Aegis Value Fund / Aegis Financial Corporation on Park Hotels & Resorts Inc.
Thesis
Aegis initiated Park Hotels & Resorts as part of its hotel-REIT value basket. The fund believes the shares were trading at a steep discount to replacement cost while the 2026 demand calendar was unusually favorable. Major U.S. events such as the FIFA World Cup and America's 250th anniversary were expected to support lodging demand. At the same time, subdued hotel supply growth created a constructive industry backdrop, improving the potential risk-reward from buying discounted hotel real estate.
“These companies had been trading at steep discounts to replacement cost ahead of a favorable 2026 demand calendar”