Chatham Lodging (CLDT)
NYSE:CLDT
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Chatham Lodging
(NYSE:CLDT)
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Rating:67Neutral
Price Target:
$14.00
▲(60.18% Upside)
Action:Downgraded
Date:06/13/26
The score is driven by solid cash generation and a positive, guidance-raising earnings call with capital returns and an accretive acquisition. These are tempered by weak recent revenue trends and thin/uneven net profitability, an expensive P/E valuation, and technically overbought momentum despite a strong trend.
Positive Factors
Strong free cash flow generation
Sustained, high free cash flow provides durable internal funding for dividends, buybacks, and accretive acquisitions without heavy equity issuance. That cash-conversion supports capital returns and reinvestment flexibility and cushions earnings cyclicality over the next several quarters.
Negative Factors
Steep recent revenue decline
A large TTM revenue decline erodes operating leverage and compresses FFO sensitivity; even with good cash conversion, persistent top-line weakness can pressure margins, reduce funds available for growth or distributions, and amplify vulnerability to market cycles over the coming 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained, high free cash flow provides durable internal funding for dividends, buybacks, and accretive acquisitions without heavy equity issuance. That cash-conversion supports capital returns and reinvestment flexibility and cushions earnings cyclicality over the next several quarters.
Read all positive factors
Chatham Lodging (CLDT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$591.92M
Dividend Yield5%
Average Volume (3M)244.62K
Price to Earnings (P/E)65.9
Beta (1Y)1.00
Revenue Growth-7.39%
EPS Growth-69.66%
CountryUS
Employees17
SectorReal Estate
Sector Strength53
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)0.06
Shares Outstanding46,681,220
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 Cap1.58
Enterprise Value/Revenue3.19
Enterprise Value/Gross Profit11.58
Enterprise Value/Ebitda10.11
Forecast
1Y Price Target
$12.33Price Target Upside41.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.14
Revenue Forecast (FY)$312.99M
Chatham Lodging Business Overview & Revenue Model
Company Description
Chatham Lodging Trust operates as a self-managed, publicly traded real estate investment trust (REIT) primarily concentrating its investments on upscale extended-stay hotels and premium-branded select-service properties. As of September 30, 2020, ...
How the Company Makes Money
CLDT makes money primarily by earning hotel-level operating cash flow from rooms sold at the hotels it owns. The main revenue stream is room revenue (driven by occupancy and average daily rate), which flows through the hotel’s profit-and-loss stat...
Chatham Lodging Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive tone: management reported strong operational execution, meaningful margin expansion, an accretive $92 million acquisition that is outperforming underwriting, active and opportunistic share repurchases, and an improved 2026 outlook (guidance raised ~15% since February). These positives were balanced with localized weakness in certain markets (coastal Northeast, Dallas, Austin), softness in the convention calendar leading to an expected ~2% RevPAR decline in some convention-driven periods, renovation-related disruptions, higher utilities, and macro/geopolitical uncertainties. Overall, the highlights—especially Silicon Valley outperformance, margin gains, accretive acquisition, and capital return activity—materially outweigh the lowlights.Positive Updates
Raised Guidance and Strong Capital Returns
Company increased 2026 guidance by approximately 15% since February; common dividend raised 11% in Q1 (after a 28% increase in 2025) with a common dividend to FFO payout ratio of ~32%, indicating strong coverage and room to grow.
Negative Updates
Market-Specific Weaknesses — Coastal Northeast and Texas
Coastal Northeast RevPAR declined ~8% in Q1; Courtyard Dallas Downtown RevPAR down ~26% in Q1 (impacted by convention center renovations/renovation-related demand falloff); Austin market weak with overall RevPAR down ~6% over the last 12 months and Residence Inn Austin under renovation for the bulk of the quarter (renovation now complete).
Read all updates
Q1-2026 Updates
Positive
Negative
Raised Guidance and Strong Capital Returns
Company increased 2026 guidance by approximately 15% since February; common dividend raised 11% in Q1 (after a 28% increase in 2025) with a common dividend to FFO payout ratio of ~32%, indicating strong coverage and room to grow.
