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Chatham Lodging (CLDT)
NYSE:CLDT
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Chatham Lodging
(NYSE:CLDT)
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Rating:61Neutral
Price Target:
$7.50
▲(7.60% Upside)
Chatham Lodging's overall stock score reflects a mixed financial performance with stable profitability but revenue growth challenges. The technical analysis suggests caution due to mixed signals, while the valuation indicates the stock may be overvalued. The earnings call provided positive insights with successful strategic initiatives, which help offset some of the financial and valuation concerns.
Positive Factors
Strong Balance Sheet
A strong balance sheet with reduced leverage enhances financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.
Successful Hotel Sales
The strategic sale of underperforming assets strengthens the portfolio, improves overall RevPAR, and provides capital for reinvestment or debt reduction.
Operational Performance
High occupancy and strong RevPAR indicate effective management and market recovery, supporting sustained revenue and profitability improvements.
Negative Factors
Revenue Growth Challenges
Negative revenue growth suggests difficulties in expanding market share or pricing power, potentially impacting long-term profitability and competitive positioning.
Decline in RevPAR in Certain Markets
Declining RevPAR in key markets can signal competitive pressures or demand weakness, affecting revenue and profitability in those regions.
Increase in Guest Acquisition Costs
Rising acquisition costs can erode profit margins, necessitating improved cost management or pricing strategies to maintain profitability.
Chatham Lodging (CLDT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$343.83M
Dividend Yield4.59%
Average Volume (3M)285.15K
Price to Earnings (P/E)264.9
Beta (1Y)1.18
Revenue Growth-0.87%
EPS GrowthN/A
CountryUS
Employees17
SectorReal Estate
Sector Strength53
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)0.07
Shares Outstanding48,978,565
10 Day Avg. Volume327,838
30 Day Avg. Volume285,154
Financial Highlights & Ratios
PEG Ratio-3.85
Price to Book (P/B)0.58
Price to Sales (P/S)1.38
P/FCF Ratio5.99
Enterprise Value/Market Cap2.18
Enterprise Value/Revenue2.41
Enterprise Value/Gross Profit7.48
Enterprise Value/Ebitda15.62
Forecast
1Y Price Target
$7.75Price Target Upside11.19% Upside
Rating ConsensusHold
Number of Analyst Covering2
Chatham Lodging Business Overview & Revenue Model
Company DescriptionChatham 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 MoneyChatham 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 Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
Chatham Lodging Trust's earnings call highlighted several positive aspects, including successful hotel sales, a strong balance sheet, and improved operational performance in key markets like Silicon Valley and Pittsburgh. However, challenges were noted with declines in RevPAR in certain markets and increased guest acquisition costs. Overall, the positive developments and strategic initiatives outweigh the challenges encountered.Q2-2025 Updates
Positive Updates
Successful Sale of Hotels
Chatham Lodging Trust completed the sale of 5 hotels for $83 million at a 6% capitalization rate on 2024 NOI levels, which were among the 6 lowest RevPAR hotels in the portfolio.
Share Buyback Program
The Board of Trustees approved a $25 million share buyback plan in May, and approximately 20,000 shares were repurchased during the quarter at a weighted average price of $7.02.
Strong Balance Sheet
The company's leverage was reduced to 21%, and it is projected to generate almost $20 million of free cash flow in 2025 after dividends.
Operational Performance
Second quarter occupancy reached a post-pandemic high of 82% with RevPAR and FFO per share at the top of the guidance range. Additionally, RevPAR growth in May and June led to flat RevPAR for the quarter.
Silicon Valley Market Recovery
The largest market, Silicon Valley, showed recovery to pre-pandemic levels with all 4 hotels reaching 80% occupancy. RevPAR growth at these hotels was 3% for the quarter.
Successful Cost Management
Gross operating profit margins increased by 30 basis points year-over-year, aided by effective expense control and a $800,000 workers' compensation-related refund.
Pittsburgh Performance
Pittsburgh experienced a significant RevPAR growth of 23% in the second quarter, achieving its highest second quarter RevPAR of $161, driven by several special events.
Negative Updates
Decline in RevPAR in Certain Markets
RevPAR was down in markets like Austin, Dallas, and San Diego due to weak convention demand, with Austin experiencing a 14% decline in the quarter.
Reduced Canadian Travel Impact
Seattle, including Bellevue, faced reduced Canadian travel, with RevPAR down 4% in the second quarter, as automobile border crossings were down 47%.
Increase in Guest Acquisition Costs
Guest acquisition-related commission costs increased by approximately 15%, impacting margins by 30 basis points due to changes in booking channels.
Company Guidance
During the Chatham Lodging Trust's second quarter 2025 financial results conference call, key guidance metrics included the completion of five hotel sales for $83 million at a 6% capitalization rate based on 2024 NOI levels, reducing portfolio RevPAR with the sale of lower-performing hotels. The company announced a share buyback plan worth $25 million, repurchasing approximately 20,000 shares at $7.02 each. Second-quarter occupancy was reported at 82%, matching the previous year's post-pandemic high, with RevPAR and FFO per share reaching the top of their guidance range. Projections for 2025 included generating nearly $20 million in free cash flow after dividends and maintaining a leverage ratio of 3.5x net debt to EBITDA. The company anticipates RevPAR growth of flat to 1% for the full year, with adjusted EBITDA between $89 million and $93 million and adjusted FFO per share ranging from $0.95 to $1.03.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.65
Positive
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.70
Positive
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.60
Neutral
| 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
Negative
6.97
Price Trends
7.15
Negative
7.11
Negative
7.52
Negative
Market Momentum
-0.07
Positive
39.14
Neutral
38.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLDT, the sentiment is Negative. The current price of 6.97 is below the 20-day moving average (MA) of 7.23, below the 50-day MA of 7.15, and below the 200-day MA of 7.52, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 39.14 is Neutral, neither overbought nor oversold. The STOCH value of 38.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLDT.
Chatham Lodging Risk Analysis
Chatham Lodging disclosed 61 risk factors in its most recent earnings report. Chatham Lodging reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Chatham Lodging Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | 683.40M | -46.71 | 4.80% | 5.70% | -1.91% | -256.67% | |
61 Neutral | $343.83M | 264.91 | 1.22% | 4.59% | -0.87% | ― | |
58 Neutral | 191.01M | -3.65 | -0.08% | 7.14% | -3.68% | 38.92% | |
49 Neutral | 458.25M | -1.64 | -32.34% | 1.45% | -0.23% | -38.68% | |
47 Neutral | 33.28M | -2.46 | 3.65% | ― | 1.78% | -33.00% | |
42 Neutral | 35.57M | -0.12 | 82.36% | ― | -11.83% | -4186.83% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
Performance Comparison
CLDT
Chatham Lodging
6.97
-1.31
-15.82%
INN
Summit Hotel Properties
5.61
-0.88
-13.56%
SVC
Service Properties
2.75
-2.02
-42.35%
AHT
Ashford Hospitality
5.80
-1.70
-22.67%
BHR
Braemar Hotels & Resorts
2.80
-0.26
-8.50%
SOHO
Sotherly Hotels
0.81
-0.41
-33.61%
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.