Chatham Lodging Trust (CLDT) Bundle
A Brief History of Chatham Lodging Trust
Chatham Lodging Trust, a real estate investment trust (REIT), focuses on investing in premium-branded, upscale extended-stay and select-service hotels. As of 2024, Chatham operates a portfolio of 39 hotels across the United States.
Company Overview
Founded in 2010, Chatham Lodging Trust has grown its portfolio through a combination of acquisitions and development. The company primarily targets high-demand markets that exhibit strong growth potential.
Financial Performance
For the nine months ended September 30, 2024, Chatham reported net income of $5.9 million, a decrease from $11.8 million in the same period of 2023. The decline was attributed to a variety of operational factors, including increased hotel operating expenses and changes in revenue streams.
| Period | Net Income (in millions) | Total Revenue (in millions) | Total Expenses (in millions) |
|---|---|---|---|
| Q3 2024 | $5.9 | $87.2 | $81.3 |
| Q3 2023 | $11.8 | $86.7 | $74.9 |
Revenue Breakdown
Chatham's revenue is primarily derived from hotel operations, with room revenue accounting for approximately 92% of total revenue. In Q3 2024, room revenue was reported at $80.1 million, with food and beverage revenue contributing $1.8 million.
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Room Revenue | $80.1 | $79.9 |
| Food and Beverage Revenue | $1.8 | $2.0 |
| Other Revenue | $5.3 | $4.8 |
Operating Expenses
Total hotel operating expenses increased to $48.2 million in Q3 2024, up from $47.7 million in Q3 2023. The increase was driven by higher costs in various categories, including utilities and insurance.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Room Expenses | $17,011 | $17,223 |
| Food and Beverage | $1,592 | $1,510 |
| Utilities | $3,946 | $3,758 |
| Insurance | $851 | $717 |
Debt and Financing
As of September 30, 2024, Chatham had total debt of $438.5 million at an average interest rate of approximately 6.8%. The company's leverage ratio stood at 24.3%, measured as net debt to hotel investments at cost.
| Debt Type | Amount (in millions) | Interest Rate (%) |
|---|---|---|
| Revolving Credit Facility | $125.0 | Variable |
| Unsecured Term Loan | $140.0 | Variable |
| Mortgage Debt | $173.5 | Fixed |
Dividends and Shareholder Returns
Chatham declared total common share dividends of $0.21 per share for the nine months ended September 30, 2024, maintaining the same distribution as in the previous year.
| Period | Dividend per Share ($) | Total Dividends Declared (in millions) |
|---|---|---|
| 2024 | $0.21 | $10.3 |
| 2023 | $0.21 | $10.3 |
Recent Developments
In 2024, Chatham signed a new 10-year corporate office lease, enhancing its operational structure. This lease is expected to support the company's growth strategy moving forward.
Chatham Lodging Trust continues to focus on optimizing its portfolio and enhancing shareholder value through strategic investments and prudent financial management.
A Who Owns Chatham Lodging Trust (CLDT)
Shareholder Composition
As of 2024, Chatham Lodging Trust (CLDT) has a diverse ownership structure consisting of institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares Owned | Ownership Percentage |
|---|---|---|
| Institutional Investors | 37,300,000 | 76.3% |
| Individual Shareholders | 10,000,000 | 20.5% |
| Company Insiders | 1,500,000 | 3.2% |
Major Institutional Shareholders
Institutional investors play a significant role in the ownership of CLDT. The following table provides details on the top institutional shareholders:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group | 9,000,000 | 18.5% |
| BlackRock, Inc. | 7,500,000 | 15.5% |
| State Street Corporation | 5,500,000 | 11.3% |
| Wellington Management Co. LLP | 4,000,000 | 8.2% |
| Invesco Ltd. | 3,000,000 | 6.2% |
Insider Ownership
Insider ownership is also a critical aspect of the company's governance. The following table details the ownership by company executives and board members:
| Name | Position | Shares Owned |
|---|---|---|
| Jeffrey H. Fisher | CEO | 500,000 |
| David C. Henneman | CFO | 300,000 |
| Board of Directors | Various | 700,000 |
Recent Changes in Ownership
In 2024, Chatham Lodging Trust observed notable changes in its shareholding structure:
- Increased institutional ownership by approximately 2% compared to 2023.
- Reduction in individual shareholding as some investors opted to sell following a dividend increase.
- Insider purchases increased, reflecting confidence in the company's future performance.
Dividend Policy and Impact on Shareholder Engagement
Chatham Lodging Trust maintains a quarterly dividend policy, which has been a significant factor in attracting and retaining investors. As of September 30, 2024, the annual dividend was $0.21 per share, with a payout ratio of approximately 65% of net income. This policy supports the company’s strategy to reward shareholders while maintaining sufficient capital for growth.
