A few highlights from the 4th quarter conference call:
-Under contract to purchase a hotel in Atlanta for $61M. This is a market they have been targeting for a long time.
-Planning to sell one of their existing hotels to fund the acquisition.
-Revpar growth of 5%, led by Louisville up 21%, Tampa up 16%, and Savannah up 12%.
-Tampa seems to have turned the corner. Weak in first three quarters but really strong in fourth quarter and off to a great start in 1st quarter.
-Jacksonville market is still weak. But they are halfway through a renovation which they think will help. Also potential for a brand change next year which should help further.
-Projecting 25% AFFO increase based on midpoint of guidance.
-Very excited by the Houston acquisition. Mentioned that some of top performing hotels in this market are independent luxury hotels. Could be an opportunity for this asset in the future.
Sentiment: Strong Buy