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Strategies & Market Trends : BUY MMH!!! -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus_Long who wrote (3)	8/30/1999 3:08:00 PM
From: professor	Respond to of 4

Here's some REAL facts on Meristar Hotels & Resorts!!! I've been a long term holder of MMH for awhile and it is one of my favorite investments. 1. Robert Bass owns 18% of the company and he is one of the smartest investors out there. 2. This company is runned by experienced hotel operators, Paul Whetsell and Steve Jorns. This is not a company owned by financiers like Starwood which is runned by Barry Sternlicht. 3. This company is the operating company of Meristar Hospitality (MHX), a REIT, so it doesn't have the real estate risk. 4. There is significant leverage in earnings growth as the company can take on additional management hotel contracts outside of the REIT. 5. The valuation is cheap with analysts looking for 35 cents in eps next year so the stock is trading at less than 10 p/e multiple. On a cash eps it is even higher. 6. The company generates more than $1.2 billion in revenues giving it plenty of ability to improve margins by gaining economies of scale through purchase agreements and labor consolidation. 7. Mgmt. owns 7-8% of the stock. 8. The properties that MMH manages are high quality brandnames such as Marriott, Hilton, Sheraton , Doubletree,etc. They also are developling resorts with a golf course emphasis. 9. The stock has a small float so when it gets discovered it will move up quickly. 10. There is current proposed leglislation where MHX may take out MMH if it is passed. I have a few more insights into the company if the board is interested.