In my recent article on Host Hotels & Resorts (HST), I argued that despite a heavily depressed sector, there are some hidden gems, which are capable of surviving the crisis and provide exceptional returns once the COVID-19 abates.
However, while screening the lodging REIT sector, I found some very risky companies, which are unlikely to survive the crisis. Ashford Hospitality Trust (AHT) is one of them; and, perhaps, the riskiest of them all.
To increase the probability of weathering this storm successfully, companies (REITs) have to possess the following characteristics:
- Sufficient