A Budget Conscious REIT For A Budget Conscious Investor

One of the reasons that I like Chatham is because of the company’s focus on limited service and more specifically, upscale extended-stay and premium-branded select service hotels. I like this category because the hotels have higher profit margins than full service hotels.


  • One of the biggest differences between a limited-service hotel and a full-service hotel is the limited-service hotel's lack of in-house drinking and dining options.
  • There is no doubt that Chatham and most all lodging REITs have experienced secular volatility YTD, in large part due to the increased supply hurdles and modest RevPAR growth.
  • While Tax Reform is not a direct catalyst to support my BUY thesis of Chatham, it is clearly a policy that will enhance corporate profits.
  • I am optimistic that Corporate Tax will get done and I am maintaining exposure in my favorite Limited Service Lodging REIT.