our 39 hotels produced double-digit RevPAR growth in the quarter.

Of course, for us, for years we were asked by investors and potential investors when Silicon Valley was going to come back to life. And we can affirmatively say it is. RevPAR surged 23% to $174, which is the highest quarterly RevPAR since the pandemic, excluding the intern-heavy third quarter of 2022.

RevPAR has been up double digits 5 of the last 6 years, and projected 2026 RevPAR growth should be our best growth since the pandemic. This is obviously a great statistic. Third quarter occupancy reached 85% for the hotels, which represents the 4th highest quarterly occupancy in the last decade. As we've previously spoken, once occupancy starts getting above 80%, it allows us to start pushing ADR more aggressively. Depending on how the fourth quarter finishes, we may very well achieve a 10% ADR increase this year, which would be a great way to head into 2027 for those hotels. We are experiencing strong corporate demand in the Valley. All 4 hotels have seen top account production increases ranging from 22% to 29% at our Mountain View and both Sunnyvale hotels, and over 50% increases at our San Mateo hotel.

If you look at our growth in the second and third quarters, our hotels actually did better outside of the World Cup games. Our top accounts are filled with names everyone knows, whether it be Applied Materials, Palo Alto Networks, NVIDIA, Alphabet, Amazon, Microsoft, SAP, Sony, Roblox, Samsung, or Tesla, just to name a few. By the way, Silicon Valley's strength continued in October with RevPAR growth of approximately 18% and occupancy of almost 80%. As we've reiterated, a key component of the Chatham growth story moving forward is the accelerating recovery of these 4 hotels that will drive outperformance.

Silicon Valley added 250 basis points to our third quarter RevPAR growth. Outside of the Valley, among our largest markets, Dallas and Washington, D.C. were the best performers, with RevPAR growth of 20% and 15%, respectively. As everyone knows, the Dallas Convention Center has been substantially closed for renovation and expansion since 2024, but it still hosts some smaller events, and our performance benefited from some World Cup demand related to the entire media center for the first part of July and a great job by our team selling the hotel with RevPAR up 34% in the quarter. That was the media center for the World Cup.

Of course, performance at our 3 D.C. hotels thankfully benefited from no shutdowns or threats of shutdowns, encouragingly, and this applies to all our hotels. Government per diem rates for the next year, 2026 to 2027 period, are up on an average over 5% across our portfolio. So that's some good news looking forward.

Year-to-date RevPAR at our 2 Sunnyvale hotels is approximately 18% below 2019 levels still. Mountain View was under renovation this year, so it's not comparable, but it's trending around the same level. Relative to 2019, San Mateo is up approximately 8% versus 2019. Returning RevPAR to 2019 levels at the 2 big Sunnyvale hotels would add another $4 million to $5 million of FFO, or an additional $0.08 to $0.10 per share.

Before handing the call over to Dennis, I want to emphasize that we are thrilled with our results so far this year. What I said earlier is a combination of great results along with great strategic decisions over the past few years, and thankfully shareholders have noticed, and our returns lead all lodging REITs in 2026. Having said that, we strongly believe in our ability to further increase shareholder value via multiple levers. As a reminder, the overall lack of new supply in the industry favors existing owners, and combine that with the robust demand growth we are seeing across the board in many of our markets certainly bodes well for 2027 and beyond, and our portfolio will continue to benefit from the continued resurgence of the business traveler, and of course, no other lodging company has the internal growth upside that Chatham does, given our exposure to Silicon Valley and Bellevue.

Now, add in the fact that we generate the highest operating margins in the industry, that means our FFO growth potential is very strong, and that's before investing money on any external acquisitions. Finally, we are generating strong cash flow after CapEx and dividends that we can use to accrete FFO, whether that's by paying down debt, making acquisitions, repurchasing shares, or increasing our common dividend.

Our balance sheet is in great shape after our successful recycling of assets and paying down debt over the last couple of years. So based on our guidance, we estimate that we will generate $25 million of free cash flow. And let's not forget our Portland Home2 Suites will deliver accretive earnings upon its opening in 2028. We look forward to executing on these many levers that we do have and delivering for our shareholders going forward. With that, I'd like to turn it over to Dennis.

