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Florida

If it's good enough for Oaktree - it's good enough for me!Ashford, like most hotel operators, took a serious hit due to Covid. They are hanging on and I believe they'll survive thanks to their strong portfolio of properties. I caught this one back in late December and early January and happened to notice that Oaktree Capital was supplying AHT liquidity. After further research, I am long. I think this one is going to skyrocket as normal patterns of business and living resume--and they will! In the short term, and as I write this, the weak hands are selling out of this because earnings will be reported 2/24/21 after hours. These Covid and wintertime affected earnings will likely suck, I expect that. The real test is gong to come the spring/summer/fall of 2021. Ashford owns many high-end hotels, with a good amount of those in TX and FL. I keep things very simple: We're witnessing a large population flow to these states, I believe that will inevitably continue. You wanna move to TX-- you're gonna need to go down and scope things out--so you get a hotel for a few days. Business is booming in these locations and there is a tourism draw as well. Sure, some will stay in some musty ma and pa rental, but I guarantee that local businesses will have contract rates with the big guys. When a prospective software engineer flies into Austin, Orlando, Jacksonville, for an interview, they will be staying at the Hilton, Embassy Suites, etc. on the house. There is some CA exposure I'm concerned with. The one positive: AHT is positioned well to serve tourists as they are located in great places. Overall I'm very excited about this one. I have a decent but reasonable position going if things don't work out.
ALong
by scottybfx
6