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Wow–Those Lodging REITs have Been Hammered

I haven’t seen much discussion on the site about the Lodging REITs (and their preferreds), but as I was looking at the ‘big loser’ spreadsheet it was totally littered with lodging preferreds getting hammered lower by 2-9%!!

Of course the hated Ashford Hospitality (AHT) preferreds took the biggest hits–you can see them here. This is a REIT with an extremely heavy debt load–there is not much room for poor business conditions–and between the corona virus and some softness in the industry this company could be facing a make or break situation.

Hersha Hospitality (HT) preferreds also came under heavy selling–see the issues here–as did the Summit Hospitality issues, Sotherly Park Hotels and others–the entire list of lodging REIT preferreds is here.

The point is that there may be bargains being created—and again maybe not. Not only will the corona virus play havoc with lodging REITs, but fundamentals appear to already be deteriorating in particular in New York City.

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