the Hotel sector - will it perform in the coming quarter???

SNIPO (+)

SNIPO (+)

Senior Equity Analytic

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Collecting shares of the hotel sector, would be a right decision?

Tiger

Tiger

Assistant Vice President - Equity Analytics

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Location : Dubai

To answer your question you have to mention the reason for collecting Hotel sector.

Leo_pold

Leo_pold

Manager - Equity Analytics

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Naturally the hotel sector is expected to perform well in this quarter as this is the main tourist season. But there are two things to remember. First, the hotel sector is still a part of the CSE. If CSE is to go further down, we cannot expect anything better from hotels. Second, the hotel sector is one of the most overvalued sectors in the CSE. So even at these reduced prices, most of the hotel shares are still remaining in the overvalued region. So it's best to wait and see what will happen in the market before start collecting, in my personal view. As Tiger mentioned, it's impossible to comment on your specific situation without knowing your intentions.

Thank you..

This is no buy or sell recommendation. Please do your own research before you make your moves..

glad

glad

Senior Manager - Equity Analytics

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One should be cautious with Hotel sector. In my view the hotels which did massive expansion has also increased their loans. So for the next 5 to 6 six years most of their income will go to repay loans and interest. For long term this should be good but for short term I wonder.

Light of Hope

Light of Hope

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I think these over valued at the moment. this is the problem, when the bull run came, people started giving valuations for the stocks for including the coming 2-4 quarter results. I bet the coming quarter results want make any difference, unless the whole market goes up

Investor99

Investor99

Manager - Equity Analytics

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I think this topic has been discussed before. The hotel sector will not be attractive in the short to medium term mainly because of the following reasons

Most of the hotel sector shares are overvalued

As Europe is in a debit crisis there will be lesser tourist arrivals from the Euro zone only quality tourist who can spend money will make a difference to the hotel sector

High competition from other cheaper exotic destinations

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the Hotel sector - will it perform in the coming quarter???

1 the Hotel sector - will it perform in the coming quarter??? Thu Jul 14, 2011 11:14 pm

SNIPO (+)

2 Re: the Hotel sector - will it perform in the coming quarter??? Fri Jul 15, 2011 2:14 am

Tiger

3 Re: the Hotel sector - will it perform in the coming quarter??? Fri Jul 15, 2011 7:46 am

Leo_pold

4 Re: the Hotel sector - will it perform in the coming quarter??? Fri Jul 15, 2011 7:49 am

glad

5 Re: the Hotel sector - will it perform in the coming quarter??? Fri Jul 15, 2011 8:13 am

Light of Hope

6 Re: the Hotel sector - will it perform in the coming quarter??? Fri Jul 15, 2011 9:07 am

Investor99

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