Comparable RevPAR growth in Q2 2025 was 0.1%, driven by a 1.1% increase in rate and an 80 basis point decline in occupancy.
Corporate adjusted EBITDA was $90.5 million and adjusted FFO per share was $0.35.
Food and beverage revenues increased 3.1%, with F&B profit growing over 6% and margins expanding by 105 basis points due to operational improvements.
Free cash flow per share for the trailing 12 months increased approximately 4.5% to $0.63 per share.
Group room revenue increased 0.8%, business transient revenue rose 4.2%, while leisure transient revenue declined 1.6%.
Hotel EBITDA margins contracted 97 basis points overall but would have expanded 30 basis points excluding the Chicago tax increase.
Operating expenses increased 0.7% excluding a large property tax increase in Chicago; wages and benefits rose 3.1%.
Total RevPAR growth was 1.1%, boosted by a 4.2% increase in out-of-room revenues per occupied room, reaching a new quarterly high of $160 per occupied room.
Adjusted operating net income was $53.5 million or $1.25 diluted EPS, reflecting a 1.09% return on assets and 6.99% return on average common equity.
Core deposit growth was strong with non-time deposits up 3.6% year-over-year and 1.6% from the prior quarter.
Expenses increased 1.8% excluding merger costs, driven by salary increases, equity awards, and higher check and fraud losses.
Net interest margin (NIM) was 3.37%, higher than previous guidance due to asset repricing and reduced deposit costs.
Nonperforming loans decreased significantly from $89.5 million to $56.2 million, or 39 basis points of total loans.
Second quarter GAAP net income was $51.1 million with diluted EPS of $1.20, yielding a 1.04% return on assets and 6.68% return on average common equity.
Tangible book value per share increased by $0.99 during the quarter, including a $0.28 benefit from other comprehensive income.
Total loans increased modestly with C&I loans up 3.4% and CRE loans down 1.7%.
Dafinchi