Speaking at NYU's 27th Annual International Hospitality Industry Investment Conference yesterday, Lou Plasencia punctuated the sector's strong performance with figures putting its average annual growth at 22.9% in 2004 and average annual REIT return at 18% from 2000 to 2004. And with numbers like that, hotel REIT executives said, given the opportunity, they would do it all again. "Our original reason for going public was to have access to the public markets," explained Tom Corcoran, president and CEO of FelCor Lodging Trust. "It is a very efficient way to own hotel real estate." He added that he would not consider "de-REITing."

But despite the upside to hotel REITs, Doug Kessler, COO and head of acquisitions at Ashford Hospitality Trust Inc., said he is not aware of any companies with plans to go public, adding that DiamondRock Hospitality--which began operations in July 2004 and become a public reporting company last month--may be the last for some time.

The decision to go public or stay private depends on the company's overall strategy, and there is no right or wrong answer, according to Bruce Wiles, COO of MeriStar Hospitality Corp. "There are trade-offs on both sides," he explained. By going public, companies have access to capital and acquisition currency, he said; however, the downside is the numbers live market to market, giving companies less control. But he added, "A REIT is a good structure in today's cycle."