Added to YB: 2019-08-07
Pitch date: 2019-08-07
STAY [bullish]
Extended Stay America, Inc.
+55.17%
current return
Author Info
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Company Info
Extended Stay America, Inc., together with its subsidiaries, owns, operates, develops, and manages hotels in the United States.
Market Cap
$3.6B
Pitch Price
$13.19
Price Target
N/A
Dividend
N/A
EV/EBITDA
N/A
P/E
36.18
EV/Sales
N/A
Sector
Hotels, Restaurants and Leisure
Category
value
Extended Stay America: Rejects Split-Up, Underlying Value Here
STAY: Rejects split, value remains. Largest public extended stay hotel owner/operator. Paired REIT/mgmt structure. Strategic review concluded, stock -5-10%. Value mostly in RE. 12% FCF yield, 10x UFCF vs 17x hotel sales. Hypothetical split: $17+/share vs $14.50 now, $20+ if mgmt co sold. More upside: brand loyalty program, buybacks + 6% div. Risks: labor costs, recession could hit EBITDA $50-100M.
Read full article (4 min)