Chatham Lodging Trust (CLDT) experienced a notable decline in its stock price, driven by broader economic concerns and sector-specific challenges. The latest inflation data released on December 18, 2024, showed a rise in the headline rate to 2.6%, marking the second consecutive month of y/y increases. This uptick in inflation, coupled with lackluster growth figures, has created a troubling economic picture, particularly impacting the hospitality sector. Rising costs and economic uncertainty are pressuring hospitality businesses, including hotel REITs like Chatham Lodging Trust, as they navigate increased operational expenses and potential reductions in consumer spending.
The stock closed at $9.04, reflecting a 5.83% decrease from the previous day's close.