Chatham Lodging Trust

CLDT: Is Chatham Lodging Trust Halal?

Chatham Lodging Trust

NYSEReal EstateUS

$13.79

+1.70%

Market Cap: 643.7M

Compliance Status

Not Halal

Screened on Sep 2, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is Chatham Lodging Trust (CLDT) halal? Not Halal. Based on AAOIFI screening, Chatham Lodging Trust passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Quote this verdict

HalalScreener rates Chatham Lodging Trust (CLDT) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Sep 2, 2026. Source: https://halalscreener.app/en/stock/CLDT

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

67.3% of 30.0% limit

What this means for you

Most scholars advise not holding CLDT

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About Chatham Lodging Trust

Chatham Lodging Trust operates as a self-managed, publicly traded real estate investment trust (REIT) primarily concentrating its investments on upscale extended-stay hotels and premium-branded select-service properties. As of September 30, 2020, the company's asset base included interests in 86 hotels, providing a total of 12,040 rooms and suites. This comprises 40 wholly-owned properties, which collectively offer 6,092 rooms and suites across 15 states and the District of Columbia. Furthermore, the trust maintains a minority ownership in the Innkeepers joint ventures, which operate 46 hotels featuring an aggregate of 5,948 rooms and suites.

Sector: Real Estate · Industry: REIT - Hotel & Motel

Shariah Compliance Status

AAOIFI Standard 21Updated Sep 2, 2026

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Peripheral exposure (still halal, purify this share)
4.0%

Primary business is permissible. AAOIFI allows up to 5% revenue from incidental non-compliant sources, provided the share is purified.

  • REIT - Hotel & Motel: estimated 4.0% peripheral exposure (AAOIFI industry average)

Use the Purification Calculator to compute exactly how much of your dividend income to donate.

Compliance History

  1. Not Halalnow

    since Aug 2026

  2. Under Review

    until the change above

  3. Not Halal

    until the change above

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q2 2026Data source: EDGAR
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Frequently Asked Questions

Is Chatham Lodging Trust (CLDT) halal to invest in?
Chatham Lodging Trust (CLDT) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did Chatham Lodging Trust get a F compliance rating?
Chatham Lodging Trust (CLDT) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 67.3% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Chatham Lodging Trust's Shariah verdict?
Chatham Lodging Trust's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Chatham Lodging Trust re-screened for Shariah compliance?
Chatham Lodging Trust (CLDT) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Sep 2, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.