Chatham Lodging Trust

AI-generated fair value estimate for this company.

Method: P/FFO multiple approach: consensus 2026E FFO/share of $1.30 (up from $0.98 in 2025) multiplied by a 10x P/FFO multiple (mid-range for small-cap select-service hotel REITs) yields ~$13.00/share; current price $13.35, market cap $642.6M, 48.13M shares, total debt $434.1M vs. cash $11.3M (net debt $422.7M), TTM revenue $300.4M, dividend $0.40/share (3.0% yield).

Reasoning: An FFO/AFFO-multiple method is the standard framework for an equity REIT since GAAP net income is distorted by depreciation; applying a conservative multiple (vs. current ~10.3x implied) to forward FFO reflects Chatham's modest growth profile, 3.0% dividend yield, and meaningful leverage without assuming a valuation re-rating.