Jun. 14 at 10:27 PM
$PK has a big problem
hotels are old and decrepid but they dont have any money to renovate
why?
PK is the old
$HLT hilton -- what we think of as hilton was spun off from PK. That means PK has an ancient ancient tax basis in these old properties. They have been depreciated down over 30-40 years to nothin
that is why they pay out such a big divvy - no depreciation left to reduce payout
But it also means they can't sell anything and recycle the money into renovation - the tax basis is so low the price is all a gain
This is like
$PEB and
$AHT - a one way trip to crap performance
