Why CorePoint Lodging Tumbled 12% in Early Trading Today
Shares of hotel focused real estate investment trust (REIT) CorePoint Lodging (NYSE: CPLG) fell out of the gate today, losing roughly 12% of their value in the first hour of trading. The company's before-the-market earnings release was the likely cause of investors' dour mood. But you have to look past the year-over-year figures to understand what's going on.
Using the typical year look back, the first quarter was a great one for CorePoint. Its revenue rose by nearly a third compared to the same quarter in 2020. Occupancy increased 11.7 percentage points. Revenue per available room (RevPAR in industry lingo) was up 71%. And adjusted funds from operations (FFO) per share came in at $0.47, up from zero a year ago. The only problem is that a year ago the world was still struggling through the coronavirus pandemic, so an improvement from that period was almost a guarantee. And that's where the problems begin.
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Source Fool.com
