Here's What's Important:In my opinion, the 4thQ 2009 results plus the year-end overall results, were entirely predictable given the state of the global economy with respect to the travel and hospitality industry. Q4 + 1stQ periods are the lowest point in the year for the lodging industry and as Kenny Gibson stated during the course of the teleconference: (I am paraphrasing) "This has been the worst year I ever seen in 25 years of being in this business". "I believe that the worst is now behind us as there are signs of improvements in selected markets". "Toronto should give us a very strong push as it hosts the G20 Summit this summer". This Summit will have every hotel in and around the downtown booked up with delegates and media reps. The Gay Pride Festival in Toronto also coincides with this period. I understand that Pride officials are changing the date slightly for the Parade etc. to accommodate the G20.
I really feel that the slight drop in Unit price last Friday was strictly a "knee-jerk" reaction by some novice investors. What is important is the fact that Management has officially decided to turn the Trust in to a "Stapled-REIT" and this will draw thousands of new investors to it. Volumes have already picked up today on the news that Innvest will become, or continue to be, a tax-advantaged investment. We do need to know more though. We need to know what impact this reorganization will have on the monthly distribution and on the tax situation for the REIT and for the individual unitholder. I now plan to continue to hold long-term straight through into the future. I had been thinking to restructure my investment if the REIT couldn't reorganize in to a "stapled-REIT". I think exciting and profitable times lay ahead for the long-term investor now and the strong uptick in price seems to confirm this. Innvest is my largest single investment and I believe that our Mangement is very capable and adept at working for the best interests of all the stakeholders.