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Strategies & Market Trends : Starwood Lodging REIT -- Ignore unavailable to you. Want to Upgrade?

To: Richard Barron who wrote (8)	10/23/1997 10:32:00 AM
From: Sheldon Hochberg	Read Replies (1) \| Respond to of 20

Richard: Can you explain to me the rationale for using FFO as a basis for measurement of value for these companies. Why shouldn't depreciation and interest be factored in in valuing these companies (as they are for others). Is there any book/article that you have read that explains FFO concept and its proper use? Thx.

To: Richard Barron who wrote (8)	10/24/1997 1:02:00 PM
From: Bhag Karamchandani	Respond to of 20

Richard: Thanks.That explains MT's low multiple of 16 in relation to 40 + for other paired REIT's. There are are dozens of health related REITs- do you see consolidations or acquisitions gravitating towards MT the way the hotel REITs have done towards HOT and PAH. As I understand it the advantages that accurue to the Hotel industry should apply to Med. REIT's also, although I recognize that hotel management fees are considerably more lucrative than those for property management. In short, is there any potential for MT to leverage its paired status and improve its multiples the way others have. Any news on Hollywood Park's attempt to resurrect its paired status? Thanks in advance.