Chatham Lodging Trust is a publicly traded real estate investment trust (REIT) that specializes in the acquisition, ownership, and development of upscale extended-stay and premium-branded select-service hotels. Headquartered in West Palm Beach, Florida, the company's portfolio consists of approximately 40 properties with over 6,000 rooms located across the United States, particularly in high-demand urban and suburban markets with high barriers to entry. Chatham's properties operate under globally recognized franchise brands, including Marriott (Residence Inn, Courtyard, TownePlace Suites), Hilton (Homewood Suites, Hampton Inn, Home2 Suites), and Hyatt (Hyatt Place).
The company's business model focuses on owning the physical real estate and leasing the properties to its taxable REIT subsidiaries, which then engage third-party management companies—primarily Island Hospitality Management—to handle day-to-day hotel operations. Revenue is generated primarily through room rentals, driven by occupancy rates and average daily rates (ADR). By focusing on select-service and extended-stay formats, Chatham benefits from a leaner operational model with lower labor and overhead costs compared to full-service luxury hotels, allowing for higher operating margins and resilient cash flows.
