Chatham Lodging (CLDT)
NYSE:CLDT
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Chatham Lodging
(NYSE:CLDT)
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Rating:66Neutral
Price Target:
$9.00
▲(4.65% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Chatham Lodging (CLDT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$406.38M
Dividend Yield5%
Average Volume (3M)244.62K
Price to Earnings (P/E)22.1
Beta (1Y)1.00
Revenue Growth-3.79%
EPS GrowthN/A
CountryUS
Employees17
SectorReal Estate
Sector Strength53
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)0.05
Shares Outstanding47,254,036
10 Day Avg. Volume272,829
30 Day Avg. Volume244,617
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)0.45
Price to Sales (P/S)1.13
P/FCF Ratio8.40
Enterprise Value/Market Cap1.80
Enterprise Value/Revenue2.48
Enterprise Value/Gross Profit70.56
Enterprise Value/Ebitda7.89
Forecast
1Y Price Target
$9.00Price Target Upside4.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.05
Revenue Forecast (FY)$296.17M
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...
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...
Chatham Lodging Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously positive tone: management emphasized strong operational execution, tight expense control, significant balance sheet improvement (net debt down ~$70M, leverage ~20%), active share repurchases, and materially increased shareholder returns (28% dividend hike). These positives offset top-line softness in several markets, one-time 2025 benefits that won't repeat, and conservative revenue guidance for 2026. Overall, the company’s financial and operational achievements and capital allocation flexibility outweigh the revPAR headwinds and market-specific challenges.Positive Updates
Strong Expense Control and Margins
Q4 GOP margin of 40.2% (only down ~30 bps YoY in Q4) and hotel EBITDA margin of 33.2% in Q4 (up ~70 bps driven partly by $550k property tax refunds); full-year GOP margin decline was limited to ~40 bps despite revenue pressure, reflecting tight cost control and productivity gains.
Negative Updates
Top-Line Pressure and RevPAR Declines
Company RevPAR showed pressure in latter 2025 with Q4 RevPAR down ~1.8% and several markets with notable declines; full-year RevPAR showed a mixed cadence and 2026 RevPAR guidance is conservative at -0.5% to +1.5%.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Expense Control and Margins
Q4 GOP margin of 40.2% (only down ~30 bps YoY in Q4) and hotel EBITDA margin of 33.2% in Q4 (up ~70 bps driven partly by $550k property tax refunds); full-year GOP margin decline was limited to ~40 bps despite revenue pressure, reflecting tight cost control and productivity gains.
Read all positive updates
Company Guidance
The company guided 2026 RevPAR of -0.5% to +1.5%, adjusted EBITDA of $84.0M–$89.0M, and adjusted FFO per share of $1.04–$1.14 (excluding noncash stock‑based compensation effective 01/01/2026); management expects Q1 RevPAR to be low single digits then positive for the rest of the year, and noted guidance assumes SOFR will decline (the company has $200M of floating‑rate debt so quarterly interest expense is modeled to fall). Guidance excludes any share repurchases or acquisitions (management intends to continue repurchases and expects to use most or all of the $25M plan), and reflects that 2025 included ~$2.6M of one‑time tax/refund benefits not expected to repeat and ~$2.1M of EBITDA from assets sold in 2025 (four asset sales totaling $71.4M, including Homewood Billerica for $17.4M). Additional planning metrics: 2026 CapEx is ~ $26M (Q4 CapEx was ~$4M), property‑insurance renewals projected to decline ~15% same‑store in 2026, and balance‑sheet actions in 2025 reduced net debt by ~$70M and leverage to ~20% (vs ~35% in 2019) while completing a financing with ~$5.0B total capacity. Market‑level RevPAR expectations communicated were: Silicon Valley +3%–5%, Los Angeles -1%–3%, Coastal Northeast flat–+2% (Greater NY flat), DC +2%–4%, San Diego down slightly, Dallas down mid‑single digits, and Bellevue mid to upper single digits.Chatham Lodging Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
67
Positive
| 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
Positive
8.60
Price Trends
7.64
Positive
7.17
Positive
6.93
Positive
Market Momentum
0.21
Negative
72.57
Negative
88.55
Negative
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 8.6 is above the 20-day moving average (MA) of 7.86, above the 50-day MA of 7.64, and above the 200-day MA of 6.93, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 72.57 is Negative, neither overbought nor oversold. The STOCH value of 88.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CLDT.
Chatham Lodging Risk Analysis
Chatham Lodging disclosed 1 risk factors in its most recent earnings report. Chatham Lodging reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
Chatham Lodging Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $406.38M | 22.07 | 1.13% | 5.00% | -3.79% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
54 Neutral | $577.37M | -65.40 | -0.63% | 6.61% | -1.20% | -328.23% | |
46 Neutral | $736.75M | -1.51 | -29.70% | 2.31% | -0.56% | -14.18% | |
45 Neutral | $170.32M | -8.70 | -4.39% | 7.17% | -2.84% | -11.92% | |
42 Neutral | $18.13M | -0.14 | 56.27% | ― | -7.89% | -833.99% |
* Real Estate Sector Average
CLDT
Chatham Lodging
8.60
2.25
35.39%
INN
Summit Hotel Properties
4.74
0.97
25.83%
SVC
Service Properties
1.26
-0.58
-31.34%
AHT
Ashford Hospitality
2.80
-2.89
-50.79%
BHR
Braemar Hotels & Resorts
2.48
0.59
31.43%
Chatham Lodging Corporate Events
Business Operations and StrategyStock BuybackDividendsM&A Transactions
Chatham Lodging Expands Portfolio With Six-Hotel Acquisition
Positive
Mar 6, 2026
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, s...
Shareholder Meetings
Chatham Lodging Sets Date for 2026 Annual Meeting
Neutral
Feb 20, 2026
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 re...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.