Dennis Craven

Thanks, Jeff. We continue to experience broad demand growth across our portfolio with approximately 85% of our hotels generating RevPAR growth and 80% of our hotels pushing ADRs higher. And as Jeff stated, 1/3 of our hotels experienced double-digit RevPAR gains. Trends are even better than the strong trends we saw in both of the first 2 quarters.

Our top 5 RevPAR hotels in the quarter were led by our Hampton Inn Portland with RevPAR of $350, essentially flat to last year, an incredible $120 higher than our second highest hotel, the Hilton Garden Inn Portsmouth, with RevPAR of $230. Rounding out our top 5 were the Hilton Garden Inn Marina del Rey with a RevPAR of $225, our Residence Inn in White Plains, New York, with a RevPAR of $206, and then the Residence Inn Mountain View, producing great results following its renovation.

We had little exposure to the World Cup in the third quarter, benefiting only slightly from 1 game at Levi's Stadium and 1 at SoFi Stadium, as well as the media center in Dallas that Jeff spoke about. Our 7 predominant leisure hotels generated RevPAR growth of approximately 1% in the quarter. Our leisure hotels were led by our Hyatt Place Pittsburgh / North Shore, which saw RevPAR grow 17%. On the downside, our Savannah SpringHill Suites cooled off slightly, down 4% in the quarter, with that mark softening after being really on fire for the last several years. Our Hilton Garden Inn Portsmouth saw RevPAR decline 6% in the quarter, due to leisure demand softness from Canada and a new Homewood Suites that opened earlier this year just down the block.

Our 5 convention hotels saw RevPAR expand 15% in the quarter. Dallas and Austin had rebound quarters with RevPAR up 34% and 20%, respectively, gaining business even though their respective convention centers are essentially closed. Austin also benefited from increased business travel from key corporate accounts in The Domain, where both of our hotels are located. Another nice development occurred in San Antonio with our hotel up there 21% in the quarter. Outside of our larger markets, we had another great quarter at our 2 hotels outside of Charleston in Summerville, where RevPAR grew 10%, and our Home2 Suites Phoenix Downtown experienced RevPAR gains of 13% in the quarter.

Switching to our bottom-line successes, we had another great quarter managing expenses and maximizing employee productivity as well as increasing our out-of-room profits, which ultimately are driving our margins higher. We continue to focus on increasing other operating department revenue and profits, and we were able to increase those profits by about $700,000 or 23% in the quarter from $3.2 million to $3.9 million. Within our other operating departments, we increased parking profit by $260,000 or 12% and doubled our cancellation fees to almost $500,000 due to increased focus on collecting and also benefiting from the PMS implementations which automated cancellation fee collections. We even increased our pantry profits by 10% in the quarter. Just a fantastic job by our teams focusing on these profit enhancement initiatives.

Our employee productivity remains excellent. We maintained a steady level of employment versus the end of the second quarter. It was actually down 4 employees, and that's a nice achievement, even though portfolio occupancy rose to 83% from 81% from the second quarter to the third quarter. For the quarter, our labor and benefits cost per occupied room increased 2.9%, thus allowing us to meaningfully expand our operating margins.

Outside of labor and benefits, we were able to drive margins higher by reducing our repairs and maintenance, our utilities, our property taxes, and our property insurance line items all by approximately 30 basis points each. Again, should be some good news coming on the property insurance renewal upcoming for 2027 with expectations of a further reduction of 8% to 10% expected at this point. For us, it's not big dollars, and it's probably only a decrease of probably around a few hundred thousand dollars, but nonetheless great to see and will help offset what seems to be never-ending increases in healthcare costs and employee-related liability insurance.

