Its difficult to assess the correct NAV on these companies. One way to appraise value is using an income approach on the properties which would not make any of these trusts look good. This is short term however. I remember appraisals of HMT and HOST a couple of years back that depicted them selling at about 1/3 of their value.
Replacement cost is perhaps the best measure to use now if you have a long term perspective.
Does anyone have any ideas what the value of these companies would be using that measure?
ferdie and others- good posts- can you answer this?
RSR is my resource for this information. I think every serious reit investor should subscribe to RSR. It is my understanding that their NAVs are based upon a service they subscribe to. FCH and MHX's NAV are in the $22 range, HMT $13 or so. In this environmt none of that really matters.
If something were to happen like HOT getting acquired which is rumored and there are articles on their board about being in discussions with Six Continents OR if say a CD were to acquire and LQI then things would get very interesting going forward. I do not expect CD to acquire LQI or HOT to necessarily be acquired but such events could give a guide as to forward valuations beyond this most damaging period for lodging reits.
if frediefor would please tell myself what RSR stands for , which resourse he was speaking about , I would greatly appreciate that information. You have alluded to this "source" several time in past postings and it appears to give quite updated information-- thank you in advance