- Ashford Hospitality Prime (AHP) trades at an attractive multiple as the high leverage ratio draws investor attention away from the long-term bullish outlook.
- However, the high debt load is manageable given the lack of near-term maturity, sufficient liquidity and significant EBITDA growth.
- Risk is reduced by the portfolio of luxury hotels in attractive markets that continue to appreciate as a result of the rebounding economy. Moreover, the balance sheet that provides this asset floor is typically the last place (if at all) for these increases to be reflected. The fact that activists are starting to get involved in the industry only strengthens this thesis.
- The overall lack of familiarity with the AHP story due to the
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