Jun. 22 at 2:38 PM
$AHT I really hope you are right. Unfortuntely it is not true.
Altought there is no outstanding debts besides asset backed mortagate, there are a lot of preferred shares outstanding. In the case of take over, I assume you need to pay these preferred shares at face value (
$25/share). Of course you can accumulate over time at market price (about 50% discount) if you want. Probably it will cost several hundred millions to buy out all outstanding preferred shares. Please share if someone has more accurate data?
It doesn't mean common are not under valued, espeically from hotel replacement perspective. I don't think anyone will build any new hotels for a while.
Once we see the operation turn around, I am not surprised to see the common SP 10 times from here. I just don't know whether or when this will happen. It is the worst sceranio for hotel business from macroeconomic perspectives right now, slowing economy + high interest. I do think it won't get worse from here.
