Chatham Lodging Trust (CLDT) is experiencing a significant price drop, influenced by ongoing challenges in the U.S. hotel industry. According to recent data, hotel conversion activity remains below the long-term average, with only 1,103 hotels undergoing conversion as of October 2024, compared to the 20-year average of 1,424. This muted activity is partly due to higher interest rates and construction costs, which have hindered new hotel developments and conversions. Additionally, the number of hotel closures in 2024 has been elevated, with 742 hotels shutting down, 68% of which were independent properties. This trend indicates a challenging environment for hotel operators, impacting investor sentiment towards hospitality-focused real estate investment trusts like Chatham Lodging Trust.
The current price of CLDT is $8.00, reflecting a 16.67% decrease from the previous close of $9.60.