Analyst Ari Klein from BMO Capital maintained a Hold rating on Chatham Lodging and keeping the price target at $8.00.
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Ari Klein has given his Hold rating due to a combination of factors impacting Chatham Lodging’s performance. The company’s second-quarter results showed a slight improvement, with revenue per available room (RevPAR) declining less than expected and adjusted funds from operations (FFO) surpassing consensus estimates. However, the earnings before interest, taxes, depreciation, and amortization (EBITDA) figures were softer than anticipated.
Despite maintaining its 2025 guidance, Chatham Lodging faces challenges in the select-service segment, with implied RevPAR growth for the fourth quarter lagging behind its full-service peers. The company’s guidance for the third quarter suggests a modest outlook, with adjusted FFO expected to be slightly above consensus, but EBITDA projections falling short. These mixed indicators contribute to the Hold rating, reflecting a cautious stance amid uncertain demand trends and competitive pressures.