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Hersha Hospitality Trust Message Board

  • h5n1eric h5n1eric Jan 18, 2011 11:38 AM Flag

    ZACK's SPPR target @ $2 >

    similar 'play' that HT was 2 years service hotels...selling under book, with sector at 2x book.

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    • EV / EBITDA

      HT = 22 / SPPR = 10
      (2-to-1...lower is better)


      HT 1.69X / SPPR 0.63X
      (paying 3x more, for HT tangibles vs. SPPR)

      Foreward p/e

      HT = 15 / SPPR = 4.5
      (paying 3x for HT foreward earnings vs.SPPR)

      On a valuation basis, SPPR appears a very good value in comparison to HT...i.e. has more price potential

      This is not to 'bash' HT...I used to own it...Bought it in the $1+ area...SPPR is a very similar story...HT was the first to 'turn the corner' on profits / dividend resumption, and the stock responded !...I think SPPR will do that sometime in 2011...and we should see the same story play out in the price of SPPR, as it did for HT over the last 2 years)...good luck, spread the bets...diversify.'s better to be EARLY...That's when you make the BEST GAINS

    • I used to own HT...bought it "way back when', between $1.25-1.40....made good profits on it.

      Not here to bash HT (decent stock)...just that in looking at the valuation numbers...price/sales...PEG...EV/EBITDA...and especially the "price-to-book", the SPPR appears to have the better "potential" over the next couple years.

      On asset pricing alone (tangibles), the SPPR sells around 0.6x book value...The HT at 1.7x book. I look at SPPR in the way I approached HT awhile back...undervalued.

      Given the raising of the earning's estimates recently (raised quite a bit), well, if they can come close to those new estimates...and go "green", I think the SPPR can move above $2, sometime in 2011 (guess: $2.40 end of year)...and if/when they resume the dividend at some point, the stock should get a further pop...I'd guess $4 by the end of 2012.

      It looks just like HT did....same story...same "limited service hotel" concept

23.61Nov 30 4:03 PMEST