18 Jun ADD: DUNDEE CORPORATION (TSX:DC.A)
June 18, 2018
ADD: DUNDEE CORPORATION (TSX:DC.A)
I visited Parq Vancouver late last week. I was always pretty curious how one could spend $900 million building 600 hundred rooms. Seems like a lot of dough, even for downtown Vancouver prices. After reading, with some alarm, that Dundee’s partner at Parq, Paragon Holdings, did not chip in to fund the last quarterly deficit at Parq, I finally decided to get on a plane with the little lady for a little weekend getaway. Given DC.A’s current market value, the investment in Parq is quite material.
It’s a lovely hotel. It is obviously managed by people who know how to run a hotel and casino. The staff were amazing – never hesitating to take immediate action on even the slightest request. The restaurants were lovely, in particular Salt&Honey. The “forest” is nice and my wife and I remarked that had that patio been in downtown Toronto, it would be filled nightly (Vancouver-ites don’t seem to head out in the numbers we see in Toronto and Montreal…nightlife is not Vancouver’s strong point). The casino was doing steady business from the afternoon to the wee-hours; not packed, but, nice and steady. I am no expert, however, I don’t see any issues with the casino winning $150K per day. Is that enough? Not sure.
It didn’t look packed…I think occupancy was around 60%, but I can’t be sure. Conventions start Sunday and we were there Thursday to Saturday. It seems like a quality asset and it’s not Tender Choice (lol). There’s some value there…how much, again, not sure. We will know more this year as we see the EBITDA numbers. I’ll buy more DC.A today in any case.