Chatham Lodging (CLDT) AI Stock Analysis

• Market Cap: $368.81M
• Dividend Yield: 4.25%
• Average Volume (3M): 252.50K
• Price to Earnings (P/E): 284.1
• Beta (1Y): 1.22
• Revenue Growth: -0.87%
• EPS Growth: N/A
• Country: US
• Employees: 17
• Sector: Real Estate
• Sector Strength: 49
• Industry: REIT - Hotel & Motel
• EPS (TTM): 0.07
• Shares Outstanding: 48,978,565
• 10 Day Avg. Volume: 329,947
• 30 Day Avg. Volume: 252,498
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.03
• Enterprise Value/Revenue: 2.41
• Enterprise Value/Gross Profit: 7.48
• Enterprise Value/Ebitda: 15.62
• 1Y Price Target: $8.00
• Price Target Upside: 6.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: $8.00 ▲(6.24% Upside)

Chatham Lodging's overall stock score reflects a stable financial position with profitability and efficient cash generation, despite challenges in revenue growth. Technical analysis indicates bullish momentum, but the high P/E ratio raises valuation concerns. Positive earnings call highlights and strategic initiatives further support the stock's potential, although market-specific challenges remain.

Positive Factors

Financial Performance

Adjusted FFO of $0.36 topped consensus estimates, indicating better performance.

Revenue

Revenue was slightly above consensus estimates, showcasing stronger-than-expected sales.

Stock Value

CLDT announced its first share repurchase program, indicating confidence in its stock value.

Negative Factors

Demand Challenges

July performance was soft, with RevPAR declining, suggesting challenges in demand.

Guidance

CLDT lowered its 2025 guidance, with its RevPAR outlook reduced.

Profitability

Hotel EBITDA margins fell slightly and were below expectations, indicating potential profitability concerns.

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 leasing and operation of its hotel properties. The company's key revenue streams include room rentals, food and beverage sales, and other ancillary services provided to guests. By focusing on upscale extended-stay hotels, Chatham benefits from higher average daily rates (ADR) and longer occupancy durations compared to traditional hotels. The company also engages in partnerships with established hotel brands, which enhances its market presence and credibility. Additionally, Chatham's revenues are influenced by occupancy rates and market demand, as well as its ability to manage operating expenses effectively.

Chatham Lodging Financial Statement Overview

Summary

Chatham Lodging's financial performance is mixed. The income statement shows profitability with stable margins but faces revenue growth challenges. The balance sheet is strong with reduced leverage and a solid capital structure. Cash flow analysis indicates efficient cash generation despite a decline in free cash flow growth. Overall, the company is financially stable but needs to address revenue growth to enhance its financial position.

Income Statement

Chatham Lodging's income statement shows a mixed performance. The TTM gross profit margin is healthy at 32.16%, although it has decreased from the previous year. The net profit margin has improved to 3.01% from 1.31% in the previous year, indicating better cost management. However, revenue growth is negative at -2.03%, reflecting a decline in sales. EBIT and EBITDA margins are stable, suggesting operational efficiency. Overall, the company demonstrates profitability but faces challenges in revenue growth.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.52, showing a decrease from the previous year, indicating reduced leverage. Return on equity is modest at 1.24%, suggesting limited profitability from equity investments. The equity ratio is strong, indicating a solid capital structure. Overall, the company maintains a stable balance sheet with manageable debt levels.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth at -4.71%, indicating challenges in generating cash. However, the operating cash flow to net income ratio is strong at 2.01, suggesting efficient cash generation from operations. The free cash flow to net income ratio is 1.15, indicating good cash conversion. Despite the decline in free cash flow growth, the company maintains healthy cash flow ratios, reflecting operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	310.97M	317.21M	311.11M	294.85M	203.97M	144.92M
Gross Profit	100.00M	111.22M	110.93M	111.56M	59.13M	22.33M
EBITDA	47.91M	92.50M	86.66M	95.02M	58.46M	3.83M
Net Income	9.37M	4.17M	2.64M	-16.78M	-40.93M	-92.34M
Balance Sheet
Total Assets	1.19B	1.25B	1.34B	1.34B	1.41B	1.37B
Cash, Cash Equivalents and Short-Term Investments	17.17M	20.20M	68.13M	26.27M	19.19M	21.12M
Total Debt	392.19M	427.48M	504.88M	491.99M	566.99M	632.00M
Total Liabilities	405.36M	462.68M	539.55M	525.74M	596.51M	677.80M
Stockholders Equity	754.09M	758.22M	776.06M	794.89M	797.50M	677.75M
Cash Flow
Free Cash Flow	78.11M	73.13M	76.44M	55.87M	19.27M	-34.45M
Operating Cash Flow	68.01M	73.83M	76.44M	71.53M	28.78M	-19.96M
Investing Cash Flow	53.36M	-29.17M	-28.11M	29.96M	-101.94M	26.81M
Financing Cash Flow	-122.85M	-100.56M	-7.73M	-86.21M	71.58M	4.43M

Chatham Lodging Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 7.53 is above the 20-day moving average (MA) of 7.25, above the 50-day MA of 7.16, and below the 200-day MA of 7.67, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 59.54 is Neutral, neither overbought nor oversold. The STOCH value of 68.47 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
INN	68 Neutral	$667.56M	41.24	0.93%	5.93%	-1.91%	-256.67%
CLDT	65 Neutral	$368.81M	284.15	1.22%	4.25%	-0.87%	―
BHR	65 Neutral	$188.29M	―	-0.07%	7.25%	-3.68%	38.92%
Sector *	63 Neutral	$6.95B	13.72	-0.50%	6.99%	4.08%	-25.24%
SOHO	54 Neutral	$29.87M	―	3.37%	―	1.78%	-33.00%
SVC	49 Neutral	$449.92M	―	-32.60%	1.47%	-0.23%	-38.68%
AHT	44 Neutral	$36.73M	―	-25.85%	―	-11.83%	-4186.83%

Chatham Lodging Corporate Events

Chatham Lodging Shareholders Approve Key Proposals at Meeting

On May 6, 2025, Chatham Lodging Trust held its Annual Meeting of Shareholders where key decisions were made, including the election of trustees, ratification of the accounting firm, approval of executive compensation, and an amendment to the Equity Incentive Plan. All proposals were passed with significant support, reflecting strong shareholder confidence in the company’s governance and strategic direction.

Chatham Lodging Launches $25 Million Share Buyback Program

Chatham Lodging Trust announced its first quarter 2025 results, showing a 4% increase in RevPAR to $127, while occupancy rose to 72%. Despite a net loss of $1 million, the company improved from a $7 million loss in the same period last year. The company also initiated its first-ever $25 million share repurchase program, reflecting confidence in its financial strategy and commitment to enhancing shareholder value. The company raised its quarterly dividend by 29% and completed the sale of five hotels for $83 million, indicating a strategic shift in asset management.