Chatham Lodging Trust (REIT) Common Shares of Beneficial Interest (CLDT)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Chatham as a REIT, so I set aside the distortions of depreciation and do not use the Graham Number or a margin-of-safety calculation. FFO and AFFO, the right measures, are not in the data; I must lean on dividend yield, leverage, revenue trend and price-to-book. Chatham owns 39 upscale extended-stay and premium-branded select-service hotels, 5,610 rooms across 18 states and D.C., run by only 16 employees. That is a focused asset owner, not a business with a wide moat; hotel demand and brand positioning can help, but rates and occupancy are cyclical. The filed record shows lumpy profitability: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $87.8M and net income $8.2M, up from $80.3M and $5.4M in fiscal Q2 2025, the quarter ended 2025-06-30. But fiscal Q1 2026, ended 2026-03-31, produced a $4.3M net loss. FY2025, ended 2025-12-31, revenue was $295.1M with $15.1M net income and $0.14 diluted EPS, down from FY2024, ended 2024-12-31, revenue of $317.2M and up from FY2024 net income of $4.2M. Thin, uneven earnings. At the 2026-10-13 close of $13.92, FairStock calculates P/B 0.90, P/E 174, FCF yield 11.8%, dividend yield 3.08%, D/E 0.57, Piotroski 8/9 and Altman Z 0.57. The asset-play label is apt: price is below book. Cash flow looks respectable. But leverage, a very low Z-score and poor returns on equity/capital temper the bargain. The shares are near the 52-week high of $14.05, so the market is not paying a distressed price. I would want FFO/AFFO and clearer revenue durability before calling this compelling.

In plain English: The company owns upscale extended-stay and select-service hotels and makes money from guests staying in them. Profits have been thin and uneven, though the latest quarter was better and cash generation looks solid. The stock looks somewhat cheap compared with the company's net assets, but the business carries meaningful debt and hotel demand can swing.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer