A Lodging Conundrum

By

Roger Arnold

 | Jul 01, 2014 | 6:00 PM EDT
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Last week I wrote about the stellar performance of grocery stores in the column "A Refresher on Defensive Investing." I have written positively about the sector in the past few years. When I originally wrote about defensive investing in 2011, I included the economy and mid-tier lodging sectors, along with grocery stores, as an area that traditionally performs well during periods of economic weakness. Last November I wrote about the lodging sector and advised, because of its stellar performance as well, that it was no longer a defensive position. Let's review what's transpired for that segment in the past three quarters and consider what is possible for the near future.

The original two companies from the 2011 column were Choice Hotels International (CHH) for the economy sector, and Intercontinental Hotels Group (IHG) for the mid-tier. Their performances have been very different in the past three quarters. Since the beginning of last November, the share price of CHH has only increased by $1, to $47.19, about 2.2% higher....543 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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