For the quarter, our top 5 producers of GOP were led by the little old Hampton Inn Portland, with GOP of $2.4 million, just another fantastic quarter, followed by our Residence Inn San Diego Gaslamp Quarter, and then 3 of our 4 tech hotels or our 5 tech hotels, our Residence Inn Bellevue, our 2 Sunnyvale hotels, rounding out the top 5. And when you include Mountain View and San Mateo, all 4 Silicon Valley hotels were in the top 11 of our 39 hotels. If you look at Hotel EBITDA, really the only difference in the top 5 is that our Embassy Suites Springfield bested our Sunnyvale #1 hotel to reach the top 5.

Looking further at the Silicon Valley hotels, third quarter GOP was up 39% and Hotel EBITDA grew 51% year-over-year on a 23% increase in RevPAR. Our third quarter GOP margins were approximately 50%, up 500 basis points, and our Hotel EBITDA margins of almost 43% rose 740 basis points. We did receive about $100,000 of property tax refunds in the quarter on 1 of our hotels in Sunnyvale, which added about 80 basis points to that margin, but still, excluding that, 660 basis points of Hotel EBITDA margin improvement.

We discussed last quarter that we most likely look to opportunistically sell an asset or 2 this year. We do have 1 hotel currently under contract for approximately $11.5 million that would close before the end of the year if it is completed. On the CapEx front, we spent approximately $3 million in the quarter and $17 million year-to-date, with our full budget for the year being about $27 million. And we do have 3 hotels scheduled for renovation later this year, which are our Gaslamp Residence Inn, Farmington Homewood Suites, and our Hyatt Place Pittsburgh, which will commence its renovation most likely now in early January, given the fact that the Steelers at least look to be making the playoffs at the moment. So I'll turn it over to Jeremy.

Jeremy Wegner

Thanks, Dennis. Good morning, everyone. Our Q3 2026 Hotel EBITDA was $35.7 million, Adjusted EBITDA was $31.9 million, and Adjusted FFO was $0.46 per share. We were able to generate a GOP margin of 44.7% and Hotel EBITDA margin of 38.7% in Q3. GOP margins for the quarter were up 110 basis points from last year, and Hotel EBITDA margins increased 190 basis points.

The Midwest portfolio that we acquired in March generated RevPAR growth of 9.8% and $3 million of Hotel EBITDA in Q3. Chatham's overall RevPAR growth of 8.3% in Q3 exceeded our expectations going into the quarter, and the strong top-line performance has continued into October, where Chatham's RevPAR increased 7.9%. While Chatham's top-line performance was strong across many markets, performance was strongest in Silicon Valley, where RevPAR increased 23% in the quarter. Costs continue to remain manageable, with rooms labor up just under 3% on a cost-per-occupied-room basis in Q3.

Chatham's balance sheet remains in excellent condition and provides significant flexibility to fund opportunistic growth through accretive acquisitions and the development of the Home2 Suites Portland, Maine. As of Q3, Chatham's leverage ratio, as defined in its credit facility, was only 29.3%, and the company had $235 million of availability under its revolving credit facility. Continuing strong EBITDA growth and meaningful free cash flow after dividends are expected to further enhance our financial flexibility. In 2026, we expect to generate approximately $25 million of free cash flow after dividends, and maintenance and renovation capital expenditures. With this level of free cash flow, Chatham will be able to fund the development of the Home2 Suites Portland with virtually no incremental borrowing.

Turning to our full year guidance for 2026, we expect RevPAR growth of 4% to 4.5%, Adjusted EBITDA of $104.2 million to $105.3 million, and Adjusted FFO per share of $1.38 to $1.40 for the full year. We generally expect that Chatham's Q4 RevPAR growth will be approximately 3.5% to 4%.

That concludes my portion of the call. Operator, please open the line for questions.

Operator

[Operator Instructions]

The first question comes from the line of Gaurav Mehta with Alliance Global Partners.

分析師問答

Gaurav Mehta

I wanted to ask you on your Silicon Valley hotels, maybe on the occupancy side, what's the upside left on the occupancy side? Is this more like a natural cap on the occupancy? And then how does the occupancy for a Silicon Valley hotel compare to the market occupancy in Silicon Valley?

