For now, at least, they are resting at the high end of the cycle. The prices of some of the larger hospitality stocks have been out of line with their financial statements, said Jason N. Ader, an analyst at the brokerage firm Bear, Stearns. Investors were concerned about higher interest rates and we saw an excess of room supply and the potential for a slow economy. That put stock prices at lows we hadn't seen. The sector generates about 75,000 jobs in the District and nearly 160,000 in the region.
Most companies plan to expand as long as the economy stays healthy.
Marriott International expects to add 175,000 rooms by 2003. Our stocks have taken a beating as investors are looking to high-tech stocks for astronomical returns. The potential growth in technology stocks has distracted a lot of investor capital from traditional companies like ours. The health of REITs could see considerable changes, analysts and other experts say. REITs essentially are passive investment vehicles for real estate owners, who can avoid paying corporate income tax by distributing more than 90 percent of the REIT income to shareholders through dividends.