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Fundamental analysis CLDT (Chatham Lodging Trust)

Updated on 06/08/2026

Method and analysis by Lubin Danilo, founder of Lubin Investment. Score computed automatically, with no human opinion.

We analyzed Chatham Lodging Trust stock against the 10 quality criteria of Lubin Investment. The company gets a quality score of 7/10, meaning medium quality, and a P/FCF valuation multiple of 8.5×.

This is the setup we look for: Chatham Lodging Trust passes a large majority of our quality criteria while trading at a low free cash flow multiple. That is exactly the "quality company at the right price" profile, the one worth a closer look.

Sector: REIT - Hotel & Motel. Listing: US. Current price: 12.45 USD.

Lubin scoring methodology

Chatham Lodging Trust (CLDT)'s score is calculated automatically from 10 objective financial criteria, with no human intervention or opinion. Each criterion is validated (YES / PARTIAL / NO) based on thresholds drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran). The final score is the sum of validations.

The thresholds come from the financial literature, not from our preferences: see the valuation work of Aswath Damodaran (NYU Stern) and the SEC investor education resources (investor.gov).

Chatham Lodging Trust's accounts are public: you can check every figure in its official 10-K filings with the SEC (EDGAR).

The 10 quantitative criteria analyzed

  1. Profitable: net margin > 5%
  2. Growing revenue: revenue growing > 10%/year over 5 years
  3. Growing earnings per share: FCF per share adjusted for stock-based compensation, > 10%/year over 5 years
  4. Share count under control: stable or declining (net buybacks = value creation for shareholders)
  5. Growing revenue per employee: revenue and revenue per employee both grow ≥ 10%/year over 5 years; partial when only one growth driver reaches its tier (fallback: free cash flow margin > 10% when employee history is unavailable)
  6. Expanding margins: operating margin widens over 5 years (operating leverage)
  7. Return on invested capital: Cash ROCE > 15% per year
  8. Debt under control: net debt repayable in less than 3 years of free cash flow
  9. Earnings converted to cash: free cash flow exceeds accounting net income
  10. Net collection period: short or negative cash conversion cycle

Its price against peers

Against the 5 other REIT Hotel & Motel stocks we have scored, Chatham Lodging Trust trades at 8.5× its free cash flow, versus a median of 10.5× for that basket. On price alone, Chatham Lodging Trust is therefore cheaper than its peers. That says nothing about its quality: at Lubin Investment, quality and price are judged separately, and a low multiple is only a bargain if the quality holds up.

Frequently asked questions

Is Chatham Lodging Trust a quality stock?

Chatham Lodging Trust gets a quality score of 7/10 (medium quality), calculated over the 10 Lubin Investment criteria: profitability, revenue and free cash flow growth, share buybacks, margins, debt and return on capital.

How is Chatham Lodging Trust's score calculated?

The score is the total of validated criteria (YES / PARTIAL / NO) using thresholds drawn from the financial literature (Warren Buffett, Mauboussin, Aswath Damodaran), automatically and with no human opinion.

What is Chatham Lodging Trust's P/FCF?

The price-to-free-cash-flow (P/FCF) multiple of Chatham Lodging Trust stock is 8.5×. At Lubin Investment, valuation is judged separately from quality.

Where to see Chatham Lodging Trust's full analysis?

The full interactive analysis (10-criteria detail, history, P/FCF valuation, sector comparisons) is available at https://lubin-investment.com/analyse/CLDT?lng=en.

Other stocks in the REIT Hotel & Motel sector

Go further

👉 See the full interactive analysis of CLDT

Other resources : All stocks in the REIT Hotel & Motel sector.