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Executive Summary:

In this post, I discuss a hospitality company which remains under the radar despite posting record results in recent years. The stock screens cheap both in relative and absolute terms, generates substantial FCF, and is buying back stock hand over fist.

The opportunity exists as this is a small cap, former SPAC with an unnatural shareholder base without many real money institutional investors. The company also lacks any pure play comps and concerns regarding how the company may perform in a recession have exacerbated the recent drawdown in its stock price.

Overall, I think this is a solid business with continued runway for organic growth, run by capable and experienced operators that are focused on maintaining high ROIs and rewarding shareholders through share buybacks. I think the stock at current levels presents an attractive risk/reward over the medium term that can be driven higher by a combination of earnings growth, modest multiple expansion, and share count reduction.

Disclosure: The information provided is for informational purposes only and should not be considered as investment advice. Any investment decisions made based on the information provided are at your own risk. It is essential to conduct your own research and consult a qualified financial advisor before making any investment decisions. Investing involves risks, and past performance is not indicative of future results. By using this information, you acknowledge that you are responsible for your own decisions and release me from any liability. Seek professional advice tailored to your financial situation and objectives.