Chatham Lodging Trust (CLDT) Posts Profit, but Revenue Growth and Dividend Sustainability Remain Uncertain

Chatham Lodging Trust (CLDT) recently reported a net profit margin in positive territory, driven by an $8.8 million one-off gain. However, revenue is projected to grow 2.1% annually, which is below the broader US market's 10.5% expected pace. Investors are weighing the sustainability of CLDT's margins and path to consistent profitability, as the company's share price trades below its calculated fair value of $11.20. Analysts expect stable gross operating profit margins but muted revenue forecasts and persistent cost pressures, leading to concerns over dividend sustainability amid rising expenses.