With high fuel prices travelers are still going to travel this summer..... but will go shorter distances and stay in less expensive motels. This recession has been the pits for SPPR the last couple years but cabin fever may drive anxious home bound folks to hit the road.
so in that scenario occupancy would be up, which in their earnings report it wasn't. Also, for those that doubted me, like Mr. Cashflow Analysis, management took a huge writedown on the value of their portfolio, which I expected. Valuing this class of hotel/motel is impossible, and the only thing more impossible is selling them at a rapid pace. Overall, earnings were like eating a big cardboard sandwich; not awful, but certainly not good. Also, I'm sure everyone noticed they registered to sell more securities, a lot more (60 million). these guys are ambitious about putting money to work and are amassing a mountain of treasure to do so. this is good depending on the deal they can strike to raise the additional capital. in the end, the cost of capital determines how successful this REIT will be.