Inland American / XHR Xenia Hotels and resorts

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Robsoupman
Posts: 1
Joined: Sun Mar 01, 2015 3:27 pm

Inland American / XHR Xenia Hotels and resorts

Post by Robsoupman » Sun Mar 01, 2015 3:48 pm

I'm looking for advise on how to exit this REIT. They recently issued sharholders 8 shares of XHR for each share of Inland American shares held. There is now a tender offer for the XHR shares at between $19- $21 . I missed an opurtunity to sell all my Inland American shares in a tender offer at $6.50 a share back in March of 2014 and regret not taking my loss at that time just to get out and move on. Selling XHR at $21 would recover only about $15k of the initial $40k investment in Inland American. Had I got out in March 2014 I could have recovered $37k and moved on. Now I still have 5700 shares of Inland that I hope to be able to liquidate at some point in the future .I'm stuck for now and am not sure to take whatever I can get get whenever I can get it or ride this dead horse out? Any advise would be appreciated .

Beat The Street
Posts: 325
Joined: Wed Sep 26, 2012 3:09 pm

Re: Inland American / XHR Xenia Hotels and resorts

Post by Beat The Street » Sun Mar 01, 2015 4:04 pm

Sell the XHR and wait out the Inland as you are forced to do so. I saw after the spin off that Inlands value per share is estimated to be $4.
“Never ask anyone for their opinion, forecast, or recommendation. Just ask them what they have—or don’t have—in their portfolio.” -Taleb

jwkde
Posts: 85
Joined: Thu Feb 04, 2010 2:42 pm

Re: Inland American / XHR Xenia Hotels and resorts

Post by jwkde » Sun Mar 01, 2015 4:29 pm

I too did not take the $6.50 tender for all of Inland.

Friday's price for XHR is slightly above the highest tender offer on the Dutch Auction. I think it might be worth it to sell on the open market.

You will pick up a little ST capital loss to help the sting of the Dividend payout.

Yes Inland just reset their price @ $4.00 per share and there were several board resignations.

I am going to stick it out on Inland just to see what happens

dailybagel
Posts: 494
Joined: Tue Feb 15, 2011 8:35 pm

Re: Inland American / XHR Xenia Hotels and resorts

Post by dailybagel » Mon Mar 02, 2015 7:55 am

Out of curiosity, how did you each get in to the Inland American REIT?

I know your question is about getting out of this investment, but I wonder if there is advice you would have for other bogleheads about the process you took?

tpn
Posts: 19
Joined: Wed Jul 17, 2013 11:39 am

Re: Inland American / XHR Xenia Hotels and resorts

Post by tpn » Mon Mar 02, 2015 9:23 am

We are in the same situation; got in through an advisor, whom we have since thanked for the valuable lessons and bid adieu.
My question is, how can this distribution of Xenia shares be both taxable and also result in a reduced cost basis of the Inland shares? Seems to me it should be one or the other but not both.

jwkde
Posts: 85
Joined: Thu Feb 04, 2010 2:42 pm

Re: Inland American / XHR Xenia Hotels and resorts

Post by jwkde » Mon Mar 02, 2015 3:43 pm

#1 Got in to Inland REIT also through an advisor no longer use. Over the years some private REITS have been very good investments.

#2 I do not think this distribution will be a cost basis reduction in Inland to the shareholders left behind. From my understanding
The value of the XHR distribution is considered a dividend payout. We acquired XHR at the price that was on the statement and that is used for the cost basis of XHR when it is sold.

Because Inland distribution a large portion of its assets then its remaining value is now decreased.

Post Reply