Dennis Craven

Hey, Gaurav, this is Dennis. I mean, listen, I think if you look at upside, and I don't have the full year quantified for you, but if you go back to pre-pandemic years, you know, the Silicon Valley hotels ran upwards of 80s and into the 90s in terms of occupancy, especially in the second and third quarters. And then seasonally, those hotels slow down from kind of mid-November to mid-February. So there's still a lot of upside in total occupancy levels. I think when you looked at our third quarter occupancy of almost 85%, there's still room to run there.

Gaurav Mehta

My second question is on the expense side. It seems like your expense growth in the quarter was 2.5%. Can you maybe provide some color on how you managed to keep the expenses lower in the quarter?

Dennis Craven

Sure. Yes, I mean, Gaurav, this is something really we've—and I'll give kudos to Island Hospitality. We don't like giving them too many compliments here and there sometimes. But really over the last few years, they've invested a lot of resources and people especially that are really looking at trends and patterns every day of the week and staying in constant communication with the GMs and the regional VPs, just ensuring that they are adjusting their expense patterns, their buying, their labor most importantly in terms of hours on a very frequent basis. Just those controls allow us to really keep a handle on especially employee productivity.

Gaurav Mehta

All right, thank you. That's all I have.

Dennis Craven

Thank you, Gaurav.

Operator

Your next question comes from the line of Tyler Batory with Oppenheimer.

Tyler Batory

I don't want to lose the forest through the trees with this first question, but I am curious a little bit more about what you're seeing the rest of Q4, just in terms of trying to bridge the RevPAR performance so far this year, the RevPAR performance through October in particular, and then November and December, and how those are shaping up as the holiday kind of complicates things and it's seasonally slow, but just wanted to see what you're seeing to end the year.

Dennis Craven

Yes, I mean, I think, Tyler, similar to what we've done each of the first 3 quarters, I think November and December for us, generally speaking, is kind of low-single-digit RevPAR growth implied. We'd like to think that we're going to beat that, and so we're a little bit conservative on that front. We do have, obviously, one of our bigger hotels, the Residence Inn San Diego Gaslamp Quarter, has started its renovation. Thankfully, it's kind of in a year where the convention calendar is a little bit down, so timing is a little helpful to us, but I think in general we're going to be a little conservative here for November and December.

One thing we do know, even though it's always a comp year-over-year, is that obviously the 4 Silicon Valley hotels, which have been just fantastic, people do start to check out there as you get into the Thanksgiving holidays, and a lot of those people just really don't come back until after the first of the year and really into February, late January and early February. So we're just going to be a little bit conservative here, and hopefully we outperform it.

Tyler Batory

Okay, that's what I figured, I just wanted to check. And then a multi-part question thinking about 2027—I know visibility still has a ways to go till we get to 2027, but I imagine you're doing budgets and planning for next year. In terms of the industry and the lodging industry overall, I mean, again, the performance this year has been exceptional. And I just wonder if that has legs into next year, or do we start to run into challenging comps and maybe things start to slow? So if you could talk about just your industry perspective, that would be helpful.

And then specific to Chatham, just straightforward, some of the building blocks, renovations, possible disruption, possible outperformance next year. Really just trying to get a baseline of generally how you're thinking about the industry, and then in light of that outlook, how you're positioned to potentially outperform.

Jeffrey Fisher

You want me to take that industry perspective? Well, that's a lot of questions. This is Jeff. I'm not sure we can remember all that, but we'll try, okay? But, relative to 2027, look, I will tell you, because we try to tell it like it is, that some of the outperformance this year, obviously in the industry, has to be attributed to some of the real crappy results the prior year, and some of those external factors, whether they were a couple of government shutdowns and some of the other things that occurred overall in the macro geopolitical. So you do have a scenario on that front that doesn't repeat itself in 2027.

But that being said, I think the underlying strength that everybody is seeing in the business travel segment, which is where we are, as I've said during the prepared comments and otherwise when you look at the composition of our portfolio, really bodes well for us for next year. And look, they can vote to shut down as many government shutdowns as they want to shut down in the future, but I still believe that Silicon Valley has plenty of legs left in it for the work that is going on and for the overall expansion in that segment. I think that with 1/3 of the portfolio, or hopefully getting back to that number for our total EBITDA, would be very accretive, as we indicated, around 10 cents or more in FFO on top of where we are.

