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In a challenging market environment, Chatham Lodging Trust (REIT) (NYSE:CLDT) stock has touched a 52-week low, with shares falling to $7.17. With a market capitalization of $361 million, the company maintains a "GOOD" Financial Health Score according to InvestingPro analysis, despite the recent price decline. The hotel real estate investment trust, which focuses on upscale extended-stay hotels and premium-branded select-service hotels, has faced significant headwinds over the past year, with a YTD decline of 18.44%. Investors are closely monitoring the company’s performance as it navigates through the current economic landscape, which has been particularly tough on the hospitality sector. The 52-week low marks a critical point for Chatham Lodging Trust as it seeks to regain its footing and provide value to its shareholders through its 4.93% dividend yield. InvestingPro subscribers can access 7 additional key insights and a comprehensive analysis of Chatham’s valuation metrics and growth potential.
In other recent news, Chatham Lodging Trust reported its fourth-quarter 2024 earnings, surpassing analyst expectations with an earnings per share (EPS) of -0.08, compared to the forecasted -0.14. The company also reported revenue of $75.11 million, slightly above the anticipated $74.57 million. Chatham Lodging Trust reduced its net debt by $29 million in 2024 by repaying $297 million of maturing debt. The company achieved a Hotel EBITDA of $24.3 million and an adjusted EBITDA of $21.4 million, with a GOP margin of 40.5% and a Hotel EBITDA margin of 32.5%. Notably, RevPAR growth was recorded at 3.9% for the quarter, continuing its trend of outperforming industry averages. Chatham Lodging Trust projects RevPAR growth of 3-4% for Q1 2025 and adjusted EBITDA between $16.7 million and $18.3 million. The company aims for full-year 2025 RevPAR growth of 1-3.5% and adjusted FFO per share ranging from $1.01 to $1.11. Chatham plans to reinvest proceeds from asset sales into accretive acquisitions, leveraging its balance sheet capacity for $200 million in hotel acquisitions.
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