Core Insights - The company reported a net loss of $11.3 million for Q3 2025, compared to a loss of $4.3 million in Q3 2024, reflecting ongoing challenges in the hospitality sector [6][7][30] - The company completed the sale of two hotels for $39 million, achieving a blended capitalization rate of 4.3%, as part of its capital recycling strategy [3][11][12] - The company expects a sequential improvement in operating trends for Q4 2025, despite a challenging environment characterized by reduced government demand and slower international travel [2][19] Financial Performance - Total revenues for Q3 2025 were $177.1 million, slightly up from $176.8 million in Q3 2024 [8][30] - Same store RevPAR decreased by 3.7% to $115.77 in Q3 2025 compared to Q3 2024, while pro forma RevPAR decreased by 4.2% to $116.57 [7][8] - Adjusted EBITDAre for Q3 2025 was $39.3 million, down from $45.3 million in Q3 2024 [8][30] Balance Sheet and Capital Management - The company refinanced a $400 million term loan at a lower interest rate, enhancing its balance sheet and extending debt maturities until 2030 [3][15][19] - As of September 30, 2025, the company had total outstanding debt of $1.1 billion with a weighted average interest rate of 4.52% [25] - The company declared a quarterly cash dividend of $0.08 per share, representing an annualized yield of 6.1% [17][18] Market Outlook - The company anticipates Q4 2025 RevPAR growth to range from -2.0% to -2.5%, reflecting ongoing price sensitivity and macroeconomic volatility [19] - The long-term outlook remains positive due to a lack of new supply growth in the industry [2][19]