Thursday, October 26, 2017


Hospitality Investors Trust, with the always apt acronym HIT, continues to punch investors.  In response to a tender offer from MacKenzie Realty Capital of $5.33 per share, HIT responded with its own tender offer of $6.50 per share.  What a deal!

HIT throws around a number of percentages in its tender offer announcement.  MacKenzie's tender offer is 58.1% below HIT's most recent NAV of $13.20 per share.  HIT's counter tender offer is only 50.8% below NAV, and it is a 17.5% premium to MacKenzie's offer.  Premium, seriously?  Do not be fooled.  MacKenzie's offer for HIT shares, like all its tender offers, is bottom fishing.  HIT's tender offer seems more like a chance to purchase shares cheap from its own shareholders rather than protect these investors from opportunistic buyers.

There is another percentage HIT does not want you to see.  HIT's tender offer of $6.50 per share is a 74% discount to the $25.00 per share paid by investors.

1 comment:

Anonymous said...

What you say is true, but I am generally in favor of these self-tenders because they do tend to discourage future attempts by the bottom fishers like MacKenzie.