Chatham Lodging Trust is experiencing a notable decline in its stock price, driven by broader challenges in the hotel real estate investment trust (REIT) sector. The sector is grappling with a slow recovery in travel demand and ongoing financial pressures, which have led companies like Pebblebrook Hotel Trust to maintain minimal dividend distributions. Pebblebrook's decision to declare a quarterly dividend of just $0.01 per common share underscores the cautious approach being adopted by hotel REITs to preserve capital amid uncertain market conditions. This conservative stance reflects the industry's focus on maintaining financial flexibility over shareholder returns as it navigates a challenging environment.
The stock of Chatham Lodging Trust (CLDT) is down 6.83% in pre-market trading on Monday, December 16, falling to $9.01 as of 9:20 AM ET.