Chatham Lodging Trust
NYSE:CLDT
Chatham Lodging Trust
Chatham Lodging Trust engages in the acquisition and investment in hotel properties. The company is headquartered in West Palm Beach, Florida and currently employs 17 full-time employees. The company went IPO on 2010-04-16. The firm primarily invest in upscale extended-stay service hotels. The company also invests in upscale or upper upscale all-suite hotels. All of the Company's assets are held by, and all of its operations are conducted through Chatham Lodging, L.P. (the Operating Partnership). The firm owns approximately 41 hotels with an aggregate of 6,169 rooms located in 16 states and the District of Columbia. The firm's hotels included upscale extended-stay hotels that operate under the Residence Inn by Marriott brand, Homewood Suites by Hilton brand and the TownePlace Suites by Marriott brand, as well as premium-branded select service hotels that operate under the Courtyard by Marriott brand, the Hampton Inn or Hampton Inn and Suites by Hilton brand, the Hilton Garden Inn by Hilton brand, the SpringHill Suites by Marriott brand, the Hyatt Place brand, and all-suite hotels that operate under the upper scale Embassy Suites brand.
Chatham Lodging Trust engages in the acquisition and investment in hotel properties. The company is headquartered in West Palm Beach, Florida and currently employs 17 full-time employees. The company went IPO on 2010-04-16. The firm primarily invest in upscale extended-stay service hotels. The company also invests in upscale or upper upscale all-suite hotels. All of the Company's assets are held by, and all of its operations are conducted through Chatham Lodging, L.P. (the Operating Partnership). The firm owns approximately 41 hotels with an aggregate of 6,169 rooms located in 16 states and the District of Columbia. The firm's hotels included upscale extended-stay hotels that operate under the Residence Inn by Marriott brand, Homewood Suites by Hilton brand and the TownePlace Suites by Marriott brand, as well as premium-branded select service hotels that operate under the Courtyard by Marriott brand, the Hampton Inn or Hampton Inn and Suites by Hilton brand, the Hilton Garden Inn by Hilton brand, the SpringHill Suites by Marriott brand, the Hyatt Place brand, and all-suite hotels that operate under the upper scale Embassy Suites brand.
Portfolio Optimization: Chatham sold five older, lower-performing hotels and is under contract to sell another, adding liquidity for share repurchases and new investments.
Share Repurchases: The company has repurchased about 500,000 shares (1% of outstanding) at an average price of $6.85 and intends to continue buybacks, citing a meaningful discount to intrinsic value.
Financial Performance: Q3 hotel EBITDA reached $28.8 million and adjusted FFO was $0.32 per share, both toward the upper end of guidance and beating consensus estimates.
RevPAR Trends: Portfolio RevPAR declined 2.5% in Q3, with softness driven by Sunnyvale hotels (down 9%) and D.C. properties, but some markets like Portland, ME and Holtsville, NY saw strong growth.
Margin Management: Despite RevPAR headwinds, gross operating profit margin only declined by 70–90 basis points to a still-strong 43.6%–44%, aided by tight expense control and stable labor costs.
Guidance Update: Q4 guidance calls for RevPAR down 3.5% to 2.5% and adjusted FFO per share of $0.14 to $0.17; full-year FFO guidance is $0.96 to $0.99 per share.
Strong Balance Sheet: The credit facility and term loan were upsized and refinanced, with net debt/EBITDA at 3.5x and $300 million of undrawn liquidity.
Development & Acquisitions: The Portland, ME project is expected to start site work in 2026 with an early 2028 opening; management is cautiously optimistic about acquisition opportunities as seller expectations become more reasonable.
