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

To: Grommit who wrote (36858)	3/6/2010 12:17:24 AM
From: Paul Senior	Respond to of 78655

Grommit. Hotel reits. I recently bought a few shares of DRH. I'm not so confident that I understand the complex (to me) accounting involved with hotel reits. Or the other issues that hotel reits face. So I'm not so sure I'm talking about a value stock with DRH. The hotel business is still suffering. I presume there's some bottom (We seem to have reached it, and we may be moving up), and that at some time, the hotel reits will be back in some favor. I've wanted to position myself in a hotel reit. As a tracking stock. Something that seems to have all its debt issues under control and at a level which will allow the company survive now and grow later. I have chosen DRH. DRH has no debt maturing until Q4 2014. DRH has no floating debt. DRH has no corporate debt. DRH has $787M in non-recourse, property-specific debt. Management seems to be operating the company with the same view that I'm looking for from a hotel reit. (i.e. deleverage, preserve liquidity, survive, get set now for opportunistic activities later) This is far different from what I have looked for from hotel reits in past --- growing revpar, AFFO per share, distribution yield, and so on. I'll look at HPT; it might be the better buy. For me now though, I'm okay with just the little DRH I have. finance.yahoo.com phx.corporate-ir.net