Chatham Lodging (CLDT) AI Stock Analysis

• Market Cap: $359.05M
• Dividend Yield: 4.91%
• Average Volume (3M): 257.51K
• Price to Earnings (P/E): 127.3
• Beta (1Y): 1.14
• Revenue Growth: 1.75%
• EPS Growth: N/A
• Country: US
• Employees: 17
• Sector: Real Estate
• Sector Strength: 63
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.01
• Shares Outstanding: 48,984,250
• 10 Day Avg. Volume: 231,957
• 30 Day Avg. Volume: 257,512
• PEG Ratio: 0.59
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.72
• Enterprise Value/Market Cap: 2.96
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 10.30
• Enterprise Value/Ebitda: 2.87
• 1Y Price Target: $9.17
• Price Target Upside: 26.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: $8.00 ▲(10.65%Upside)

Chatham Lodging's overall score of 71 reflects solid financial performance and strategic initiatives that enhance shareholder value. However, valuation concerns due to a high P/E ratio and economic uncertainties limit the upside potential.

Positive Factors

Earnings Performance

4Q results beat with adjusted FFO/EBITDA of $0.20/$21.1mm topping consensus of $0.16/$20.0mm.

Stock Repurchase

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

Negative Factors

Cost Pressures

Hotel EBITDA margins fell year-over-year, indicating potential cost pressures.

Future Guidance

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

Chatham Lodging Business Overview & Revenue Model

Company Description

Chatham Lodging Trust (CLDT) is a real estate investment trust (REIT) that specializes in investing in upscale extended-stay hotels and premium-branded select service hotels. The company is primarily focused on properties located in major markets across the United States, targeting business and leisure travelers seeking high-quality accommodations with added conveniences. Chatham Lodging's portfolio comprises well-known brands like Hilton and Marriott, offering a consistent and reliable experience to its guests.

How the Company Makes Money

Chatham Lodging Trust generates revenue primarily through the ownership and operation of its hotel properties. The company's main revenue stream comes from room bookings, which are driven by occupancy rates and average daily rates (ADR). Additional income is derived from ancillary services offered at these hotels, such as food and beverage sales, parking fees, and meeting space rentals. As a REIT, Chatham Lodging also benefits from tax advantages, as they are required to distribute a significant portion of their taxable income to shareholders in the form of dividends. Strategic partnerships with major hotel brands like Hilton and Marriott help ensure a steady flow of guests to their properties, bolstering occupancy rates and enhancing revenue potential.

Chatham Lodging Financial Statement Overview

Summary

Chatham Lodging has demonstrated consistent revenue growth and improved profitability, with strong cash flow generation. While there are past challenges, particularly with leverage and profitability issues in 2021, the current trajectory is positive.

Income Statement

Chatham Lodging has shown consistent revenue growth over the years, with a notable increase from 2021 to 2025. The Gross Profit Margin is healthy, indicating efficient cost management, while the Net Profit Margin has improved significantly, reflecting enhanced profitability. The EBIT and EBITDA margins are also robust, suggesting strong operational performance. However, the company experienced negative EBIT in 2021, indicating past operational challenges.

Balance Sheet

The Debt-to-Equity Ratio indicates a moderate level of leverage, which is typical for the REIT industry. The Return on Equity has improved over the years, driven by rising net income, but was negative in 2021 and 2022, suggesting past profitability issues. The Equity Ratio is stable, reflecting a balanced financial structure, though the total debt remains substantial, which could pose risks if not managed well.

Cash Flow

Chatham Lodging's cash flow position is strong, with consistent positive Free Cash Flow, indicating good cash generation capabilities. The Free Cash Flow Growth Rate is positive, showcasing effective cash management and investment strategies. The Operating Cash Flow to Net Income Ratio is healthy, suggesting efficient conversion of income into cash. However, fluctuations in investing and financing cash flows highlight potential volatility in cash management practices.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
317.40M	317.21M	311.11M	294.85M	203.97M	144.92M
	Gross Profit
103.34M	111.22M	110.93M	111.56M	59.13M	22.33M
	EBIT
40.54M	33.22M	28.61M	36.45M	-12.54M	-43.10M
	EBITDA
99.19M	92.50M	86.66M	95.02M	58.46M	3.83M
	Net Income Common Stockholders
10.89M	4.17M	2.64M	-16.78M	-40.93M	-92.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.59M	20.20M	68.13M	26.27M	19.19M	21.12M
	Total Assets
1.23B	1.25B	1.34B	1.34B	1.41B	1.37B
	Total Debt
401.56M	427.48M	504.88M	491.99M	566.99M	632.00M
	Net Debt
382.97M	407.29M	436.75M	465.72M	547.80M	610.88M
	Total Liabilities
437.43M	462.68M	539.55M	525.74M	596.51M	677.80M
	Stockholders Equity
754.70M	758.22M	776.06M	794.89M	797.50M	677.75M
Cash Flow		Free Cash Flow
81.96M	73.13M	76.44M	55.87M	19.27M	-34.45M
	Operating Cash Flow
71.12M	73.83M	76.44M	71.53M	28.78M	-19.96M
	Investing Cash Flow
-12.73M	-29.17M	-28.11M	29.96M	-101.94M	26.81M
	Financing Cash Flow
-124.70M	-100.56M	-7.73M	-86.21M	71.58M	4.43M

Chatham Lodging Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.23
• 50DMA: Positive
• 100DMA: Negative
• 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 7.23 is above the 20-day moving average (MA) of 7.13, above the 50-day MA of 6.96, and below the 200-day MA of 8.05, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 54.89 is Neutral, neither overbought nor oversold. The STOCH value of 74.94 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	71 Outperform	$359.05M	127.26	1.42%	4.91%	1.75%	―
BHR	67 Neutral	$167.62M	―	-0.90%	8.00%	-2.42%	23.64%
SOHO	67 Neutral	$34.86M	―	9.72%	―	3.82%	18.62%
INN	64 Neutral	$602.33M	37.93	4.45%	6.81%	-1.86%	―
Sector *	61 Neutral	$2.86B	10.96	0.41%	6.08%	5.73%	-21.25%
SVC	54 Neutral	$413.26M	―	-33.91%	1.61%	0.78%	-128.16%
AHT	44 Neutral	$35.81M	―	-25.85%	―	-14.65%	-55.62%

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.

Chatham Lodging Trustee Robert Perlmutter Announces Retirement

On March 17, 2025, Robert Perlmutter, an independent trustee of Chatham Lodging Trust, announced his decision to retire from the board at the end of his current term and not seek reelection at the company’s annual meeting later this year. His decision was not due to any disagreement with the company.