RE: Overvalued?1 Feb 2016 23:00
There are no updates now due until June and management are stating everything is as expected. Between now and then we might get further hotel property purchases or franchise deals. All adding to the value overall.
The margins are high, 67% plus, this is very comparable and better than other businesses but the current results are immature in nature and are distorted somewhat from just beginning. It's the potential of what two years from now will bring, these are potential sector best results but not as we stand.
Question is will the franchises continue? Will the brand take more hotels, where is the money coming from for more to be built? The business model is sustainable, hotels profitable in their first month.