Lodging has had a volatile year this year- a strong first half followed by a hard second half. In our special focus on lodging this week, we spoke with analyst William Truelove who talked to us a little bit about where the lodging sector stands today.
TWST: From a market perspective, Will, has the group done what you thought it would?
Mr. Truelove: The first half of the year was fantastic, but that market was very conducive to M&A. It was almost a discussion of how many hotel companies would be left standing in the public marketplace. Since the summertime and the credit market meltdown, you have had a complete retraction in the names. Beyond that, I think that the market does also perceive that not only are the takeout premiums gone, but, as Rod mentioned, we are also in somewhat of a decelerating growth environment. It is still good growth but just not accelerating as fast. Concerns are about earnings going forward. When you combine those two, the market action has been far different from what we anticipated. While I would say the business environment has fallen in line with what we thought, I would also say that we completely missed this year’s market reaction.
For the full roundtable forum on the Lodging sector, including a complete sector outlook and stock picks, click here.
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