CorePoint Lodging is Down 50% – Is it a Buy?
Background (courtesy of Yet Another Value Blog):
La Quinta used to consist of two businesses: the La Quinta brand / franchise and the ownership of 317 La Quinta hotels. In early 2017 the company announced a plan to pursue a taxable spin-off that would split the owned real estate into a REIT and leave behind the high margin franchise / brand management business. In early 2018, the plan changed slightly: the company announced that they were selling the La Quinta franchise / management business to Wyndham, and concurrent with the sale they would spin off the REIT as a company known as CorePoint Lodging. The sale of La Quinta closed on May 31, 2018 and the CorePoint spin-off began trading the next day.
What Was Supposed to H