Chatham Lodging Trust (CLDT) experienced a positive price movement, driven by broader market dynamics favoring real estate investment trusts (REITs). The Federal Reserve's recent decision to cut the fed funds rate by 50 basis points has created a more favorable environment for REITs, as lower interest rates reduce the cost of debt financing. This shift is particularly beneficial for REITs, which often rely on borrowed capital to fund their operations and growth. As interest rates decline, the attractiveness of REITs increases, offering investors a compelling source of dividend income compared to other investment options with diminishing yields.
The Chatham Lodging Trust stock closed at $9.25, marking a 1.09% increase from the previous close of $9.15.