Hospitality Properties (HPT ) and La Quinta (LQI ): Maintains 5 STARS (buy) Analyst: Raymond Mathis Despite any impact on the hospitality industry from new terrorist attacks in Europe, S&P remains bullish on these two hotel operators, neither of which owns properties overseas. La Quinta has relied chiefly on domestic leisure travel to post industry-leading growth in revenue per available room, not international travel. Hospitality Properties' structure provides for guaranteed minimum payments from tenants. Also, the recent pullback in its shares has pushed the yield up by more than 6.6%. S&P views these stocks as undervalued and likely to continue outperforming the market.
Definitely, but it was as close to a sure thing as you're likely to find though making a 3% gain in a two week holding period won't make you rich unless you do it often. It's a moot question now since it's already been called.
I do not know if anyone has read the full S&P report, but they are extremely high on management. With right reason, HPT seems to make the right moves. They buy hotels when everyone else sells and sell when everyone else buys. HPT is strong yet accomodating with their lease terms. And the recent retirement of the preferred stock is another example of making the right decision. IMHO.