Audio – Show me the money! Now, what do we do with it?
It’s a good problem to have — exactly what should a company do with its cash on hand.
For Sunstone Hotel Investors Chief Executive Steven Goldman, it’sreally not much of a problem at all and he addressed his thoughts on exactly what he and his board plans to do in the coming months with its cash.
Goldman, speaking at the Reuters Travel and Leisure Summit on Wednesday in Los Angeles, said the company was looking at four options for what to do with its cash:
1. Sit on it.
2. Buy back stock.
3. Pay down debt.
4. Fix up their existing properties.
Goldman said that Sunstone, a real estate investment trust (REIT) with 46 properties in its portfolio, would like to be doing some of each category, but would likely be a net seller of some of its lowest performing properties in the coming year, giving it even more cash for other goals.
Goldman was one of the featured speakers at this year’s summit, which runs through today. The next summit on the docket is next week’s Reuters Housing Summit held in New York and London.