John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Investors Are Ignoring The Long-Term Bullish Outlook For Recent Spin Off Ashford Hospitality Prime

Key takeaways

    Ashford Hospitality Prime (NYSE: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 ...
Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details