what are your thoughts on the Solomons hotel purchase? Price seems Ok and fits in with a nearby lower room rate motel they own. But no mention was made whether this would add to earnings in the near term. Or did I miss it? Comments?
i'm not sure that it's good or bad that they're buying into a market where they're already owners. Does this give them more insight into what they're in store for? Maybe. Also, in order to judge whether this is a good investment, we'll need to see what the rate of capitalization is. I would look at this as a positive since they their properties in that region perform better than those in the midwest. It will begin to impact earnings once the sale is complete, which could be a little while; a week, a month, 3 months, who knows? Overall, this is a positive, but just the beginning in their turnaround.