Chatham Lodging Trust has undergone a significant transformation through the spin-off of its higher-leverage portfolio into P/F Lodging and refinancing its 2026 debt. This strategic move aims to create a smaller, safer, and more focused REIT, simplifying Chatham’s balance sheet and allowing for a more conservative dividend payout. Investors need to re-evaluate CLDT as its risk/reward profile, dividend, and growth runway have changed, warranting careful consideration of whether it still aligns with their income and total-return objectives.
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Chatham Lodging Trust: Quiet REIT With Loud Risks After P / F Spin-Off
Chatham Lodging Trust has undergone a significant transformation through the spin-off of its higher-leverage portfolio into P/F Lodging and refinancing its 2026 debt. This strategic move aims to create a smaller, safer, and more focused REIT, simplifying Chatham’s balance sheet and allowing for a more conservative dividend payout. Investors need to re-evaluate CLDT as its risk/reward profile, dividend, and growth runway have changed, warranting careful consideration of whether it still aligns with their income and total-return objectives.