RE: IndustryAs a long, I hope that INN.UN has a good quarter also. But I don't really see the correlation with LGY.UN
LGY appeals to the "high end" of the market catering to the moneyed classes. I suspect they have a lot of American and Asian guests along with businessmen / women. Additional money can be made from restaurants, gift shop rentals, etc. For this to work they need a weak Cdn dollar (get the foreign tourists in) and a situation where people really feel like spending a lot of money and companies are doing well.
INN appeals to the "lower end" of the market - many of their guests drive to their locations. Suspect that they attract people more from Canada than abroad. Rural locations possibly service hunting /fishing excursions - urban customers probably salesmen. For the most part, INN does not offer food as an additional revenue source. My guess is that INN will do better in a less robust economy when people are spending less on holidays. High gas prices will hurt them more than LGY. Throwing a stale doughnut at customers and calling it free breakfast just doesn't cut it anymore. As customer expectations rise, they are starting to install free breakfast stations serving cereal & juice and more. More expense and no extra money for it.
I think we have smart management at INN, example: starting to buy Holiday Inns with their restaurant revenue to get extra cash over room rates.
Although I have only owned for two years, believe that this trust has maintained distributions through thick and thin (SARS, etc.) If they can survive poor overall conditions for their industry - they should do well as their cycle improves.
But we will know soon enough.
Geordie.