Read all positive updates
Company Guidance
The company raised its outlook (about a 15% increase since February) and now guides 2026 RevPAR growth of 0%–2%, adjusted EBITDA of $95.3M–$99.6M and adjusted FFO per share of $1.21–$1.29 (Q2 RevPAR +1%–2%); Q1 results included hotel RevPAR +1% for the quarter, hotel EBITDA $21.4M, adjusted EBITDA $818.4M, adjusted FFO $0.20/sh, GOP margin 40.2% and hotel EBITDA margin 31.8% (GOP +60 bps YoY; hotel EBITDA margin +140 bps YoY), comparable hotel EBITDA +5% with margins up ~135 bps, and $6M of Q1 CapEx against a $27M 2026 budget; balance sheet metrics and capital allocation assumptions include a 32.5% leverage ratio, completion of a $92M acquisition (six Hilton hotels, 589 rooms, ~66% extended-stay, avg age ~10) contributing pro forma 2025 RevPAR of $127 (Q1) / $153 (Q2) / $140 (FY), continued share buybacks (2.2M shares, ~4% of equity at $7.04 avg through Q1 plus ~200k at $8.34 in April), a $25M repurchase plan to be funded by free cash flow ($15M in 2025, projected ~$20M in 2026), a common dividend increased 11% in Q1 with a dividend-to-FFO payout ratio of ~32%, and expected hotel EBITDA margin guidance revised ~100 bps higher than prior guidance.Chatham Lodging Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 293.94M | 295.07M | 317.21M | 311.11M | 294.85M | 203.97M |
| Gross Profit | 80.93M | 10.38M | 111.22M | 110.93M | 111.56M | 59.13M |
| EBITDA | 92.68M | 100.72M | 94.25M | 86.66M | 95.67M | 58.46M |
| Net Income | 9.21M | 15.05M | 4.17M | 2.64M | 9.80M | -18.41M |
Balance Sheet | ||||||
| Total Assets | 1.24B | 1.17B | 1.25B | 1.34B | 1.34B | 1.41B |
| Cash, Cash Equivalents and Short-Term Investments | 13.69M | 32.64M | 20.20M | 68.13M | 26.27M | 19.19M |
| Total Debt | 444.04M | 358.98M | 427.48M | 504.88M | 491.99M | 566.99M |
| Total Liabilities | 481.42M | 392.33M | 462.68M | 539.55M | 525.74M | 596.51M |
| Stockholders Equity | 722.92M | 740.80M | 758.22M | 776.06M | 794.89M | 797.50M |
Cash Flow | ||||||
| Free Cash Flow | 63.88M | 39.56M | 73.13M | 76.44M | 71.53M | 19.27M |
| Operating Cash Flow | 73.22M | 64.08M | 73.83M | 76.44M | 71.53M | 28.78M |
| Investing Cash Flow | -75.90M | 45.37M | -29.17M | -28.11M | 29.96M | -101.94M |
| Financing Cash Flow | -3.20M | -106.65M | -100.56M | -7.73M | -86.21M | 71.58M |
Chatham Lodging Technical Analysis
Positive
8.74
Price Trends
9.76
Positive
8.62
Positive
7.62
Positive
Market Momentum
0.78
Negative
88.19
Negative
93.83
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 8.74 is below the 20-day moving average (MA) of 11.14, below the 50-day MA of 9.76, and above the 200-day MA of 7.62, indicating a bullish trend. The MACD of 0.78 indicates Negative momentum. The RSI at 88.19 is Negative, neither overbought nor oversold. The STOCH value of 93.83 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 0 New Risks
Chatham Lodging Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $591.92M | 65.94 | 1.24% | 5.00% | -7.39% | -69.66% | |
67 Neutral | $765.18M | -51.81 | -1.46% | 6.61% | 0.26% | -233.17% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
52 Neutral | $173.76M | -9.51 | -3.38% | 7.17% | -3.86% | -11.52% | |
50 Neutral | $1.06B | -1.14 | -38.18% | 2.31% | -8.19% | 24.63% | |
46 Neutral | $19.75M | -0.09 | 56.27% | ― | -4.46% | -34.66% |
* Real Estate Sector Average
CLDT
Chatham Lodging
12.86
6.09
89.96%
INN
Summit Hotel Properties
6.20
1.74
38.89%
SVC
Service Properties
1.62
-0.76
-31.99%
AHT
Ashford Hospitality
2.96
-2.97
-50.08%
BHR
Braemar Hotels & Resorts
2.17
-0.20
-8.40%
Chatham Lodging Corporate Events
Executive/Board ChangesShareholder Meetings
Chatham Lodging Shareholders Strongly Back Board and Auditor
Positive
May 12, 2026
On May 12, 2026, Chatham Lodging Trust shareholders held their annual meeting and re-elected trustees Edwin B. Brewer Jr., Jeffrey H. Fisher, David Grissen, Mary Beth Higgins, Rolf E. Ruhfus and Ethel Isaacs Williams, each receiving approximately ...
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.