Traders Attention Alert: Chatham Lodging Trust (NYSE: CLDT)

Shares of Chatham Lodging Trust (NYSE: CLDT) above/below -1.26% and ended at $-0.25. The stock’s market capitalization arrived at $906.14M and total traded volume was 160,581 shares. The stock has a 52-week highest price of $23.91 and its 52-week lowest price was called at $17.90. During last trade, its maximum trading price was registered $19.95 and it’s the minimum trading price was noted $19.50.

Chatham Lodging Trust (CLDT) recently reported results for the second quarter ended June 30, 2018. The company also provided updated guidance for 2018.

Second Quarter 2018 Key Metrics

  • Portfolio Revenue per Accessible Room (RevPAR)– Raised 0.8 percent to $143, contrast to the 2017 second quarter, for Chatham’s 40, wholly owned hotels. Average daily rate (ADR) improved 0.6 percent to $172, and occupancy also rose 0.2 percent to 83 percent.
  • Net Income – Improved $8.4M to $13.5M. Net income per diluted share was $0.29 versus $0.13 in the 2017 second quarter.
  • Adjusted EBITDA – Advanced $2.5M to $37.6M, at the upper end of its guidance.
  • Adjusted FFO– Rose $2.2M, to $27.4M, versus $25.2M in the 2017 second quarter. Adjusted FFO per diluted share was $0.59, above consensus and contrast to guidance of $0.56-$0.59 per share.
  • Operating Margins– Gross operating profit margins declined 50 basis points to 48.9 percent. Hotel EBITDA margins were off 70 basis points to 41.5 percent, within its range of guidance.
  • Balance Sheet – Continued to de-lever, paying down $2.8M of net debt in the quarter and reducing leverage to 33 percent.

Operating Results

“Our second quarter results finished at the upper end of our FFO per share guidance expectations, driven by a combination of RevPAR growth above the midpoint of our guidance and strong performance by our joint venture portfolios,” stated Jeffrey H. Fisher, Chatham’s president and chief executive officer. “In the 2018 second quarter, RevPAR at our joint venture hotels improved 3.3 percent, benefitting from the important capital invested into the Inland portfolio in 2016 and 2017. Within the Chatham portfolio, as I mentioned last quarter, we’re seeing some improving market conditions across the portfolio, especially in markets that have absorbed most of the competitive new supply. In fact, about one-third of our hotels saw RevPAR rise over 5 percent, and about one-half of our portfolio saw RevPAR rise over 3 percent.”

Second quarter RevPAR performance for certain of Chatham’s key markets:

  • Florida hotels saw RevPAR advanced 10.2 percent.
  • Silicon Valley RevPAR rose 0.5 percent to $190.
  • RevPAR jumped 9.6 percent at its four Houston hotels.
  • Two Los Angeles-area hotels experienced a RevPAR raise of 3.5 percent.
  • RevPAR at the company’s three Washington D.C. hotels raised 3.6 percent.

Planned Capital Recycling Program and Hotel Investments

In November 2017, the company contracted to acquire the under-construction, 96-room Residence Inn Charleston Summerville, S.C., for $21M. The hotel sits adjacent to the 96-room Courtyard by Marriott that Chatham purchased in the same month. These hotels are located in Nexton, an emerging, mixed-use community in the heart of a rapidly expanding area just outside of Charleston. The hotels will be the highest quality and closest accommodations to Volvo’s second American factory which is predictable to open later this year. Volvo already reported plans for a second factory on its nearby campus. Chatham expects to close on the acquisition by August 31, 2018. RevPAR at the company’s Courtyard by Marriott Charleston Summerville, S.C., in the 2018 second quarter was up about four percent.

Joint Venture Investments

During the 2018 second quarter, the Innkeepers and Inland joint ventures contributed Adjusted EBITDA and Adjusted FFO of about $5.1M and $2.8M, respectively, contrast to 2017 second quarter Adjusted EBITDA and FFO of about $4.8M and $2.7M, respectively. Both Adjusted EBITDA and Adjusted FFO were $0.1M above the company’s previous guidance for the quarter.

Chatham received distributions from its joint venture investments of $1.8M during the 2018 second quarter.


Chatham presently pays a monthly dividend of $0.11 per ordinary share. Chatham’s 2018 dividend per share of $1.32 represents about 70 percent of its 2018 adjusted FFO per share, based on the midpoint of its guidance for 2018.

The company net profit margin is 11.40% and gross profit margin is 75.30%. A look on the firm performance, its monthly performance is -4.31% and a quarterly performance of -10.89%. The stock price is moving down from its 20 days moving average with -3.59% and isolated negatively from 50 days moving average with -6.38%. 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.


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