American Hotel Income Properties
HOT.UN-T
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He's met them a few times and nearly bought their stock. It was the hotel chain for railroad workers, but have since re-positioned themselves into premiere brands operating in secondary markets like Pittsburgh. They've done a good job of repositioning, but had a poor quarter. True, there are good things in thosenumbers, but it'll take maybe three quarters to work through this transition. Also, hotels are vulnerable to an economic downturn.
He's met them a few times and nearly bought their stock. It was the hotel chain for railroad workers, but have since re-positioned themselves into premiere brands operating in secondary markets like Pittsburgh. They've done a good job of repositioning, but had a poor quarter. True, there are good things in thosenumbers, but it'll take maybe three quarters to work through this transition. Also, hotels are vulnerable to an economic downturn.
He has met with their management a few times. They have transitioned their business from hotels for railworkers and staff, which was a simple and good business. They have transitioned to owning more hotels, generally in B cities in the US. He doesn’t have confidence that this will work out well. Its price has been dropping. He doesn’t recommend selling it this low.
He has met with their management a few times. They have transitioned their business from hotels for railworkers and staff, which was a simple and good business. They have transitioned to owning more hotels, generally in B cities in the US. He doesn’t have confidence that this will work out well. Its price has been dropping. He doesn’t recommend selling it this low.
They owned hotels in smaller US markets along railroad lines. When margins got squeezed they diversified and focused on business travelers. It is cheap and the dividend looks safe. Buying on US GDP growth. Yield 8%.
They owned hotels in smaller US markets along railroad lines. When margins got squeezed they diversified and focused on business travelers. It is cheap and the dividend looks safe. Buying on US GDP growth. Yield 8%.
This was a focused railroad hotel. They did a new contract with the rails, which allows them to resell 20% of unused accommodation to the general public. They focus on suburbia USA. The railway business is less important now, being only 30% versus the 60% it used to be. The stock has been under pressure, and he wouldn’t be surprised to see better numbers coming out. It is interesting and he is looking at it.
This was a focused railroad hotel. They did a new contract with the rails, which allows them to resell 20% of unused accommodation to the general public. They focus on suburbia USA. The railway business is less important now, being only 30% versus the 60% it used to be. The stock has been under pressure, and he wouldn’t be surprised to see better numbers coming out. It is interesting and he is looking at it.
(A Top Pick Aug 30/16. Down 9%.) Hotels that railway employees used to use. They’ve been expanding in the past couple of years into branded hotels, which have been doing fairly well up until the last quarter, where they have been renovating a larger than normal number of rooms. This has a 9% yield.
(A Top Pick Aug 30/16. Down 9%.) Hotels that railway employees used to use. They’ve been expanding in the past couple of years into branded hotels, which have been doing fairly well up until the last quarter, where they have been renovating a larger than normal number of rooms. This has a 9% yield.
They were always known as the railroad hotel as they had contracts with railroad providers. That is now only about 20% of the REIT. They focus on secondary markets in the US and have brands including Marriott, Hilton and Holiday Inn. They came in with numbers that were light. Margin compression was happening at the rail side of the business. There were also some timing issues with regards to a couple of the new hotels. This is a play on US GDP growth. With the US$ where it is, this is probably not a bad time to have US assets. He would like to see another quarter numbers. About 78% payout ratio which is normal. Distribution of almost 9%.
They were always known as the railroad hotel as they had contracts with railroad providers. That is now only about 20% of the REIT. They focus on secondary markets in the US and have brands including Marriott, Hilton and Holiday Inn. They came in with numbers that were light. Margin compression was happening at the rail side of the business. There were also some timing issues with regards to a couple of the new hotels. This is a play on US GDP growth. With the US$ where it is, this is probably not a bad time to have US assets. He would like to see another quarter numbers. About 78% payout ratio which is normal. Distribution of almost 9%.
Tied to the railroad industry, mid-west US. They made some non-rail acquisitions. They had a mini-stumble. This is not a bad entry point below $10.
Tied to the railroad industry, mid-west US. They made some non-rail acquisitions. They had a mini-stumble. This is not a bad entry point below $10.
It is a smaller cap REIT. The payout is high. Most of the earnings are US$ translated back to CAD$, which just appreciated over the last three months. The market is pricing this depreciation in the yield into the stock. He is not expecting a dividend cut, but it is a possibility. AIR B&B’s have not shaken up this industry yet, but they could. He prefers BPY.UN-T.
It is a smaller cap REIT. The payout is high. Most of the earnings are US$ translated back to CAD$, which just appreciated over the last three months. The market is pricing this depreciation in the yield into the stock. He is not expecting a dividend cut, but it is a possibility. AIR B&B’s have not shaken up this industry yet, but they could. He prefers BPY.UN-T.
He is looking at it now. Assets are almost all in the US. Until a couple of weeks ago their properties were rail hotels. They are very specialized rooms and restaurants. Rail workers can have mandated rests. They spent about $400 Million US in the North East to buy Marriot and Hilton hotel locations in lower population areas. They wanted to diversify because of softness in the rail business. They are in the US where the US is growing. It is cheap because they issued equity to make the acquisitions.
He is looking at it now. Assets are almost all in the US. Until a couple of weeks ago their properties were rail hotels. They are very specialized rooms and restaurants. Rail workers can have mandated rests. They spent about $400 Million US in the North East to buy Marriot and Hilton hotel locations in lower population areas. They wanted to diversify because of softness in the rail business. They are in the US where the US is growing. It is cheap because they issued equity to make the acquisitions.
This recently took a hit, because they did an issuance. Issued some shares to repay some debt. They’ve done a pretty good job. Thinks the payout ratio is fine. Hotels are a more cyclical area, so you have to be careful. Trading at a good multiple and has good distribution.
This recently took a hit, because they did an issuance. Issued some shares to repay some debt. They’ve done a pretty good job. Thinks the payout ratio is fine. Hotels are a more cyclical area, so you have to be careful. Trading at a good multiple and has good distribution.
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