Dennis Mitchell, CFA
Lakeview Hotel Investment
LHR-X
COMMENT
Dec 07, 2007
Focused on limited service hotels, secondary markets in Western Canada. If you are concerned about the slowdown and drilling volumes in Western Canada, you shouldn't add to this one. Trades at a huge discount to NAV and offers a very compelling yield. Good management team.
Limited service hotels, primarily in Western Canada but expanding throughout the nation. About an 85% payout ratio. Would like to see them lower their leverage a little bit. Doesn't have a lot of debt coming up for renewal so is not subject to a squeeze. Good strong management team.
Have about 11 or 12 hotels with 5 being in natural gas locations. Do your own research on drill rigs and activity. Very volatile because it is based on gas.
(Top Pick Down 30% 2007-07-16). $0.44 (12.2%) distribution/yr. High fixed cost business, dropped off last year when drilling declined, coming back now. Long term a good place to be. Wait a quarter to buy.
Limited service hotels, primarily secondary markets in Western Canada. Huge leverage to gas prices. If you are bullish on gas this company will be a prime recipient. Very cheap. Not earning their distribution on a trailing 12-month basis.
Limited service hotels with a big exposure to Western Canada. Has taken it on the chin because of weak gas prices. If you own you are probably sitting on dead money until the economy recovers.
Hotel REIT. Diversified. Limited service hotels. If recovery takes hold and there is an up tick in tourism and wages and GDP, the lodging space should to well.
Limited service hotels with central and eastern Canadian exposure. Potentially will do well in the long-term. There are better places to be. Consider selling for a capital loss.
He got out way, way back. The family who owns it carved out a position in the west, which went down, and then the whole sector got hurt. They are having trouble getting profits.
Not a fan of lodging REITs for the duration of the cash flow and the visibility. A lot of exposure to Western Canada. Expect it will be sleepy for some time.