News Abounds RE: Hotel IndustryToday, (Tues. April 06, 2010) AP writer Chris Rugaber reported that hotels and hospitality have added nearly 50,000 jobs in the last 2 months with hiring continuing to pick up in these sectors. The Globe also covered the sector very positively with an article. Additionally, it was reported that Dubai World has bought into the Fairmont Hotel chain.
Also today, Innvest hit another new RECOVERY record high close of $6.43+.22cents and a new hi trade value of $6.49 with no so-called correction in sight as more and more confidence is restored in the sector and investors turn to it as a forgotten and overlooked opportunity. The sector has turned positive. I think that institutional investors will be the last to buy into the REIT, as usual, as retail investors continue to carry the market. Institutions are waiting for hard-core financial results with respect to REVpar and occupancies. By that time, they will be paying another dollar or two for this stock. The Globe article talked about the construction boom in the hotel industry in Toronto as a new 5-star hotel is about to open its door as other developers scramble to find suitable available design/build opportunities.
The early bird catches the worm. The equity markets and life in general, are all about risk. Without it, there would be no new developments; no new entrepreneurs; no new innovations....no progress. A baby in Edmonton came into this world with its mother's umbilical cord wrapped tightly around its neck leaving the infant "technically brain-dead", although there is disagreement about this diagnosis. A comatose girl in Toronto, for the past 10 years, suddenly opens her eyes and says that she's hungry. Doctors wanted to pull the plug on her many times in the past. SO....where isn't there risk? I almost choked to death on a very small piece of bagel and luckily I was able to reach behind and give my back a solid whack at which point the piece of bagel shot out of my throat like a projectile. I was ready to black out before that. SO...where isn't there risk?