I'm no guru but funny enough I just had a brief email discussion with someone about that play last week. And btw - I think T. Lee is a large part of the convertible preferred holders that are eating the common holders alive in WBR. Here's what I said:
"Just a few comments about WBR after a brief review.
* It seems like a value at first glance, but after looking at the equity structure it seems all the beef goes to preferred holders, not common owners. * Free cash flow is minimal (certainly not enough to make good progress on the heavy debt load). * GAAP loss per share attributable to common is heavy and it doesn't look like profits are in their future. While management focuses on EBITDA, I don't think that measure is necessarily appropriate considering the heavy debt load. I would be happy judging the company based on earnings before depreciation and amortization as property values don't depreciate nearly as much as GAAP requires, however this would still leave only approximately a break-even performance at best even in an improved business environment.
While this may be a momentum play (recent news is great), I would not necessarily characterize it as a long term value. Are you in it long-term? If so, thoughts on the above?"
MeriStar (MHX) might warrant another look if you think hotel industry is/will rebound in the next 12-18 month. Half the size of Wyndham (107 properties), over $1 in cash, less debt,book value $18. I don't own it, but have been periodically keeping an eye on it.