Hotel/Motel Sector Takes a Drubbing (Continued from Home Page)
June 2, 2008
SuperTel does not have international exposure----but just the same we like it for its smaller town domestic exposure--sometimes having the only motel in a smaller town. Additionally the risk/reward appears to be better with SuperTel as they have consistently raised the dividend---pay a dividend between 9 and 10% and seem to have a fairly well defined strategy.
With the above in mind be aware that you must diversify all your holdings--in particular in the current economic environment. SuperTel is less than 1% of our personal portfolio and thus is not a large consequence if we are wrong about them.
Overall we need to watch for further weakening in the Hotel/Motel REIT sector as it may portend larger things to come.