Jun. 30 at 3:02 PM
$GHG.P It looks like we may have to keep waiting for the merger before this really gets moving. My guess is that it happens in under six months, especially with the
$20 million payment the parent company, GTI, needs to make by year-end.
My main concern is that we see some cheap
$2.00 buyout attempt instead of the merger. GHG operating cash flow equal to roughly 30% of its market cap, remains nicely profitable, and has
$348 million in cash and short-term investments and trading at less than 50% of tangible assets. It is just not exciting right now because the hotel business in China remains ugly. China' occupancy and RevPAR has been under pressure for several years in a row, and that is easy to see in GHG’s numbers. But I continue to believe China will turn in a big way, and GHG’s scale is huge with 4,605 hotels and 328,646 rooms. This will count one day. When China properly recovers, GHG will print money. For now I wait and add.
