Cap Rates Continue Their Trend Downward in Q2 Summary

As the next installment to my March 2009 article published in Hotel News Now, I thought it best to literally pick up where I left off on that date. In the last paragraph of that article I concluded that because Strategic Hotel Capital (BEE on NYSE) has a cap rate below 10%, over 200 basis points below the next lowest, its share price may still have potential for further declines. At that time, cap rates ranged from 9.6% (for BEE) to 15.