Mohit Hajarnis
Long/short equity, special situations, REITs

Float Like A Butterfly, Sting Like A BEE: Why Strategic Hotels & Resorts Is A Real Winner

Strategic Hotels & Resorts (NYSE:BEE) is a Real Estate Investment Trust (REIT) that focuses on luxury properties in profitable urban and resort markets. As of June 30, the company owned or leased 16 hotels in New York, Chicago, Washington DC, and various resort markets. These hotels are operated by world-class operators like Ritz-Carlton, the Intercontinental Group, and Fairmont Hotels.

Despite its strengths, Strategic Hotels & Resorts trades at a discount to its Fair Value Estimate of $14.75 because the market has not priced in the recent changes to BEE's capital structure, the market overestimates its riskiness, and without a proven earnings track record, the company trades closer to NAV (guaranteed assets) than P/E (future earnings). An in-depth and...

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