Jun. 30 at 3:02 PM
$GHG 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.
