Chatham Lodging (CLDT) AI Stock Analysis

• Market Cap: $344.35M
• Dividend Yield: 4.3%
• Average Volume (3M): 406.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 1.75%
• EPS Growth: N/A
• Country: US
• Employees: 17
• Sector: Real Estate
• Sector Strength: 81
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.01
• Shares Outstanding: 48,982,502
• 10 Day Avg. Volume: 295,566
• 30 Day Avg. Volume: 406,245
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.52
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.82
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $9.17
• Price Target Upside: 31.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Chatham Lodging's overall stock score reflects a stable financial foundation with strong cash flow generation and operational efficiency improvements. However, profitability challenges and a high P/E ratio weigh on the score. The earnings call highlights positive strategic actions, yet economic uncertainties and cost pressures persist. Technical indicators suggest cautious trading, impacting the stock's attractiveness.

Positive Factors

Earnings

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

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.

EBITDA 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

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 hotel room rentals and associated services, which include food and beverage sales, conference and banquet facilities, and other guest services. Chatham Lodging's revenue model benefits from its strategic partnerships with leading hotel brands, which attract a loyal customer base and maintain high occupancy rates. By investing in properties located in economically robust and high-demand markets, Chatham ensures a steady flow of income through consistent hotel occupancy and competitive room rates. Additionally, the REIT structure allows Chatham to distribute a significant portion of its taxable income to shareholders as dividends, providing an attractive return on investment.

Chatham Lodging Financial Statement Overview

Summary

Chatham Lodging demonstrates stability with steady revenue growth and improved operational efficiency, as seen in the improving EBIT and EBITDA margins. The balance sheet shows moderate leverage and a strong equity base. However, challenges remain in enhancing profitability and shareholder returns, as indicated by the low net profit margin and return on equity. Cash generation is strong, but growth in cash reserves is limited.

Income Statement

Chatham Lodging has shown moderate revenue growth with a 1.96% increase from the previous year. The gross profit margin is consistent, but the net profit margin remains low at 1.31%, indicating limited profitability. The EBIT and EBITDA margins have improved, suggesting better operational efficiency, yet overall profitability remains constrained.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio of 0.56, reflecting moderate leverage. The equity ratio stands at 60.41%, indicating a stable financial foundation. Return on equity is low at 0.55%, suggesting limited returns for shareholders despite a stable equity base.

Cash Flow

Chatham Lodging has a robust operating cash flow to net income ratio of 17.72, demonstrating strong cash generation relative to earnings. The free cash flow to net income ratio is also healthy. However, free cash flow growth is absent, indicating potential challenges in expanding cash reserves.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
317.21M	311.11M	294.85M	203.97M	144.92M
	Gross Profit
111.22M	110.93M	111.56M	59.13M	22.33M
	EBIT
33.22M	28.61M	36.45M	-12.54M	-43.10M
	EBITDA
94.25M	86.66M	95.02M	58.46M	3.83M
	Net Income Common Stockholders
4.17M	2.64M	-16.78M	-40.93M	-92.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.20M	68.13M	26.27M	19.19M	21.12M
	Total Assets
1.25B	1.34B	1.34B	1.41B	1.37B
	Total Debt
427.48M	504.88M	491.99M	566.99M	632.00M
	Net Debt
407.29M	436.75M	465.72M	547.80M	610.88M
	Total Liabilities
462.68M	539.55M	525.74M	596.51M	677.80M
	Stockholders Equity
758.22M	776.06M	794.89M	797.50M	677.75M
Cash Flow		Free Cash Flow
73.83M	76.44M	55.87M	19.27M	-34.45M
	Operating Cash Flow
73.83M	76.44M	71.53M	28.78M	-19.96M
	Investing Cash Flow
-29.17M	-28.11M	29.96M	-101.94M	26.81M
	Financing Cash Flow
-100.56M	-7.73M	-86.21M	71.58M	4.43M

Chatham Lodging Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.98
• 50DMA: Negative
• 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 Negative. The current price of 6.98 is above the 20-day moving average (MA) of 6.92, below the 50-day MA of 7.17, and below the 200-day MA of 8.15, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 49.17 is Neutral, neither overbought nor oversold. The STOCH value of 40.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLDT.

Chatham Lodging Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLDT	64 Neutral	$344.35M	―	1.42%	4.30%	1.75%	―
INN	64 Neutral	$531.84M	34.22	4.45%	7.37%	-1.86%	―
BHR	64 Neutral	$130.07M	―	-0.90%	10.10%	-2.42%	23.64%
SOHO	62 Neutral	$29.48M	―	2.79%	―	4.63%	-61.60%
Sector *	60 Neutral	$2.81B	11.04	0.20%	8508.34%	6.12%	-16.66%
SVC	56 Neutral	$344.94M	―	-33.91%	11.44%	0.78%	-128.16%
AHT	41 Neutral	$34.54M	―	-25.85%	―	-14.65%	-33.35%

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.

Spark’s Take on CLDT Stock

According to Spark, TipRanks’ AI Analyst, CLDT is a Neutral.

Chatham Lodging’s overall financial stability and strong cash flow generation are positive indicators, although profitability remains a challenge. The earnings call provided a positive outlook with strong RevPAR growth and successful asset sales, despite some market-specific challenges. The technical indicators suggest caution due to bearish trends below key moving averages. The dividend yield adds appeal, but the negative P/E ratio reflects current profitability issues. Overall, the stock is moderately attractive with potential for improvement.

To see Spark’s full report on CLDT stock, click here.

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.

Spark’s Take on CLDT Stock

According to Spark, TipRanks’ AI Analyst, CLDT is a Neutral.

Chatham Lodging’s overall financial stability and strong cash flow generation are positive indicators, although profitability remains a challenge. The earnings call provided a positive outlook with strong RevPAR growth and successful asset sales, despite some market-specific challenges. The technical indicators suggest caution due to bearish trends below key moving averages. The dividend yield adds appeal, but the negative P/E ratio reflects current profitability issues. Overall, the stock is moderately attractive with potential for improvement.

To see Spark’s full report on CLDT stock, click here.

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.