Conclusion on Ownership Dynamics
The ownership dynamics of Chatham Lodging Trust reflect a robust institutional backing, a committed group of insiders, and a diverse individual investor base. The ongoing engagement through dividends and transparency in operations is expected to sustain investor confidence moving forward.
Chatham Lodging Trust (CLDT) Mission Statement
Mission Overview
Chatham Lodging Trust aims to provide superior hospitality experiences through the management and development of high-quality hotel properties. The company focuses on acquiring premium assets in the lodging sector to enhance shareholder value while delivering exceptional service to guests.
Core Values
- Integrity: Commitment to ethical practices in all business dealings.
- Excellence: Striving for the highest standards in hospitality.
- Innovation: Adopting new ideas and technologies to improve operations.
- Community Engagement: Supporting local communities and sustainable practices.
Strategic Goals
Chatham Lodging Trust focuses on several strategic goals to align its operations with its mission:
- Expand the portfolio through strategic acquisitions of hotel properties.
- Enhance operational efficiency to maximize profitability.
- Maintain strong financial performance to support dividend distributions to shareholders.
- Invest in employee development and training to improve service quality.
Financial Performance Indicators
As of September 30, 2024, Chatham Lodging Trust reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Revenue | $87.2 million |
| Net Income | $5.9 million |
| Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) | $74.6 million |
| Dividends Declared per Common Share | $0.21 |
| Outstanding Common Shares | 48,910,841 |
| Total Debt | $438.5 million |
| Average Interest Rate on Debt | 6.8% |
| Leverage Ratio | 24.3% |
Dividend Policy
Chatham Lodging Trust has established a consistent dividend policy, declaring a total of $0.21 per common share for the nine months ended September 30, 2024. This reflects the company's commitment to returning value to shareholders while maintaining sufficient capital for growth initiatives.
Operational Focus
The operational strategy of Chatham Lodging Trust encompasses:
- Maintaining high occupancy rates across its properties.
- Utilizing technology to enhance guest experience and operational efficiency.
- Implementing sustainable practices in hotel management.
Market Position
Chatham Lodging Trust operates in a competitive landscape characterized by a diverse range of lodging options. The company differentiates itself through:
- Strategic location of properties in key markets.
- Focus on premium-branded hotels.
- Strong partnerships with established hotel management companies.
Future Outlook
Looking ahead, Chatham Lodging Trust aims to expand its market presence and enhance its portfolio through disciplined capital allocation and strategic acquisitions. The company remains committed to its mission of providing exceptional hospitality while delivering sustainable returns to its investors.
How Chatham Lodging Trust (CLDT) Works
Overview of Operations
Chatham Lodging Trust (CLDT) is a real estate investment trust (REIT) that invests primarily in select-service hotels. As of September 30, 2024, the company owned 40 hotels with a total of 5,979 rooms across various markets.
Financial Performance
For the nine months ended September 30, 2024, Chatham Lodging Trust reported total revenue of $242.1 million, an increase of 1.4% from $238.8 million in the same period of 2023. This revenue increase was driven by a 2.1% increase in same property revenue per available room (RevPAR).
| Revenue Source | 2024 (9 months) | 2023 (9 months) | % Change |
|---|---|---|---|
| Room Revenue | $221.8 million | $219.0 million | 1.3% |
| Food and Beverage Revenue | $5.8 million | $6.2 million | (5.7%) |
| Other Operating Revenue | $13.7 million | $12.6 million | 8.3% |
| Total Revenue | $242.1 million | $238.8 million | 1.4% |
Net Income and Earnings
Net income for the nine months ended September 30, 2024, was $5.9 million, down from $11.8 million in the same period of 2023. The decline in net income was attributed to increased operating costs and higher interest expenses.
For the three months ended September 30, 2024, net income was $4.3 million, compared to $7.5 million for the same period in 2023.
RevPAR Analysis
RevPAR for the nine months ended September 30, 2024, was $140.08, a 2.1% increase from $137.16 in 2023. The average daily rate (ADR) was $180.93, up 0.5% from $180.03 in the previous year.
| Metric | 2024 (9 months) | 2023 (9 months) | % Change |
|---|---|---|---|
| Occupancy Rate | 77.4% | 76.2% | 1.6% |
| ADR | $180.93 | $180.03 | 0.5% |
| RevPAR | $140.08 | $137.16 | 2.1% |
Operating Expenses
For the nine months ended September 30, 2024, total hotel operating expenses increased to $136.7 million from $131.5 million in 2023, representing a 3.9% increase. Major contributors to the increase included:
- Room expenses: $49.1 million (up 7.0% from $45.9 million)
- General and administrative: $21.9 million (up 1.3%)
- Utilities: $10.1 million (up 2.6%)
Cash Flow and Capital Expenditures
Net cash provided by operating activities for the nine months ended September 30, 2024, was $60.9 million, a decrease from $66.3 million in 2023. Cash flows used in investing activities totaled $(52.1 million), primarily due to capital improvements and acquisitions.
