Form 4: Chatham Lodging Director Receives 2025 Board Compensation

Chatham Lodging Trust Director Mary Elizabeth Higgins was granted 11,546 common shares as compensation for her 2025 board service.

Summary

• Mary Elizabeth Higgins, a Director of Chatham Lodging Trust (CLDT), acquired 11,546 common shares.
• The transaction occurred on January 15, 2026, at a price of $6.93 per share.
• This share grant is compensation for her service on the board of trustees in 2025.
• The grant represents the share-based portion of the company's previously disclosed annual compensation to its trustees for fiscal year 2025.
• Following this transaction, Ms. Higgins beneficially owns 49,782 common shares.
• The per-share value of $6.93 was determined by averaging the closing prices of CLDT common shares on the New York Stock Exchange for the last ten trading days of 2025.
• The transaction was made pursuant to a Rule 10b5-1 plan.

Sentiment

Score: 6

Explanation: The filing reports a routine, expected equity compensation grant to a director, which is a neutral event but slightly positive as it aligns director interests with shareholders. It does not indicate any new operational or financial performance information.

Positives

• Director compensation in shares aligns the interests of the director with shareholders, fostering long-term value creation.
• The transaction is part of a previously disclosed compensation plan, indicating transparency and predictability in corporate governance.

Future Outlook

The filing details a compensation grant for past service and does not provide specific forward-looking statements or guidance regarding the company's future performance or strategy.

Management Comments

• Dennis M. Craven, as Attorney in Fact, signed the filing on behalf of Mary Elizabeth Higgins.

Industry Context

This routine insider transaction reflects standard corporate governance practices where directors receive equity compensation for their board service. Such grants are common across the REIT sector and broader public companies to align director incentives with shareholder value.

Comparison to Industry Standards

• Equity compensation for non-executive directors is a common practice in the U.S. public company landscape, including the lodging REIT sector, aligning director interests with long-term shareholder value.
• The method of valuing shares based on an average of closing prices over a period (last ten trading days of 2025) is a standard and transparent approach for determining compensation value, comparable to practices seen in other publicly traded companies.

Stakeholder Impact

• Shareholders: The grant of shares to a director aligns their interests with shareholders, potentially fostering better long-term decision-making.
• Employees: No direct impact on employees is indicated by this compensation filing.

Next Steps

• No specific future actions or milestones are mentioned beyond the completion of this compensation grant.

Key Dates

Recommendation

This Form 4 reports a routine, pre-planned equity compensation grant to a director for past service, which is an expected corporate governance event. It does not provide new material information about the company's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. The transaction itself is neutral to slightly positive due to incentive alignment, but not significant enough to alter a 'hold' stance based solely on this filing.

Keywords

Chatham Lodging Trust, CLDT, Form 4, Insider Transaction, Director Compensation, Equity Grant, Share Grant, Mary Elizabeth Higgins, Corporate Governance, NYSE