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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Radley who wrote (35053)	8/8/2009 8:34:10 PM
From: Grantcw	1 Recommendation Read Replies (1) \| Respond to of 78751

TexasDude, I agree with you that the 9/30 debt payment is a risk, but it's only $9.5M. The company thinks they have options and because of the size of the loan, I believe them. I'd rather have $9.5M to deal with than other hotel companies' $200M. But, I appreciate you bringing up this risk. It is something to consider. In regards to ADR decline below the industry, they were profitable on a net income basis this quarter which is rare these days for any hotel company and shows that they're dealing with their fixed expenses better than other companies are. Thanks, cw

To: Arthur Radley who wrote (35053)	8/8/2009 11:09:45 PM
From: Paul Senior	1 Recommendation Read Replies (2) \| Respond to of 78751

Distressed $1-2M hotels/motels should provide a good opportunity for the Patel clan and other Indian immigrants.* (Supertel with enterprise value of $230M owns 120 hotels in 24 states.) For a recent immigrant or someone already in the business, a hotel/motel purchase is a good way to buy yourself/family members a job, put family members to work, and get authorization from Feds to bring over more relatives (since the family sponsor can guarantee to the gov't that the arrivals have a job). There will be a market demand for these hotels from this category of buyer. Although...I wouldn't want to be in a tough situation and have to negotiate a sale with these sharp guys. *"43% of the 47,000 hotels and motels in the USA are owned by Indian-Americans."