Chatham Lodging Increases Common Dividend 29 Percent

Rhea-AI Summary

Chatham Lodging Trust (NYSE: CLDT) has announced a significant 29% increase in its quarterly common dividend, raising it by $0.02 to $0.09 per share. The company also declared a preferred share dividend of $0.41406. Both dividends will be payable on April 15, 2025, to shareholders of record as of March 31, 2025.

The hotel REIT, which specializes in upscale extended-stay and premium-branded select-service hotels, reports strong financial positioning following the pandemic and recent debt maturity challenges. The company cites outperforming RevPAR growth, stabilizing and growing operating margins, and low leverage as key factors enabling increased shareholder returns.

Positive

• 29% increase in quarterly dividend ($0.02 increase to $0.09 per share)
• Low leverage position reported
• RevPAR growth outperforming industry
• Operating margins stabilizing and growing
• Capacity for accretive acquisitions

Negative

• None.

Announces Preferred Dividend

WEST PALM BEACH, Fla.--(BUSINESS WIRE)-- Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) focused on investing in upscale, extended-stay hotels and premium-branded, select-service hotels, today announced that its board of trustees has raised its quarterly common dividend by 29 percent, or $0.02 per common share, to $0.09 per share. Additionally, the board of trustees declared its regular preferred dividend. Both the $0.09 per share common dividend and preferred share dividend of $0.41406 per preferred share are payable on April 15, 2025, to shareholders of record as of March 31, 2025.

Fisher highlighted, “Our management team and board of trustees are confident in our future. We have emerged from the pandemic and a meaningful wave of maturing debt over the past two years in a financially strong position with low leverage and capacity to make meaningful, accretive acquisitions and investments. Operationally, our RevPAR growth continues to outperform the industry, and our operating margins have stabilized and are growing. All of these positive developments increase distributable free cash flow, allowing us to return more money to our shareholders moving forward.”

About Chatham Lodging Trust

Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust (REIT) focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns 36 hotels totaling 5,475 rooms/suites in 15 states and the District of Columbia. Additional information about Chatham may be found at chathamlodgingtrust.com.

Forward-Looking Statement Safe Harbor

Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "plan," "predict," "project," "will," "continue" and other similar terms and phrases, including references to assumption and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: national and local economic and business conditions, including the effect on travel of potential terrorist attacks, that will affect occupancy rates at the company’s hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of the company’s indebtedness and its ability to meet covenants in its debt agreements; relationships with property managers; the company’s ability to maintain its properties in a Fourth-class manner, including meeting capital expenditure requirements; the company’s ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; the company’s ability to complete acquisitions and dispositions; and the company’s ability to continue to satisfy complex rules in order for the company to remain a REIT for federal income tax purposes and other risks and uncertainties associated with the company’s business described in the company's filings with the SEC. Although the company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date hereof, and the company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250303707112/en/

Dennis Craven (Company)

Chief Operating Officer

(561) 227-1386

Source: Chatham Lodging Trust

FAQ

What is the new quarterly dividend amount for Chatham Lodging Trust (CLDT)?

The new quarterly dividend is $0.09 per share, representing a 29% increase from the previous amount.

When will CLDT's new dividend be payable to shareholders?

Both common and preferred dividends will be payable on April 15, 2025, to shareholders of record as of March 31, 2025.

How much is CLDT's preferred share dividend for Q1 2025?

The preferred share dividend is $0.41406 per preferred share.

What factors enabled Chatham Lodging Trust to increase its dividend?

Strong RevPAR growth, improving operating margins, low leverage position, and increased distributable free cash flow enabled the dividend increase.

How has CLDT's operational performance been relative to the industry?

According to the announcement, CLDT's RevPAR growth is outperforming the industry, with stabilizing and growing operating margins.