Despite the economic headwinds that have devastated the lodging industry, Ashford Hospitality Trust (AHT) turned in strong cash flow from its operations in the second quarter. It's a testament to management that amidst a 20% decline in RevPAR, on par with the industry, they were able to keep pace by slashing expenses 17%. That is a major reason why Ashford is so far ahead of the game. It's all about cash flow in this environment.

We want to see three other things from hotel companies in these times. We want to make sure interest payments are, in the aggregate, being made. We want that preferred dividend payment being made. We want capex kept to a minimum. Ashford had already been smart enough to suspend their common dividend last December, saving them upwards of $80 million annually -- and every such dollar is precious.