Fredm
TUG Member
I agree with you Fred. But is the hotel side fairing any better? The first thing people cut back on when money is tight is vacations. Same with business clients. They are not filling those hotels as readily as they were 5 years ago?! Seems like the hotel side is suffering just as badly. I just saw an ad pop up on google for me saying Starwood stay 1 night, get 1 night free!
Katherine
Katherine, the 2009 picture is not pretty for the hotel side. You are absolutely right about family and business travel cutbacks.
Is the hotel side fairing any better than VO? For 2009, I think so.
Business will be off comparing year to year. Nonetheless, new hotels are entering the system, and new management contracts are being written.
VO, on the other hand, is at a standstill until credit markets return to normal. Which is the point I was really trying to make.
The thread started with the status of Grand Regina, and discussion expanded to other pipeline questions.
All issues considered, they will be making money, not losing money. It is not growth, but they are not going out of business. Making profits while waiting for the economic climate to improve is not a bad place to be.
Some stockholders may not like it, but the stock has already been pounded into the dirt. Fairly conservative valuations suggest that the current business is worth $65/share. It is trading around $19.
One person's paper loss is another person's longer term buying opportunity.
Meanwhile, those of us who do have occasion to stay at a hotel are getting benefits from the slowdown.
Don't worry, be happy!