Chatham Lodging Trust's stock faced downward pressure on December 12, 2024, amid a broader decline in lodging stocks and a challenging market environment. The Dow Jones Industrial Average fell by 234 points, while the Nasdaq and S&P 500 also saw declines, contributing to a negative sentiment across the hospitality sector. Despite Alliance Global Partners initiating coverage on Chatham Lodging Trust with a Buy rating and setting a target price of $12, the stock was unable to escape the sector-wide downturn. Additionally, the hotel industry is grappling with increased operational costs following the Autumn Budget, with many hoteliers reporting significant cost hikes due to rising National Insurance and minimum wage increases. This financial strain is forcing many to consider raising room rates and cutting staff hours, further impacting investor sentiment.
The Chatham Lodging Trust (CLDT) stock closed at $9.75, marking a 1.32% decline during the trading day, and continued to fall by an additional 3.08% after market close, reaching a current price of $9.45.