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Chatham Lodging Trust Message Board

  • cwebjohn cwebjohn Aug 23, 2011 12:11 PM Flag

    Chatham Uncertainty

    So we grabbed our 5 hotels we wanted and split ways with InnkeepersUSA on the 64 hotels that we would have had a 9% share in.

    On one hand we do not have to put up cash for this ownership interest in 64 hotels. On the other hand we do not get the operating profit that might have resulted in the partnership.

    My gut tells me that Cerberus had a plan to sell most of the assets that were not in the main lodging cities and keep those in the largest markets. This would allow for Cerberus to retain a large stream of FFO in the partnership. Chatham would have been able to purchase select group of hotels within the partnership. However, Chatham would have had to use loans to finance these transactions from what it sounds. Chatham's management does not want to put more available equity in the market at this time, which I believe is smart. Having more liquidity means more dilution and with the management's shares being purchased in the $15+ range it would really sting.

    My belief is that Chatham will have to close on this hotel in Pittsburgh before any other deals can go through. This deal has been on hold for a long time and it is getting frustrating because we are not seeing the FFO projected from it like we had hoped. This has caused some anxiety for investors.

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    • I am pleased with the stock price recovery so far, but it's with lower volume and maybe that's okay too.
      I think 11.64 or so could be resistance..see the drop 3 months ago..Once we surpass that price, then we could see 13 very soon.
      Increased earnings,higher dividend will get us back to 16 by springs end 2012

    • Well, the market is correct in that the price is what people are currently paying. This is what makes it correct. Its just as abstract to assume that the price should be higher based on NAV. There is no rule set in stone that states PPS should be correlated to NAV. Of course, for many companies there is a strong correlation however the reality is a product is only worth what someone else will pay for it. Right now, CLDT is worth $10 plus change.

      I am interested in this one at the current price. I sold out a while back before the plunge because I like the background of the current executive team. I am waiting patiently for the next report before I pull the trigger.

    • We are getting slaughtered on the market now. I guess it becomes even a better deal at these prices.

      The price to NAV is incredibly great for the dividend investor. I mean seriously, how can these levels be sustainable? You cannot tell me that the market is not manipulated. I disagree with those who say the market is always correct.

    • Also, the reality is that we are hitting a big rut in the Hotel REIT industry. This near-recession period is causing a major damper on such investments. My goal is to purchase as many shares as possible due to the underlying strong balance sheet and properties that are in major markets.

      We will have to see what happens this quarter, as far as ADR, FFO and Net Income. My concern is that the market will deteriorate even further. But, I remain bullish in the long-term due to the assets of Chatham and the strong management that exists.

      • 1 Reply to cwebjohn
      • " My concern is that the market will deteriorate even further. But, I remain bullish in the long-term due to the assets of Chatham and the strong management that exists. "
        groaning...keep paddling..we're in the same boat..no..canoe

        I picked up shares under 10.00 but my break even is in the 14's.
        I will buy more shs with the divs when they come.

        Ya think they want to renegotiate the deal lower?

        I know that the next quarter or two's results are key to growing the share price and dividends.
        I am surprised that no insider buying has occurred at these fire sale prices.
        I'm guessing (wishing) that there is an announcement coming that inside buying would've broken the rules.

        Will Cldt lose their 2 mil deposit on Innkeepers?

        Hang in there

 
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