Stock in the Spotlight: Chatham Lodging Trust (NYSE: CLDT)

On Wednesday Chatham Lodging Trust (NYSE: CLDT) negotiated 198,747 shares against it an average volume of 274,314 shares. The stock concluded the recent trade at $20.68 with downbeat trend move of -0.10%. The company has total market value of 962.096M billion. The company has got a 52-week exceptional price of $23.91 and reached a 52-week lowest of the share price at $17.90. The daily trading range was observed between a day’s low price of $20.63 to a day’s high price of $20.84.

Chatham Lodging Trust (CLDT) recently reported results for the first quarter ended March 31, 2018. The company also provided updated guidance for 2018.

First Quarter 2018 Key Metrics

  • Portfolio Revenue per Accessible Room (RevPAR)– Reduced 2.4 percent to $122, contrast to the 2017 first quarter, for Chatham’s 40, wholly owned hotels. Average daily rate (ADR) lessened 1.2 percent to $162, and occupancy declined 1.2 percent to 76 percent.
  • Net Income – Declined $1.7M to $2.9M. Net income per diluted share was $0.06 versus $0.12 in the 2017 first quarter.
  • Adjusted EBITDA – Reduced $1.7M to $26.4M, slightly above the upper end its guidance.
  • Adjusted FFO– Lessened $1.6M, to $16.5M versus $18.1M in the 2017 first quarter. Adjusted FFO per diluted share was $0.36, above consensus and contrast to guidance of $0.33-$0.35 per share.
  • Operating Margins– Gross operating profit margins declined 260 basis points to 44.4 percent. Hotel EBITDA margins were off 360 basis points to 36.3 percent, 30 basis points better than the upper end of its guidance.
  • Balance Sheet – Solidified the balance sheet, successfully refinancing its unsecured revolving credit facility, extending the maturity to 2023 and reducing its borrowing costs.

Operating Results

“We were facing tough RevPAR comparisons in several of our key markets versus last year, and our guidance reflected that,” stated Jeffrey H. Fisher, Chatham’s president and chief executive officer. “In the 2017 first quarter, our four Houston hotels excelled from hosting the Super Bowl, our three Washington D.C. hotels benefitted from the inauguration and related events and were hurt this year Because of the temporary government shutdown, and our four Silicon Valley hotels had some large corporate business that shifted from the first quarter last year into the second quarter this year. Our portfolio RevPAR is forecast to raise about 3 percent in April.”

First quarter RevPAR performance for certain key markets:

  • Florida hotels saw RevPAR rise 6.6 percent, benefitting from a combination of hurricane-related demand and raised inbound travelers favoring Florida.
  • Silicon Valley RevPAR declined 5.1 percent to $177.
  • Two Los Angeles-area hotels experienced a RevPAR raise of 4.3 percent.
  • RevPAR declined 7.0 percent at its four Houston hotels (2017 Super Bowl).
  • RevPAR at the company’s three Washington D.C. hotels reduced 3.5 percent (2017 inauguration).

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 hotels to Volvo’s first 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 July 1, 2018. RevPAR at our Courtyard by Marriott Charleston Summerville, S.C. in the 2018 first quarter was up over two percent.

The short ratio in the company’s stock is documented at 2.42 and the short float is around of 1.49%. The average true range of the stock is observed at 0.33 and the relative strength index of the stock is recorded at 57.13. The Company has 45.13 million shares outstanding and 44.81 million shares were floated in market.



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