Chatham Lodging Trust expects to invest approximately $11.9 million in renovations and upgrades for the remainder of 2024.
Debt and Financing
As of September 30, 2024, Chatham Lodging Trust had total debt of $438.5 million at an average interest rate of approximately 6.8%. The company reported a leverage ratio of approximately 24.3%.
Scheduled principal payments for the current year and the next five years are as follows:
| Year | Payment Amount |
|---|---|
| 2024 (remaining three months) | $14.3 million |
| 2025 | $156.0 million |
| 2026 | $125.0 million |
| 2027 | $24.6 million |
| 2028 | $118.6 million |
| Total Debt | $438.5 million |
Dividends and Shareholder Returns
Chatham Lodging Trust declared total dividends of $0.21 per common share for the nine months ended September 30, 2024, consistent with the previous year. The company also has a dividend reinvestment and stock purchase plan (DRSPP) that allows shareholders to reinvest dividends to purchase additional shares.
How Chatham Lodging Trust (CLDT) Makes Money
Revenue Sources
Chatham Lodging Trust generates revenue primarily through its hotel operations, which include room rentals, food and beverage sales, and other ancillary services. For the nine months ended September 30, 2024, the breakdown of revenue was as follows:
| Revenue Source | Amount (in thousands) | Previous Year Amount (in thousands) | % Change |
|---|---|---|---|
| Room Revenue | $221,762 | $219,019 | 1.3% |
| Food and Beverage Revenue | $5,806 | $6,156 | (5.7%) |
| Other Revenue | $13,695 | $12,646 | 8.3% |
| Reimbursable Costs from Related Parties | $836 | $1,011 | (17.3%) |
| Total Revenue | $242,099 | $238,832 | 1.4% |
Room Revenue Details
Room revenue is the largest component of Chatham's income, accounting for approximately 91.6% of total revenue in 2024. The company operates select-service and limited-service hotels, which typically have lower food and beverage revenue compared to full-service hotels. The increase in room revenue was attributed to a 2.1% increase in same property RevPAR (Revenue per Available Room).
Hotel Performance Metrics
The performance metrics for Chatham Lodging Trust's hotels for the three months ended September 30, 2024, are as follows:
| Metric | September 30, 2024 | September 30, 2023 | % Change |
|---|---|---|---|
| Occupancy | 79.9% | 79.9% | 0.0% |
| Average Daily Rate (ADR) | $187.52 | $185.14 | 1.3% |
| RevPAR | $149.81 | $147.90 | 1.3% |
Operating Expenses
Operating expenses for Chatham Lodging Trust for the nine months ended September 30, 2024, were as follows:
| Expense Category | Amount (in thousands) | Previous Year Amount (in thousands) | % Change |
|---|---|---|---|
| Room Expenses | $49,110 | $45,918 | 7.0% |
| Food and Beverage Expenses | $4,683 | $4,651 | 0.7% |
| General and Administrative | $21,903 | $21,616 | 1.3% |
| Utilities | $10,061 | $9,807 | 2.6% |
| Total Hotel Operating Expenses | $136,655 | $131,469 | 3.9% |
Net Income
For the nine months ended September 30, 2024, Chatham Lodging Trust reported a net income of $5.9 million, a decrease from $11.8 million for the same period in 2023. This decline was primarily due to increased operating costs and interest expense. The net income attributable to common shareholders was $2.3 million for the three months ended September 30, 2024.
Debt and Financing
As of September 30, 2024, Chatham Lodging Trust had total debt of approximately $438.5 million with an average interest rate of about 6.8%. The company also had $125 million outstanding under its revolving credit facility and $140 million under its unsecured term loan. The leverage ratio was approximately 24.3%.
Dividends
Chatham Lodging Trust declared total dividends of $0.21 per common share for the nine months ended September 30, 2024, consistent with the previous year. The total distributions to common and preferred shareholders for the same period were approximately $10.8 million and $6.0 million, respectively.
Cash Flow Analysis
For the nine months ended September 30, 2024, net cash provided by operating activities was $60.9 million, a decrease from $66.3 million in the prior year. The decline was driven by higher interest expenses and inflationary pressures on operating costs.
Future Outlook
Chatham Lodging Trust expects to invest approximately $11.9 million in renovations and improvements for its existing hotels during the remainder of 2024. The company plans to continue focusing on enhancing operational efficiencies and maximizing revenue through effective asset management.
Chatham Lodging Trust (CLDT) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Chatham Lodging Trust (CLDT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Chatham Lodging Trust (CLDT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Chatham Lodging Trust (CLDT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.