Form 4: Director Grissen Boosts CLDT Stake with Share Grant

Chatham Lodging Trust Director David Grissen received 15,515 common shares as part of his 2025 board compensation, increasing his direct beneficial ownership to 46,987 shares.

Summary

• David Grissen, a Director of Chatham Lodging Trust (CLDT), acquired 15,515 common shares.
• The shares were granted on January 15, 2026, as compensation for his service on the board of trustees in 2025.
• The per-share value for the grant was $6.93, calculated as the average of the closing prices for CLDT common shares on the NYSE for the last ten trading days of 2025.
• This grant represents the share-based portion of the company's previously disclosed annual compensation for its trustees for fiscal year 2025.
• Grissen elected to receive 50% of his cash election annual base fee in shares.
• Following this transaction, Grissen directly beneficially owns 46,987 common shares.
• The transaction was made pursuant to a Rule 10b5-1(c) plan.

Sentiment

Score: 7

Explanation: The filing indicates a routine, pre-planned compensation event for a director, which is generally positive for aligning interests but not a significant market-moving event. The director's increased stake is a minor positive.

Positives

• Director David Grissen's increased share ownership aligns his interests more closely with those of shareholders.
• The use of share-based compensation for board service is a common practice that encourages long-term commitment and performance.
• The transaction was executed under a Rule 10b5-1(c) plan, indicating a pre-arranged and transparent compensation structure.

Negatives

• The issuance of new shares, even for compensation, can result in minor dilution for existing shareholders, though this is standard practice.

Future Outlook

No specific future outlook or guidance is provided in this Form 4 filing, as it pertains to a past compensation event.

Industry Context

Share-based compensation for directors is a standard practice across many industries, including the lodging and REIT sectors, to align director incentives with shareholder value creation.

Comparison to Industry Standards

• The practice of compensating directors with equity is a widely accepted corporate governance standard, aligning with practices seen in other REITs and publicly traded companies.
• The valuation method (average of closing prices over a period) is a common and transparent approach for determining the value of equity grants.

Corporate Governance

Related Party Transactions

• The grant of 15,515 common shares to Director David Grissen constitutes a related party transaction, as it is compensation for his service on the board of trustees.

Stakeholder Impact

• Shareholders: Minor positive impact due to increased alignment of director's interests with shareholders; negligible dilution from the share issuance.
• Management/Directors: Confirms the compensation structure for board service, providing equity incentives.

Key Dates

Recommendation

This Form 4 filing details a routine, pre-planned equity compensation grant to a director. While it shows alignment of interests, it does not present new information that would fundamentally alter the investment thesis for Chatham Lodging Trust. It's a standard operational disclosure, not a catalyst for a change in investment recommendation.

Keywords

Chatham Lodging Trust, CLDT, David Grissen, Form 4, Insider Transaction, Share Grant, Director Compensation, Equity Compensation, Beneficial Ownership, Rule 10b5-1