RLH

Red Lion Hotels Corporation

Consumer, Finance/Real Estate


Presented:01/22/2020
Price:$3.16
Cap:$0.08B
Current Price:$3.49
Cap:$0.09B

Presented

Date01/22/2020
Price$3.16
Market Cap$0.08B
Ent Value$0.26B
P/E RatioN/A
Book Value$6.21
Div Yield0%
Shares O/S25.15M
Ave Daily Vol298,410
Short Int6.21%

Current

Price$3.49
Market Cap$0.09B
Red Lion Hotels Corp. is a hospitality and leisure company, which engages in franchising, management, and ownership of hotel properties. It operates through the Company Operated Hotel and Franchised Hotels segments. The Company Operated Hotel segment comprises guest room rentals; and food and beverage offerings at owned and leased hotels. The Franchised Hotels segment involves in licensing its brands to franchisees and includes reservation system, guest loyalty program, national and regional sales, revenue management tools, quality inspections, advertising, and brand standards. The company was founded in 1937 and is headquartered in Denver, CO.

Publicly traded companies mentioned herein: CorePoint Lodging Inc (CPLG), Marriott International Inc (MAR), Hilton Worldwide Holdings Inc (HLT), Red Lion Hotels Corp (RLH), Wyndham Hotels & Resorts Inc (WH)

Highlights

The presenter is long shares of Red Lion Hotels Corp (RLH), which has an interim CEO and Chairman who he presumes are tasked with maximizing corporate value. While management has stated it is looking for a leader to maximize business prospects, the presenter thinks a strategic review and a sale in the next ~18 months are more likely. Red Lion has a market cap of $80MM and the presenter believes the thesis is relatively simple, as Red Lion is nearing the completion of divesting its remaining hotel assets. The stock currently trades ~$3 per share and the presenter thinks the stock has 100% upside if Red Lion is acquired for 5.5x earnings. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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