Chatham Lodging Trust: Attractive Valuation Heading Into 2026
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Ivo Kolchev1.48K FollowersFollow5ShareSavePlay(13min)CommentsSummary59% of Chatham Lodging Trust rooms are in extended stay hotels, giving the company smaller exposure to labor cost pressures.2025 may mark a trough for CLDT's adjusted funds from operations, as a favorable economic backdrop and share repurchases power growth into 2026.The common CLDT shares remain attractively valued at 7.3x the expected adjusted FFO in 2025, with refinancing of legacy mortgage debt likely to help growth over the next decade.The Series A preferred shares offer a well-covered 8.2% dividend and ample capital gain potential amid Fed policy normalization.No improvement in U.S. economic momentum and an increase in long-term interest rates are key risks in the investment case. Aleksey Demin/iStock Editorial via Getty Images Introduction 2025 has been a challenging year for the U.S. economy, with unemployment increasing to 4.6% in November and the longest-lasting government shutdown sapping economic momentum in the final quarter of the year. ThisThis article was written byIvo Kolchev1.48K FollowersFollowI ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered calls and cash secured puts. I approach investing purely from a fundamental long-term point of view.
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