Chatham Lodging (CLDT) AI Stock Analysis

• Market Cap: $368.58M
• Dividend Yield: 5%
• Average Volume (3M): 244.62K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 1.00
• Revenue Growth: -3.79%
• EPS Growth: N/A
• Country: US
• Employees: 17
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): 0.05
• Shares Outstanding: 47,254,036
• 10 Day Avg. Volume: 272,829
• 30 Day Avg. Volume: 244,617
• PEG Ratio: -0.08
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 8.40
• Enterprise Value/Market Cap: 1.89
• Enterprise Value/Revenue: 2.36
• Enterprise Value/Gross Profit: 66.92
• Enterprise Value/Ebitda: 7.49
• 1Y Price Target: $9.00
• Price Target Upside: 15.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.05
• Revenue Forecast (FY): $296.17M

• Rating: 66 Neutral
• Price Target: $9.00 ▲(15.38% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

Overall score is driven primarily by a stable-to-improving financial foundation (deleveraging and solid cash generation) but capped by revenue softness and the sharp 2025 gross margin compression. Technicals are supportive with the stock trading above major moving averages, while valuation is helped by the dividend but offset by a mid-to-higher P/E. Guidance and recent corporate actions (accretive acquisition, continued buybacks/dividend growth) are net positive but reflect a cautious top-line outlook.

Positive Factors

Deleveraging / Balance‑Sheet Strength

Meaningful deleveraging and a lower leverage ratio materially increase capital flexibility. With reduced debt burdens and a record financing capacity, the REIT can fund accretive deals, sustain distributions, buy back stock, or absorb cyclical lodging downturns without urgent refinancing pressure.

Consistent Cash Generation and Positive FCF

Stable operating cash flow and growing free cash flow underpin sustainable dividends, buybacks, and debt reduction. Cash-backed earnings reduce reliance on asset sales for liquidity and enable disciplined capital recycling, improving long-term financial resilience and optionality.

Operational Efficiency / Peer‑Leading Margins

Sustained expense control and superior margin performance are durable competitive advantages in lodging. Higher GOP and hotel EBITDA margins support FFO even when revenue lags, enabling the company to defend distributions and preserve earnings through cyclical RevPAR pressure.

Negative Factors

Top‑Line Weakness and Conservative RevPAR Guidance

Sustained weakness in RevPAR curbs revenue and limits operating leverage for a lodging REIT. Conservative guidance across key markets implies slower recovery, reducing visibility on FFO growth and constraining the pace at which higher fixed costs and capital investments can be absorbed.

Sharp Gross‑Margin Compression and One‑Time Items

A dramatic gross‑margin drop and reliance on one-off tax/refund benefits weaken the repeatability of reported profits. If margins normalize lower or one-time boosts disappear, sustainable EBITDA and FFO could be meaningfully lower, stressing cash available for capital recycling or payouts.

Low Return on Equity

A low ROE indicates the company’s equity base generates minimal incremental profitability, limiting long-term shareholder value creation. Even with stronger cash flow and lower leverage, subpar ROE signals constrained returns from assets and potential inefficiencies in capital deployment.

Chatham Lodging Business Overview & Revenue Model

Company Description

Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. At September, 30, 2020, The company owns interests in 86 hotels totaling 12,040 rooms/suites, comprised of 40 properties it wholly owns with an aggregate of 6,092 rooms/suites in 15 states and the District of Columbia and a minority investment in the Innkeepers joint ventures that owns 46 hotels with an aggregate of 5,948 rooms/suites.

How the Company Makes Money

Chatham Lodging generates revenue primarily through the operation of its hotel properties, which provide lodging services to guests. The company earns income from room rentals, as well as ancillary services such as food and beverage sales, meeting room rentals, and other guest services. Chatham benefits from long-term leases with hotel management companies that operate its properties, allowing for stable cash flows. Additionally, the company may realize revenue from property sales or refinancing activities. Strategic partnerships with renowned hotel brands help drive occupancy rates, ensuring a steady stream of income, while the company's focus on the extended-stay segment caters to a growing market of travelers seeking longer-term accommodations.

Chatham Lodging Financial Statement Overview

Summary

Financials show post-pandemic recovery with improving leverage (debt-to-equity down to ~0.51) and healthy operating/free cash flow (2025 OCF ~$64.1M; positive FCF with growth). Offsetting this are weak-to-negative recent revenue growth and a sharp 2025 gross margin compression (~3.5%), plus low ROE (~2%), which temper overall quality.

Income Statement

Profitability has improved materially versus the 2020–2021 loss period, with 2025 showing solid operating performance (EBIT margin ~13.9% and EBITDA margin ~34.1%) and net income of ~$15.1M. However, the 2025 gross profit margin collapsed to ~3.5% (far below ~35–38% in prior years), which raises questions about cost pressure or one-time items. Revenue growth is also weak to negative recently (2025 down ~2.4% after modest growth in 2023–2024), limiting operating leverage despite better earnings.

