|It's the banks that are winning here.
Debt rising quickly.
Interest costs up from 2.9m to 5.7m.|
|Proactive Investors is here: http://tinyurl.com/z9ma2vf|
|Video interview with Alain Debare
Action Hotels PLC (LON:AHCG) is well on track to hit its targets after the completion of its tenth and largest hotel to date pushed total room count to just under 2,000. The Brisbane property opened in March and broke even after the first month.
In its full year results for the period ending December 2015, the group saw a 30% increase in rooms, 92% since listing and Alain Debare, chief executive, tells Proactive he is “really pleased with the results and the growth”
He says the company is “clearly benefiting from the strong demand for economy and mid-market hotels” in Australia, while in the Middle East there is a “massive demand” for Action’s hotels, as it is the “only one addressing the gap in economy and mid-market hotels in the region”.|
|The thread on this company has gone quiet.
Looks to be delivering on strategy from last update. 1561 rooms currently, and 908 rooms scheduled in 2016 to be added. Significantly below NAV, est - 40%. Business model looks tangible and real with growth from 330 rooms in 2008 and revenues with large proportion based on a Freehold basis.
Significant shareholder family who have a controlling stake and commercial history over many decades. 2 Year lock in finished in Q4 2014, so they could now takeover, or grow as currently.
2015 Results due out in April. Am I missing something obvious as looks like a long term growth story?
|It was 70% in my header when thread began..
No chance of him being outvoted on anything.|
|according to http://www.directorsholdings.com/company/details/?epic=ahcg
the chariman own 65% of the company (44m£) ..
that is a lot|
|Video interview with CEO Alain Debare
The chief executive of Action Hotels (LON:AHCG), Alain Debare, says the company remains on track to open 16 hotels and 2,820 rooms by 2017.
“There’s a lot of focus on making sure we get these hotel deals complete on time and to budget,” said the CEO. “But we’re on track to meet that target.
Today the firm told investors that adjusted gross operating profit was up 11% at US$11mln in the six months to June 30.
Earnings before interest, tax and depreciation advanced 14% to US$8.7mln on total revenues of US$21.6mln.
Its three and four star chain, which is focused on the Middle East and Australia, said occupancy rates at mature operations were above 80%.|
Lengthy reference to Action Hotels including interview comments.|
|Odd: an RNS today to tell us that shareholders were told on the 11th of may that the AGM would be held on the 28 May.|
|Market Cap: £86m; Current Price: 58.5p
•Finals slightly below but dividend in line
•Revenue was +26% to $38m on the back of a 9% increase in the average daily rate (ADR) to $113, a 5% increase in revenue per available room (RevPAR) to $84 and average occupancy increased by 1% to 78% on a l-f-l basis YoY. Although a commendable performance where Adjusted EBITDA increased by 34% YoY to $11.3m this was c.6.5% below consensus for FY14. Final dividend increased by 126% to 1.45p taking the total to 2.17p and in line with expectations and points to a dividend yield of c.3.7% at the current price.
•1Q15 has started well where ADR was +3% YoY to $111 though marginally below the FY14 ADR of $113 we ascribe this to seasonality and expect ADR to increase throughout the year. Revenue was +22% compared to the same period in the prior year. Consensus is looking for c.57% YoY revenue growth which implies the business has a lot to do in the remainder of the year in order to meet forecasts for FY15.
•The group also appointed a new CFO, Krish Sundaresan, who comes with a wealth of experience in senior finance positions at international companies in the Middle East, Singapore, Japan, Australia and India. These are also key areas of expansion for the group.
NORTHLAND CAPITAL PARTNERS VIEW: The hotel portfolio continues to expand in high growth regions though the share price is not particularly undemanding at c. 18x FY14 EV/EBITDA in our view. Finals are slightly below expectations though the business still produced a strong performance and finally an improving dividend at current price levels implies a yield closer to 4% which should attract attention.|
|Good point MT. The share is certainly struggling to gain traction. I am not a fan of the scale myself. Looking at the trades I wouldn't be surprised to see it squeezed down to 53/56. However there may be a turn on it from that point as we may get some buying into results.|
|The main negative concern for me is the relationship between the listed company and the unlisted holding company. The relationship may be perfectly OK - or may be one in which the holding company creams off money when selling property to the listed company - in which case the listed company doesn't flourish.|
|be carful hear you might end up like ope|
|Mid-range rise reshaping GCC hospitality industry
JEDDAH – Leading experts from the hospitality sector say the rise of the mid-range is reshaping the industry in the region.
“There has been a growing diversification of the hotel industry, largely due to growing demand from price conscious international tourists and business travelers who want something other than the full five-star luxury experience at premium prices,” said Mark Shea, Faithful+Gould’s head of hospitality in the Middle East, who made the forecast ahead of the Arabian Hotel Investment Conference (AHIC) set to take place at the Madinat Jumeirah, Dubai on May 5-7, 2015.
Faithful+Gould, the world-leading leading integrated project and program management consultancy which specializes in the hospitality sector in the GCC, will lead a roundtable discussion on the hospitality sector at AHIC, gathering industry experts who will share their insights on the opportunities and challenges confronting the hospitality sector throughout the region.
Refurbishments and conversions will also be a key focus of AHIC, with Faithful+Gould Project Director Simon Enders leading a presentation on Getting Under the Skin of Refurbishments and Conversions, which will assess the feasibility of doing renovations on existing properties, including achieving maximum results with the least possible spend.
