Grommit,
I looked at PK (and wrote about it extensively for a firm) in June 2018, but had passed because a) I didn't really see an attractive upside (I had it valued at $30 and change) despite it trading at an undervaluation to its peers, and b) it was late in the cycle, with supply outpacing demand in most of its markets and RevPAR growth had either peaked, or declined (far from a trough). Agree that it is heavily concentrated in Hawaii, California, & Florida.
That being said, it's not a bad business - it has higher FFO margins than its peers, and it owns quite a few "trophy" properties, plus it's conservative on debt.
I'm curious, could you elaborate on your thesis as to why it seems like a good idea? |
