ATLANTA The hotel industry and those determined to invest in it have not seen the last of initial public offerings (IPOs). However, when they do roll out again, such offerings might well be tied to new-wave lodging-related entities rather than mainstream hotel ownership and operating companies.
Such was the contention of Dr. Jack Corgel, locally based managing director for the Hospitality Research Group of PKF Consulting. As he explained, mounting a public offering is largely dependent on the laws of supply and demand, and at this time, demand for shares of lodging stock is virtually non-existent.
However, Corgel pointed out that those looking for the next IPO to come out of the ranks of hotel developers, owners and operators may well be looking in the wrong place. It s entirely possible, he said, that the next such offering will encompass one of the new hotel procurement or reservations partnerships or perhaps one of the taxable REIT subsidiaries that will come to the fore after [the REIT Modernization Act takes effect]January 1, 2001. (10/10/00) Michael Billig