Chatham Lodging Stock Price, News & Analysis

Chatham Lodging Trust (NYSE: CLDT) is a self-advised, publicly traded real estate investment trust (REIT) that focuses primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. According to company disclosures, substantially all of its assets are held and operated through its operating partnership, Chatham Lodging LP, which, together with its subsidiaries, leases and operates the hotel portfolio.

The company’s hotels operate under well-known global lodging brands, including Hilton, Marriott and Hyatt, as noted in available descriptions. Chatham reports that its hotels generate revenue from room, food and beverage, and other sources, with room revenue representing the majority of total revenue. The company operates its hotel platform as a single segment because the hotels share similar economic characteristics.

Hotel Portfolio and Brand Focus

Chatham Lodging Trust describes itself as a lodging REIT with a portfolio concentrated in upscale extended-stay and premium-branded select-service properties. Recent company press releases state that it owns a portfolio of hotels located in multiple U.S. states and the District of Columbia. The company has highlighted that a significant portion of its hotel EBITDA over the last twelve months has been generated from extended-stay hotels and that it has a high concentration of extended-stay rooms relative to other public lodging REITs.

Within its portfolio, Chatham reports meaningful exposure to brands such as Residence Inn, Hilton Garden Inn, Home2 Suites, Courtyard, Hampton Inn, Hyatt Place and Homewood Suites. The company regularly discloses Revenue Per Available Room (RevPAR), Average Daily Rate (ADR), and occupancy statistics by brand and by market, reflecting its focus on monitoring operating performance across its hotels.

Geographic and Market Exposure

Chatham Lodging Trust’s hotels are located across various U.S. markets. The company has identified several key markets that each account for a notable share of hotel EBITDA over the last twelve months, including Silicon Valley, Los Angeles, the Coastal Northeast, Washington, D.C., Greater New York, San Diego and Dallas. These markets include both business travel–oriented and leisure-oriented destinations.

In its public communications, Chatham has discussed performance trends in these markets, including RevPAR changes and the impact of factors such as technology-related demand, convention calendars, government travel, renovations at specific hotels and local events. The company has also referenced specific hotels in markets such as Portsmouth, New Hampshire; Anaheim, California; Pittsburgh, Pennsylvania; and several locations in Florida, Texas and Minnesota in the context of portfolio performance and asset sales.

Business Model and Revenue Drivers

As a lodging REIT, Chatham Lodging Trust’s business model centers on owning and investing in hotels and generating income from hotel operations. The company’s disclosures indicate that its primary revenue streams are:

• Room revenue – the largest component of total revenue, driven by occupancy and ADR across its hotels.
• Food and beverage revenue – generated at properties that offer these services.
• Other revenue – which may include ancillary hotel-related income as described in its filings and reports.

The company regularly reports non-GAAP performance measures such as Funds From Operations (FFO), Adjusted FFO (AFFO), EBITDA and Adjusted EBITDA, which it identifies as key supplemental measures of operating performance. It also discloses GOP margins (gross operating profit margins) and Hotel EBITDA margins to illustrate hotel-level profitability.

Capital Structure, Credit Facility and Asset Recycling

Chatham Lodging Trust has described an active approach to managing its balance sheet and hotel portfolio. In a Form 8-K and related press release, the company reported entering into a new credit agreement that provides for an unsecured revolving loan and an unsecured term loan, totaling a $500 million credit facility with the ability to increase capacity through an accordion feature. The facility has a stated maturity date with options to extend, and borrowings bear interest based on a leveraged pricing grid over adjusted term SOFR.

The company has also reported an asset recycling program, entering into contracts to sell certain older or lower RevPAR hotels and completing multiple hotel sales. Press releases describe the sale of several hotels, including multiple Homewood Suites properties, a Hampton Inn and Suites, and a Courtyard by Marriott, as well as the sale of a Homewood Suites by Hilton in Billerica, Massachusetts. The company has disclosed aggregate sales proceeds, approximate capitalization rates based on net operating income and RevPAR characteristics of the sold hotels.

Capital Expenditures and Renovations

Chatham Lodging Trust discloses a recurring capital expenditure program focused on hotel renovations and enhancements. Company communications reference a capital expenditure budget that includes renovations at selected hotels, such as the Hilton Garden Inn Portsmouth, New Hampshire, and Residence Inn properties in Austin, Texas, and Mountain View, California. The company has described specific renovation projects, including re-designing ground-floor areas, adding an upscale bar, restaurant, market and meeting rooms, and converting meeting space into additional guestrooms.

Chatham has also reported adding rooms to certain hotels by converting existing spaces into guestrooms, which it characterizes as a way to add value and increase revenue potential at those properties.

Dividends, Share Repurchases and Leverage

As a REIT, Chatham Lodging Trust regularly discusses its common and preferred share dividends. Recent press releases note quarterly dividends on common shares and preferred shares, with specific per-share amounts and payment dates to shareholders of record as of stated record dates. The company has also announced an increase in its quarterly common dividend.

In addition, Chatham has disclosed the approval of a share repurchase program with a stated dollar authorization. It has reported repurchasing common shares under this program, including the number of shares, average purchase price and aggregate purchase amounts over certain periods. The company has characterized this program as one of several capital allocation options alongside acquisitions and development projects.

Chatham provides information on its leverage ratio, calculated based on net debt to hotel investments at cost, and has reported reductions in net debt over time. It also discloses details of its debt structure, including fixed-rate mortgage debt, term loan borrowings and revolving credit facility usage, along with average interest rates.

Financial and Operating Metrics

In its periodic results, Chatham Lodging Trust reports a range of hotel and corporate-level metrics, including:

• Portfolio RevPAR, ADR and occupancy for comparable hotels.
• GOP margin and Hotel EBITDA margin for hotel operations.
• Adjusted EBITDA, AFFO and AFFO per diluted share.
• Corporate EBITDA, debt service, cash flow before capital expenditures and other measures.

The company often presents performance by market and by brand, highlighting RevPAR trends in its largest markets and for its major hotel brands. It also comments on factors influencing performance, such as business travel demand, leisure demand, convention activity, government travel patterns, renovations and local events.

Regulatory Filings and Corporate Structure

Chatham Lodging Trust is organized in Maryland and files reports with the U.S. Securities and Exchange Commission under Commission File Number 001-34693. Its Form 8-K filings describe material events such as the announcement of quarterly financial results and the entry into material definitive agreements, including the credit agreement. These filings also incorporate related press releases by reference.

The company identifies itself as a self-advised REIT, meaning that management and advisory functions are internal to the trust rather than provided by an external advisor. Its operating partnership structure, with Chatham Lodging LP as the borrower under the credit facility and various subsidiaries as guarantors, is described in its SEC filings and credit agreement disclosures.

How Investors Use Information on Chatham Lodging Trust

Investors and analysts reviewing Chatham Lodging Trust typically examine its hotel portfolio composition, brand mix, market exposure, RevPAR trends, margins and non-GAAP metrics such as FFO, AFFO and Adjusted EBITDA. They may also focus on the company’s leverage, credit facility terms, capital expenditure plans, asset recycling activity, dividend policy and share repurchase program, all of which are discussed in the company’s press releases and SEC filings.