Chatham Lodging Trust (NYSE:CLDT) Issues Quarterly Earnings Results

Key Points

• Chatham Lodging Trust beat quarterly expectations, posting an adjusted EPS loss of $0.13 versus the $0.18 loss expected and revenue of $67.5 million versus $65.55 million estimated.
• The company raised full-year guidance to adjusted FFO of $1.21-$1.29 per share and said it has increased the common dividend and seen stronger cash flow than expected.
• Management highlighted improving operations and capital allocation, including higher hotel EBITDA margins, an accretive $92 million acquisition of six Hilton-branded hotels, and ongoing share buybacks backed by a modest balance sheet.

Chatham Lodging Trust (NYSE:CLDT - Get Free Report) announced its quarterly earnings data on Thursday. The real estate investment trust reported ($0.13) EPS for the quarter, topping the consensus estimate of ($0.18) by $0.05, FiscalAI reports. Chatham Lodging Trust had a net margin of 5.10% and a return on equity of 1.92%. The business had revenue of $67.50 million for the quarter, compared to analyst estimates of $65.55 million. Chatham Lodging Trust updated its FY 2026 guidance to 1.210-1.290 EPS.

Here are the key takeaways from Chatham Lodging Trust's conference call:

• Raised guidance ~15% since February and increased the common dividend 11% in Q1 (dividend payout only ~32% of FFO), signaling stronger-than-expected cash flow and room for future dividend growth.
• Operational outperformance — Q1 comparable hotel EBITDA grew ~5%, hotel EBITDA margins expanded ~135–140 bps, GOP margin was 42.2%, and labor & benefits per occupied room fell >1%, with Silicon Valley RevPAR up 23% (ex-Mountain View) and outsized EBITDA leverage there.
• Strategic acquisition of six Hilton-branded hotels (589 rooms) for $92 million is immediately accretive, broadens exposure to manufacturing/distribution markets, and the portfolio posted RevPAR +6% in Q1 and +7% in April.
• Aggressive capital allocation — repurchased ~2.2 million shares (~4% of common) at an average $7.04 and expects to complete a $25 million repurchase plan this year; balance sheet leverage is modest (~32.5%) and the March acquisition was financed on the revolver at ~5.1%, enabling continued buybacks and opportunistic M&A.
• Company guide is conservative (full-year RevPAR +0%–2%, adjusted FFO per share $1.21–$1.29) and several markets remain weak — Courtyard Dallas RevPAR down 26% in Q1, coastal Northeast down 8%, Austin soft — plus geopolitical and event-related uncertainties (Middle East, World Cup) could pressure results.

Chatham Lodging Trust Stock Performance

Shares of NYSE:CLDT traded down $0.05 during midday trading on Friday, reaching $9.92. 386,386 shares of the company traded hands, compared to its average volume of 287,183. The firm's fifty day moving average price is $8.18 and its two-hundred day moving average price is $7.36. The firm has a market capitalization of $466.40 million, a price-to-earnings ratio of 70.82 and a beta of 1.05. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 0.18. Chatham Lodging Trust has a 12 month low of $6.08 and a 12 month high of $10.15.

Chatham Lodging Trust Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were paid a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date was Tuesday, March 31st. This is a positive change from Chatham Lodging Trust's previous quarterly dividend of $0.09. Chatham Lodging Trust's dividend payout ratio is presently 285.71%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in CLDT. Vanguard Group Inc. lifted its holdings in shares of Chatham Lodging Trust by 0.4% in the third quarter. Vanguard Group Inc. now owns 5,105,021 shares of the real estate investment trust's stock worth $34,255,000 after buying an additional 21,541 shares in the last quarter. Sculptor Capital LP purchased a new position in Chatham Lodging Trust during the second quarter valued at approximately $14,901,000. Geode Capital Management LLC grew its stake in Chatham Lodging Trust by 2.6% during the fourth quarter. Geode Capital Management LLC now owns 1,291,554 shares of the real estate investment trust's stock valued at $8,797,000 after acquiring an additional 32,861 shares in the last quarter. AQR Capital Management LLC increased its holdings in Chatham Lodging Trust by 23.4% during the 4th quarter. AQR Capital Management LLC now owns 1,075,565 shares of the real estate investment trust's stock worth $7,325,000 after acquiring an additional 204,290 shares during the period. Finally, Ameriprise Financial Inc. lifted its stake in Chatham Lodging Trust by 413.3% in the 3rd quarter. Ameriprise Financial Inc. now owns 813,825 shares of the real estate investment trust's stock worth $5,464,000 after purchasing an additional 655,265 shares in the last quarter. Hedge funds and other institutional investors own 88.37% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the company. Alliance Global Partners reissued a "buy" rating on shares of Chatham Lodging Trust in a report on Friday. Weiss Ratings raised Chatham Lodging Trust from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, March 2nd. Zacks Research downgraded Chatham Lodging Trust from a "strong-buy" rating to a "hold" rating in a research note on Monday. Finally, Stifel Nicolaus boosted their price objective on Chatham Lodging Trust from $10.00 to $11.00 and gave the company a "buy" rating in a research note on Wednesday, April 15th. Two research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $11.00.

Chatham Lodging Trust Company Profile

Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust (REIT) focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns 39 hotels totaling 5,915 rooms/suites in 16 states and the District of Columbia.

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