Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Hotel REIT FelCor Lodging Trust
So what: It was a humbling result for a company that bills itself as the operator of "upper-upscale" hotels and resorts. Seems investors were less than impressed with FelCor's ballyhooed 6.2% increase in revenue per available room and totally unimpressed by the company's $42 million net loss for the quarter.
Now what: They'd better get used to it, though. Management predicts that its hotels will continue growing RevPAR in the 6% to 7.5% range for the rest of this year and continue losing money, to boot. Total losses for the year: now anywhere from $115 million to $121 million.
The company is growing revenues more slowly than just about any of its peer hoteliers, losing more money than most, and doesn't even pay a dividend -- which is kind of curious for a REIT. Maybe there's a reason to own it, but if there is one, I must say it escapes me.
Think there's hope for this stock? Add the stock to your Fool Watchlist and find out.
