When I look at stocks like FVE, SKH, MDTH, SUNH with an unbiased eye, they compare very favorable to hotel stocks. Metrics would be RevPar, occupancy, EBITDA/EV and by my accounting all those metrics look favorable in relative to historical metrics, or hotel stocks.. if you would indeed regard a stock like SUNH as a hotel stock (not too much of a stretch regarding the business model) than the metrics would look superior. That is where the value angle comes in. Even though that some of those metrics turned slightly negative (gross margins, Revenue/unit) it is nowhere close to the punishment the hotels have been receiving.
Texasdude is mixing up business momentum with value, although his approach seems to be inconsistent (IMO) since he is vouching for HRC which is Capex dependent partly from those companies that I am discussing here.
FWIW, I bought a little MDTH (@9.44$) today, trading below tangible book and profitable with moderate debt. |
