WEST PALM BEACH, FL – In a recent transaction, Dennis M. Craven, the Executive Vice President and Chief Operating Officer of Chatham Lodging Trust (NYSE:CLDT), a real estate investment trust, purchased 12,000 shares of the company's common stock. The transaction, dated June 10, 2024, involved shares bought at a price of $7.88 each, amounting to a total investment of $94,560.
This move by Craven has increased his direct ownership in the company to a total of 110,943 shares, as indicated by the latest filings. The acquisition of shares at the stated price reflects a notable investment by the executive in the trust, which is known for its portfolio of hotels and properties across the United States.
Chatham Lodging Trust, headquartered in West Palm Beach, Florida, has been in the spotlight for its strategic management and operations within the real estate sector. Transactions such as these are often seen as a sign of confidence by executives in the financial health and future prospects of their companies.
Investors often keep a close watch on insider transactions as they may provide insights into the company's performance and strategic direction. The stock purchase by Craven is a significant investment and may be of interest to current and potential shareholders as they assess the company's value and growth potential.
The shares of Chatham Lodging Trust are publicly traded on the New York Stock Exchange under the ticker symbol CLDT, and the company continues to be a key player in the real estate investment trust industry.
In other recent news, Chatham Lodging Trust reported a significant 5 percent growth in Revenue per Available Room (RevPAR) for the quarter to date through May, surpassing its second quarter projections. The company's Silicon Valley and Belleville hotels experienced an 11 percent surge in RevPAR, attributing this growth to the resurgence of business travel in the United States. In financial developments, Chatham repaid a $29 million mortgage and borrowed an additional $50 million on its term loan.
The company also acquired the newly opened Home2 Suites by Hilton Phoenix Downtown for $43 million and issued $23 million of CMBS debt secured by the Hyatt Place Pittsburgh North Shore. Chatham is expected to have about $50 million in cash with no outstanding debt on its $260 million credit facility as of June 30th.
In Q1 2024, Chatham reported a 2% increase in RevPAR and a 20% rise in other operating profit. The company's tech-driven hotels, particularly in Silicon Valley and Bellevue, saw a 17% increase in RevPAR. Chatham also announced plans to strategically sell lower-performing hotels and reinvest in higher-growth properties. The company's Q2 guidance predicts RevPAR growth of 2.5% to 4%, adjusted EBITDA of $28.7 million to $30.4 million, and adjusted FFO per share of $0.33 to $0.36. These are the recent developments in Chatham Lodging Trust's operations and financial performance.
InvestingPro Insights
In light of the recent insider trading activity, Chatham Lodging Trust (NYSE:CLDT) has drawn attention with its Executive Vice President and COO, Dennis M. Craven, making a substantial purchase of the company's stock. To provide further context for investors considering the implications of this move, we turn to the latest data and analysis from InvestingPro.
Chatham Lodging Trust currently has a market capitalization of approximately $404.41 million. Despite a challenging economic environment, the company has maintained a solid revenue base with the last twelve months as of Q1 2024 reporting $310.74 million in revenue, reflecting a modest growth of 1.48%. Moreover, the trust's gross profit margin stands at an impressive 48.53% for the same period.
InvestingPro Tips highlight that Chatham Lodging Trust is trading at a low EBITDA valuation multiple, suggesting that the market may be undervaluing the company's earnings before interest, taxes, depreciation, and amortization. Additionally, the company is trading at a low revenue valuation multiple, which could indicate that its sales are not being fully reflected in the stock price. These factors may have contributed to Craven's decision to increase his stake in the company.
However, potential investors should be aware of the volatility in the stock price, as well as concerns raised by analysts who do not anticipate the company will be profitable this year. Chatham Lodging Trust has also experienced a significant price decline over the last three months, with a 15.46% drop in total return.
For those interested in a deeper dive into Chatham Lodging Trust's financial health and future prospects, InvestingPro offers additional insights. By using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, granting access to a comprehensive list of 7 InvestingPro Tips for CLDT at: https://www.investing.com/pro/CLDT.
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