Chatham Lodging (CLDT) AI Stock Analysis

• Market Cap: $354.65M
• Dividend Yield: 5.16%
• Average Volume (3M): 235.23K
• Price to Earnings (P/E): 125.7
• Beta (1Y): 1.16
• Revenue Growth: 1.75%
• EPS Growth: N/A
• Country: US
• Employees: 17
• Sector: Real Estate
• Sector Strength: 59
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.01
• Shares Outstanding: 48,984,250
• 10 Day Avg. Volume: 306,113
• 30 Day Avg. Volume: 235,227
• 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: 3.00
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 10.30
• Enterprise Value/Ebitda: 2.87
• 1Y Price Target: $9.17
• Price Target Upside: 26.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 70 Neutral
• Price Target: $8.00 ▲(10.50%Upside)

Chatham Lodging's overall score is driven primarily by strong financial performance and positive earnings call outcomes. However, technical indicators and valuation suggest caution, with high P/E ratios and mixed technical signals highlighting potential overvaluation and moderate market momentum.

Positive Factors

Earnings Beat

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

Financial Performance

1Q results showed RevPAR growth and adjusted FFO exceeding expectations.

Share Repurchase Program

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.

Earnings Guidance

CLDT expects adjusted EBITDA/FFO of $92-97mm/$1.01-1.11, which is below consensus and includes an EBITDA headwind from hotel sales.

Guidance Reduction

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

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 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
EBITDA	99.19M	92.50M	86.66M	95.02M	58.46M	3.83M
Net Income	10.89M	4.17M	2.64M	-16.78M	-40.93M	-92.34M
Balance Sheet
Total Assets	1.23B	1.25B	1.34B	1.34B	1.41B	1.37B
Cash, Cash Equivalents and Short-Term Investments	18.59M	20.20M	68.13M	26.27M	19.19M	21.12M
Total Debt	401.56M	427.48M	504.88M	491.99M	566.99M	632.00M
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: 7.24
• 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 7.24 is above the 20-day moving average (MA) of 7.03, above the 50-day MA of 6.99, and below the 200-day MA of 7.88, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.33 is Neutral, neither overbought nor oversold. The STOCH value of 51.65 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
BHR	74 Outperform	$166.95M	―	-0.90%	7.69%	-2.42%	23.64%
CLDT	70 Neutral	$354.65M	125.69	1.42%	5.16%	1.75%	―
INN	65 Neutral	$662.56M	41.73	4.45%	6.29%	-1.86%	―
SOHO	63 Neutral	$38.20M	―	9.72%	―	3.82%	18.62%
Sector *	59 Neutral	C$1.23B	0.80	-8.20%	5.24%	9.89%	-25.14%
SVC	56 Neutral	$416.59M	―	-33.91%	1.67%	0.78%	-128.16%
AHT	44 Neutral	$35.11M	―	-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.