We were lucky to get out of AHT. It was gotten whacked over the last week. The risk on AHT, from my understanding, is that they've bought a good chunk of their portfolio in the last 5 years and therefore their PPE could be higher on the books than in market value. Their mezzanine loans seem to have gotten them down recently though...
That being said, I bought some more FCH today as, if my calcs are right, I've got, from their financial statements on yahoo, a PPE/Room of $91k vs. a debt/room of $62k, and a big portion of their portfolio is in Embassy Suites. $91k room is a very favorable ratio compared to my analysis of the other Reits and based on the fact that they're mostly a Suite Hotel owner. The name of the game these days in Hotel Reits is to be a survivor, and I don't see them being underwater from a market value to debt perspective.
Also, they did a huge renovation of hotels in 2008 and are gaining market share, with few purchases of hotels in the last few years.
Still down seemingly 90% from its high. I see it coming through this mess.
Still like SPPR which has not fallen much in the last week though Hotel Reits have in general.
cw |