Balance Sheet

Leverage is moderate and trending better: debt-to-equity improved from ~1.13 (2020) to ~0.51 (2025) as total debt declined. Equity remains sizable (~$741M in 2025) against ~$1.17B of assets, supporting balance-sheet stability. The main weakness is still-low returns on equity (about ~2.0% in 2025 and near-zero in 2023–2024), indicating the capital base is not generating strong profitability for a full cycle.

Cash Flow

Cash generation is a relative strength: operating cash flow was positive and healthy in 2022–2025 (about ~$64.1M in 2025) and free cash flow remained positive with strong growth in 2025 (~15.6%). Free cash flow also roughly matched net income in recent years (around ~1.0x), suggesting earnings are backed by cash. Offsetting this, operating cash flow coverage appears inconsistent across years (and is reported as 0.0 in 2025), which introduces uncertainty around how comfortably cash flow supports obligations in the most recent period.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	295.07M	317.21M	311.11M	294.85M	203.97M
Gross Profit	10.38M	111.22M	110.93M	111.56M	59.13M
EBITDA	100.72M	94.25M	86.66M	95.67M	58.46M
Net Income	15.05M	4.17M	2.64M	9.80M	-18.41M
Balance Sheet
Total Assets	1.17B	1.25B	1.34B	1.34B	1.41B
Cash, Cash Equivalents and Short-Term Investments	32.64M	20.20M	68.13M	26.27M	19.19M
Total Debt	358.98M	427.48M	504.88M	491.99M	566.99M
Total Liabilities	392.33M	462.68M	539.55M	525.74M	596.51M
Stockholders Equity	740.80M	758.22M	776.06M	794.89M	797.50M
Cash Flow
Free Cash Flow	39.56M	73.13M	76.44M	71.53M	19.27M
Operating Cash Flow	64.08M	73.83M	76.44M	71.53M	28.78M
Investing Cash Flow	45.37M	-29.17M	-28.11M	29.96M	-101.94M
Financing Cash Flow	-106.65M	-100.56M	-7.73M	-86.21M	71.58M

Chatham Lodging Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLDT, the sentiment is Positive. The current price of 7.8 is above the 20-day moving average (MA) of 7.71, above the 50-day MA of 7.39, and above the 200-day MA of 6.99, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 54.23 is Neutral, neither overbought nor oversold. The STOCH value of 27.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CLDT.

Chatham Lodging Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLDT	66 Neutral	$368.58M	22.07	1.13%	5.00%	-3.79%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
INN	54 Neutral	$521.34M	-65.40	-0.56%	6.61%	-1.20%	-328.23%
SVC	53 Neutral	$361.33M	-1.51	-29.70%	2.31%	-0.56%	-14.18%
AHT	46 Neutral	$20.92M	-0.14	56.27%	―	-7.89%	-833.99%
BHR	45 Neutral	$175.13M	-1.46	-4.39%	7.17%	-2.84%	-11.92%

Chatham Lodging Corporate Events

Chatham Lodging Expands Portfolio With Six-Hotel Acquisition

On March 3, 2026, Chatham Lodging Trust completed a $92 million acquisition of six Hilton-branded hotels totaling 589 rooms across Joplin, Mo., Effingham, Ill., and Paducah, Ky., funded with cash and its revolving credit facility. The portfolio, skewed 66 percent to extended-stay and averaging 10 years in age, is expected to be accretive, with 2025 hotel EBITDA of about $10 million, higher RevPAR and margins than recently sold assets, and an implied 10 percent cap rate that modestly lifts net debt to EBITDA while aligning with Chatham’s strategic recycling into newer, higher-margin properties.

Alongside the deal, Chatham raised its quarterly common dividend 11 percent to $0.10 per share for shareholders of record on March 31, 2026, marking a second straight year of double-digit increases. Management highlighted moderating labor cost pressures, favorable demand trends from U.S. reshoring and infrastructure corridors in the acquired markets, and ongoing share repurchases as multiple levers to grow free cash flow and enhance shareholder returns, underscoring renewed acquisition activity after nearly a two-year pause.

The most recent analyst rating on (CLDT) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Chatham Lodging stock, see the CLDT Stock Forecast page.

Chatham Lodging Sets Date for 2026 Annual Meeting

Chatham Lodging Trust announced on February 20, 2026, that its Board of Trustees has scheduled the 2026 annual meeting of shareholders for May 12, 2026, at 10:00 a.m. EDT at the company’s corporate offices in West Palm Beach, Florida. The record date to determine shareholders entitled to receive notice of and vote at the meeting has been set as the close of business on March 16, 2026, signaling the formal start of this year’s governance and shareholder engagement cycle for the REIT.

The timing and location of the annual meeting underscore Chatham’s adherence to a predictable corporate governance calendar, which may be relevant to investors monitoring board oversight and strategic direction in the hotel REIT sector. By defining the record date nearly two months ahead of the meeting, the company provides clarity for existing and prospective shareholders on participation rights in this key corporate event.

The most recent analyst rating on (CLDT) stock is a Buy with a $8.50 price target. To see the full list of analyst forecasts on Chatham Lodging stock, see the CLDT Stock Forecast page.