And I think I could turn it back over to Dennis to talk about any specific drivers per se going forward.

Dennis Craven

Yeah, Tyler, I mean, listen, I don't know if you happened to catch, but Chris Nassetta was on CNBC this morning. He spoke, and one of his statistics was talking about non-residential fixed investment—NRFI, not exactly no-runs-first-inning gambling bets, but basically saying that it's at its strongest point in decades. And I think one of the things we've talked about here for a good 1.5 years or so is the fact that just with all this capital investment, whether that was from the prior administration with the Infrastructure Act and now what's happened in the last 2 years, there is just a lot of money being spent on manufacturing and other types of things as well around the country.

And as we sit here in Paducah, Kentucky, after going to Effingham yesterday and Joplin, all 6 of our hotels basically had the same thing, which is Monday to Thursday, they're 100% sold out at this stage of that thing. So there's just a lot of activity happening in a lot of these investment areas that are very encouraging, especially for Chatham, given its reliance on, obviously, our tech hub in Silicon Valley, but also just in general our exposure around kind of the Midwest and the Southeast, where a lot of this capital investment is happening. So I think in general that is really where it is, and that's going to be very good for our hotels.

Jeffrey Fisher

And look, with 66% of the hotels being extended-stay hotels, let me not forget the benefit that brings because you could see that kind of business that Dennis is talking about, and a lot of the locations really is more than 1-night, 2-night business. So the length of stay, I think, is important. Those statistics, I think, over as you move through the next couple of years, and I noticed that extended-stay hotels, again, outpaced non-extended-stay hotels on a recent report by Highland, very substantially, and that gap should continue to grow, in my opinion.

It bodes well for all our Homewoods, Residence Inns, our Home2s, those kind of hotels.

Dennis Craven

And lastly, Tyler, you did mention kind of renovation schedules and everything like that as you move into 2027 and in the years after that. We are pretty well lined up here to where it is essentially going to be around 5 hotels per year that will be getting renovated over the next several years. We have the big San Diego Gaslamp Quarter Hotel starting—well, now it's commenced that renovation. If you look forward a year, fourth quarter of next year, kind of from the November to February timeframe, we'll be renovating 1 of our Sunnyvale hotels. The following year after that, we'll be renovating the second of the Sunnyvale hotels, and after that the San Mateo Hotel.

Those are pretty well lined up, at least from a comp perspective, Tyler, that we're not going to be taking multiple of our biggest hotels out at the same time. So it really should have a normalized effect when you look at our comp RevPAR.

Jeffrey Fisher

But just to footnote that, I think you get a lot of ADR growth out of those renovations, particularly in Silicon Valley.

Dennis Craven

Yes, and we haven't spent a lot of time talking about it, but we will in the near future, which is a lot of the improvements we're going to be making to all 4 of those hotels outside of the guest rooms. And that's really exciting in terms of adding some stuff to the hotels and really nice fitness facilities and other facilities, and really enhancing the outdoor spaces and public space of those gatehouses, really to bring those up to experiences that today's traveler is really going to like. So we're excited about that.

Jeffrey Fisher

Okay, we're not getting senile yet anyway. That's good news.

Tyler Batory

A lot of good detail there, so I appreciate it, and I think you hit on all my questions. So I'll leave it there. Thank you.

Jeffrey Fisher

All right. Okay.

Operator

[Operator Instructions]

Ladies and gentlemen, since there are no further questions, I would like to hand the call back over to you for closing remarks. Please go ahead.

Jeffrey Fisher

Well, thank you all for joining today, for those of you that are there or listen later on. And we certainly look forward to maintaining our momentum, our focus, and I think the results will speak for themselves going forward. Thank you.

Operator

Thank you, everyone, and that concludes today's call. You may now all disconnect. Have a nice day ahead. Thank you.

This live transcript is auto-generated without human intervention or review.