Why us HOT changing to a C Corp. Is the whole company channging or are they just spinning off a management company and holding all the property in a REIT. Tell me where I can read more about this. Most appreciative.
they are underwater and don't think they won't bring this back up to where it belongs in short order. coupled with the buy back, the abscence of tax loss selling, and the real estate funds dumping because HOT is no longer a REIT with a big yield, the pressure will be off and 35 -40 is realistic by the end of january.
I have held the stock for quite some time and have never sold a single share. I think the long term prospects are excellent and you can see that the board members and executives of the company have also not sold significant positions, but in fact were buying at 45. Hang on! 'W' should also be a hit.
You can read about this in the Edgars SEC filings and company press releases of late summer - but basically, Congress abolished paired-shared REITS post ITT-merger, and in any case mangement fees, franchise fees etc. were bad REIT income and growth of this sector would exceed the bad income limitations for REIT purposes, so the company will have a REIT sub. for the predated assets (including ITT) thus will still provide a modest dividend but can grow and act like a C-Corp without the REIT complications and take full advantage of its operating capabilities and size.
Will Starwood convert to a C-Corp?, and if so what is the impact on their current dividend yield stated at around 8.5%. Presumably, the dividend will be cut by the corporate tax expense of say 30-40%? Any insight will be appreciated.