Editor's Note: If you are an institutional investor and would like access to this call email firstname.lastname@example.org.
We’re set to publish and present our latest work in the Hotel C-Corp space, with the majority of the presentation focusing on our new Best Idea Short Choice Hotels International (CHH) at 2:00pm ET today.
We’ll cover a variety of topics at the industry and company level, and importantly, provide a roadmap of near term catalysts and longer term themes to consider for CHH and the broader C-Corp industry.
Last week we introduced CHH as a new Best Idea Short, a call that builds on our already bearish view of domestic hotel development and more.
Since early ’21, CHH has benefited greatly from the combination of industry leading same-store RevPAR growth, effective cost controls, and positive mix shift impacts on fees from its net unit growth (NUG) strategy. However, we anticipate a reversal of fortune for CHH. Potentially disappointing RevPAR – for the industry and especially CHH – and the implications of a much weaker NUG backdrop moving forward, could ultimately lead to a negative revision cycle and a valuation reset.
Regardless of your stance on the Hotel C-Corp space or CHH, we hope to provide a fresh perspective that can add value to your decision making.
Call is TODAY at 2PM ET and Hedgeye GLL subscribers can access the slides and webcast via this link: CLICK HERE