SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Dividend investing for retirement
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Steve Felix who wrote (24662)5/9/2016 7:06:41 PM
From: E_K_S  Read Replies (1) of 34328
 
RE: Sotherly Hotels Inc. (SOHO) - a valuation comparable

Morgans Hotel Group to be taken private by SBE for $2.25/share

MHGC own's, partially own and/or manage a portfolio of eleven hotel properties in London, Los Angeles, New York, Miami, San Francisco, comprising over 3,200 rooms. In addition, we also have a licensed hotel in Las Vegas, comprising 1,117 rooms and a franchised hotel in Istanbul, comprising 71 rooms.

Not counting the franchised hotel in Istanbul they own 4377 rooms and were taken private for an enterprise value of $794mln or $184K/room.

I am not sure how you would count the licensed rooms in Las Vegas but the cost per room is pretty high. They are similar size as SOHO w/ 11 properties but really not centrally located but spread out.

-----------------------------------------------------------------

I like SOHO as they are more centrally located in one region (making management/operating easier). I was checking what the avg cost per room was for the Marriot / Starwood deal was and got numbers that ranged from $164K/room to as high as $254K/room.

Therefore, SOHO's average cost of $154K/room is looking attractive especially if management can add more value in their remodels/upgrades work resulting in higher average room rents and occupancy rates. I like where the bar is set pretty low when looking at an undervalued turnaround.

I may have to up my speculative buy even-though the stock is +9% from my initial buy in April.

EKS
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News