HG Vora Capital Management Initiates Stake In Town Sports International Holdings, Inc. (CLUB)

Parag Vora, the manager of HG Vora Capital Management, is optimistic about the prospects of Town Sports International Holdings, Inc. (NASDAQ:CLUB) and has initiated a new position. In a recent filing with the Securities and Exchange Commission, HG Vora Capital has revealed the acquisition of 1.3 million shares, which account for approximately 5.4% of the total number of shares outstanding.

Jim Simons is also keen on Town Sports International Holdings, Inc. (NASDAQ:CLUB), having increased his fund’s stake by 14% during the Q4 of 2013. In its latest 13F filing, Renaissance Technologies reported ownership of 856,000 shares valued at $12.6 million. Thomas Steyer is also keeping tabs with his fund, Farallon Capital, holding 4.06 million shares reportedly worth $59.9 million.

An operator of fitness clubs in the United States, Town Sports International Holdings, Inc. (NASDAQ:CLUB) has a market cap of $205 million and pays an annual dividend of $0.32 per share, which represents a yield of 3.8%. The stock is traded at a trailing Price to Earnings (P/E) ratio of 17.xx, significantly lower than the industry average of 27.80. For the three months ending December 31, 2013, the company has posted revenues of $114 million and earnings per share of $0.00. 2014 first quarter is expected to bring $117 million in revenues and earnings of $0.01 per share.

Mr. Vora and his fund have recently upped their interest in Ashford Hospitality Trust, Inc. (NYSE:AHT) through the addition of 3.65 million shares, taking the fund’s total holding to some 5.0 million shares or 6.2% of the company’s common stock. Vora also has high hopes for Pinnacle Entertainment, Inc (NYSE:PNK) with his fund holding 3.4 million shares worth approximately $88.3 million, according to the fund’s latest 13F filing. He is also betting big on Northstar Realty Finance Corp. (NYSE:NRF) and has bought 4.4 million shares during the fourth quarter of 2013.

Disclosure: none.

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