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Chatham Lodging Trust (NYSE:CLDT), a real estate investment trust focused on the hospitality sector with a market capitalization of $382 million, has seen its stock price touch a 52-week low, dipping to $7.59. The company currently offers a 4.62% dividend yield and trades at just 0.5 times book value. According to InvestingPro analysis, the stock is currently fairly valued. This latest price level reflects a significant downturn from the company’s performance over the past year, with the stock experiencing a 20.47% decline. Investors are closely monitoring the REIT’s ability to navigate the challenging economic landscape that has impacted the hospitality industry, as the company strives to recover and improve its financial standing amidst fluctuating market conditions. InvestingPro analysis reveals the company is trading at low EBITDA and revenue multiples, with additional insights available in the comprehensive Pro Research Report covering this and 1,400+ other US stocks.
In other recent news, Chatham Lodging Trust reported its fourth-quarter 2024 earnings, surpassing analyst expectations. The company achieved an earnings per share (EPS) of -0.08, better than the anticipated -0.14, and reported revenue of $75.11 million, slightly exceeding the forecasted $74.57 million. Chatham Lodging Trust also made significant strides in debt management by repaying $297 million of maturing debt, which reduced its net debt by $29 million in 2024. RevPAR growth outpaced industry performance for the third consecutive year, with a 3.9% increase in the quarter. The company’s strong operational performance was reflected in a GOP margin of 40.5% and a Hotel EBITDA margin of 32.5%. Looking ahead, 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 plans to reinvest proceeds from asset sales into accretive acquisitions, leveraging its balance sheet capacity for $200 million in hotel acquisitions. Analyst firms like Alliance Global Partners (NYSE:GLP) have shown interest in the company’s asset recycling strategy and future acquisition plans.
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