A big company called Delonix, which has many fancy hotels, is joining with an even bigger company called Marriott. This will help both of them have more customers and make more money. Some people think that Delonix might want to become a public company again, which means anyone can buy its shares, after the pandemic ends. They did this before but it didn't go well because many hotels were closed due to the virus. Now they hope that by working with Marriott, more people will know about them and they can sell their shares for a higher price. Read from source...
- The article title is misleading as it implies that the Marriott tie-up is a direct hint for Delonix's re-listing attempt post-pandemic. However, the article does not provide any concrete evidence or official statement from either company to support this claim.
- The article uses vague and ambiguous terms such as "equally intriguing" and "potential return" without providing any clear reasoning or analysis behind them. These words suggest that the author is speculating rather than reporting facts.
- The article compares Delonix's market value to that of Huazhu Group, a competitor that operates higher-end hotels, but fails to mention that they operate in different segments and markets. This comparison is not relevant or meaningful for understanding Delonix's position and prospects.
- The article relies heavily on external sources such as Hotels Magazine ranking and Benzinga.com report without verifying their accuracy or credibility. These sources may have their own agendas or biases that affect the quality of information presented in the article.
Based on the article, Delonix is a leading Chinese hotel operator with a high-end portfolio. The company has partnered with Marriott to gain access to its global resources and reservation system, as well as its loyalty program. This partnership could help Delonix raise its profile and potentially re-list after the pandemic, as it did in 2019 but faced a poor market environment. The article suggests that Delonix could be worth about $2 billion if it goes public again, which is triple its market value at the time of privatization.
One possible investment recommendation for this opportunity is to buy shares of Delonix or its parent company, Hongshan, as they may benefit from the Marriott partnership and the potential re-listing in the next couple of years. However, there are also risks involved, such as the uncertainty over China's economy, the competition from other hotel operators like Huazhu Group, and the possibility that Delonix may not be able to successfully re-list or capitalize on the Marriott partnership. Therefore, investors should conduct further research and analysis before making any decisions.