This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ashford's CEO Discusses Q2 2012 Results - Earnings Call Transcript

In fact, PKF hospitality research recently affirmed its strong forecast of RevPAR growth, projecting RevPAR for U.S. hotels will increase 6.6 in 2013, and 7.8% in 2014. As a result, we are very bullish on the upside potential of this lodging cycle.

We believe this remains a very appealing time to invest in lodging stocks. We are still early in the cycle, perhaps about a third to a half of the way through, what we seek to be an extended period of growth.

Additionally, we expect history to repeat, mainly that this lodging cycle peak will exceed the prior peak in terms of RevPAR, EBITDA and hotel values.

A key driver for this healthy lodging recovery is the lack of new supply. Construction financing for lodging remains very difficult to obtain. While we have commented on this favorable demand, supply and balance before, the significance cannot be under estimated. The forecast for PKF in this regard have remained unchanged, projecting new supply growth for 2012, 2013, and 2014, a .5%, 1.0%, and 1.6% respectively.

New supply is expected to remain on average well below 2% annually, through at least 2016, which is less than the average annual change in the nations lodging supply, from 1988 through 2011.

For the foreseeable future, U.S. hotel demand is expected to significantly outpace available supply. If you consider that lodging is already reaching peak demand levels in many submarkets, the absence of new hotel rooms coming on in that market, should lead it to high room rates.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,928.20 -142.20 -0.79%
S&P 500 2,089.46 -25.03 -1.18%
NASDAQ 4,939.3270 -77.6020 -1.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs