Chatham Lodging Trust Preferred Stock Analysis: Near 8% Yield Potential

Chatham Lodging Trust, a hotel REIT, has a preferred stock offering that is currently near 8% yield. The company invests in upscale, extended-stay, and premium-branded hotels. The preferred stock offers a relatively high dividend yield, making it an attractive investment option for those seeking stable income.

Introduction:

Chatham Lodging Trust (CLDT), a self-advised real estate investment trust (REIT), specializes in acquiring and managing upscale, extended-stay, and premium-branded hotels in major markets with high barriers to entry [1]. With a portfolio of 37 hotels totaling 5,596 rooms/suites in 16 states and the District of Columbia, the company aims to generate attractive returns for its shareholders through strategic investments, dividend payments, and value appreciation [1]. One such investment opportunity for income-seeking investors is Chatham Lodging Trust's preferred stock, which currently offers a yield near 8% [2].

High-Yielding Preferred Stock:

The preferred stock offering from Chatham Lodging Trust is an attractive option for investors seeking stable income. With a relatively high dividend yield, the preferred stock provides investors with a steady stream of income without the potential volatility associated with common stock [2]. As of March 5, 2025, the preferred stock was trading at around $25 per share, yielding approximately 8% [2].

Quality Hotel Investments:

Chatham Lodging Trust's focus on investing in high-quality, upscale extended-stay and premium-branded select-service hotels sets it apart from other REITs. The company's properties are located in major markets with strong demand generators, positioning them for long-term success [1]. Some of the notable brands in Chatham Lodging Trust's portfolio include Residence Inn by Marriott, Hampton Inn, Hilton Garden Inn, Hyatt Place, and Courtyard by Marriott [1].

Disciplined Growth Strategy:

Chatham Lodging Trust's disciplined growth strategy involves acquiring hotel properties in markets with strong demand generators and potential for demand growth. The company also seeks to acquire underperforming or undercapitalized properties and employ value-added strategies such as rebranding, renovating, or changing management to increase operating results and asset values [1].

Conclusion:

Chatham Lodging Trust's high-yielding preferred stock offering provides income-seeking investors with an attractive investment opportunity. With a focus on acquiring high-quality, upscale extended-stay and premium-branded select-service hotels in major markets, the company is well-positioned for long-term success. As always, investors should conduct their own research and consider their investment objectives and risk tolerance before making any investment decisions.

References:

[1] Chatham Lodging Trust. (n.d.). About Chatham Lodging Trust. Retrieved March 5, 2025, from https://chathamlodgingtrust.com/
[2] Stock Analysis. (n.d.). Chatham Lodging Trust (CLDT). Retrieved March 5, 2025, from https://stockanalysis.com/stocks/cldt/