IRVING, TX— In response to those who question why hotel REITs have fallen from loftier levels a year ago, FelCor Lodging Trust EVP/CFO Richard O’Brien bluntly pointed out: “It was a tough year [for hotel REIT stocks in 2001]as a result of the softening of the economy, which was then exacerbated by the aftermath of the tragic events of Sept. 11.” However, the FelCor executive similarly expressed a considerably more positive take on the lodging-property-ownership scene going forward. “We [at FelCor]are optimistic for lodging stocks in 2002. Moreover, RevPAR growth in 2003 and 2004 should be strong as lodging demand improves as the economy recovers and supply growth is anticipated to be less than 1% for those years,” he maintained. The way O’Brien sees events— and market reaction— unfolding is that “[per-share] prices of REIT stocks will move in advance of improving lodging demand…as [they]did in the early 1990s.”—Michael Billig