While the upmarket hotel segment has traditionally dominated the Middle East hotel landscape, the rise of the mid-range is reshaping the hospitality industry in the region.
According to Shea, medical and religious tourism are also fueling the growth of the mid-market range, which “could provide profitable long-term investment.”
Saudi Arabia currently offers huge opportunity for mid-range investment. The Kingdom’s 2030 strategy includes a significant focus on tourism, as well as reinforcing provision for existing high numbers of religious tourists.
In recent years, hotel infrastructure build up has seen intense activity in the Gulf, with two mega international events set to take place in the region.
In Dubai, the Department of Tourism and Commerce Marketing (DTCM) estimates that a total hotel room supply of 140,000 to 160,000 rooms will be required by 2020, an increase from the current supply of approximately 90,000 rooms, with a further 10,000-plus rooms being reported as needing refurbishment prior to World Expo 2020.
In Qatar, experts estimate about 45,000 hotel rooms are required to meet FIFA 2022 World Cup capacity requirements, with 21 hotels planned for construction by 2017.
“Each city has its own supply and demand characteristics. Dubai is a mature tourism destination, whereas Doha is emerging and has the challenge of maintaining momentum until the World Cup Qatar 2022. However both markets have room for mid-range provision,” Shea added.
Elsewhere in the region, Muscat, Manama and Kuwait City all have a growing need for mid-market provision. “Locations that maximize the asset’s potential mid-range hotels may be a more lucrative investment if provided as part of a mixed use development, rather than as stand-alone assets.
Considering versatile use of mid-market hotel accommodation can make better use of the building’s footprint. Mid-market hotels generally do not require lavish reception areas, and as a result, the hotel facility can be situated on the upper floors, releasing the ground floor to optimize retail footfall potential. In addition to new build opportunities, some areas have potential for converting old office buildings into mid-range hotels,” Shea further said.
Industry stakeholders looking to take advantage of opportunities in the hospitality segment could gain a lot of insights at the roundtable discussion to be led by Faithful+Gould, and will include experts such as Rawaf Bourisli, Director of Development, Action Hotels & General Manager, Board Member, Action Real Estate Company (KSCC); Paul Diab, Vice President-Operations, Golden Tulip MENA; and Hubert Viriot, CIO–IFA Hotels & Resorts and CEO –Yotel Ltd, UK. They will discuss build up models as well as funding approaches that could prove critical for contractors looking to enter the market for mid-range products. — SG
|Action to open first hotel in Riyadh
Action Hotels, a leading upscale property developer in the Middle East and Australia, plans to invest $8 million in the opening of its first hotel in Riyadh, Saudi Arabia.
The 130-room property, which will see the conversion of an existing office building into a three-star hotel, is ideally located on Olaya Street in the Olaya district, the fast-growing financial and hospitality heart of Riyadh City.
"There is great potential for Action Hotels in the kingdom, and in Riyadh in particular. Although the Riyadh hotel market is a mature market, there is considerable demand for mid-economy branded hotels from the corporate segment, yet this segment is currently under supplied," said Alain Debare, CEO, Action Hotels.
The conversion project is scheduled to open in the second quarter of 2016.
Moreover, Action Hotels has signed a 20-year operating lease agreement, and is finalising the terms of a long-term management agreement with a leading hotel brand.
The addition of this hotel in Riyadh brings the brands development pipeline to nine hotels with 1,514 rooms and a combined operating hotels and committed pipeline to a total of 3,002 rooms.
Sheikh Mubarak A M Al Sabah, founder and chairman of Action Hotels, said: “Saudi Arabia is an attractive market for us, being the largest country in the region and having recently undertaken a widespread, long-term strategy for non-oil economic diversification driving business travel. This new hotel is a great addition to Action Hotels’ portfolio and the prime location of the property is a very strong statement for our first hotel in Saudi Arabia’s capital city.”
|Results on May 11 apparently.|
|Should hopefully be good taking what they said in January. IMO
Action Hotels, a leading owner, developer and asset manager of branded three and four star hotels in the Middle East and Australia, is pleased to update the market on its operational trading performance for the year ended 31 December 2014.
The 6 operational hotels (including the Holiday Inn Muscat in its maiden year of operation) delivered strong performance with revenue per available room ("RevPAR") for the year increased by 3.7% to $84 (2013: $81).
Both Kuwaiti hotels delivered average occupancy for the period in excess of 80% and across the portfolio occupancy levels continue to be in line with management expectations.
Gross Operating Profit ("GOP") from operating hotels across the portfolio increased by over 20% which reflects the Company's focus on revenue management and increased efficiencies.
Total current operating room count is 1,488, a 32% increase on hotel stock, with a pipeline of a further 8 hotels taking total room count to 2,835 by 2017, a 319 room increase from the stated plan at the time of the IPO in December 2013.
The Company will announce its audited final results for the year ended 31 December 2014 in April 2015 when it will also declare its final dividend.
|Shares Magazine devotes a page to AHCG today and labels it a BUY.|
|22nd jan 2015 FinnCap buy tp 110p
|I'm out; only because of the low liquidity and the fact the share price won't move positively for love nor money. On my watch list, but will need to see some compelling share price progress. Good luck if you hold; got faith in the story overall.|
|Extremely well timed it seems as falls are accelerating and prices are dipping and still the selling continues. Not sure what has caused the flurry of check-outs but there doesn't seem to be a floor for the share price as it spirals down.|
|You might have time that exit well M.T. There are sells today at 59p so people are getting bored. I think you raise some pertinent concerns tbf.I have been to a presentation of this one and saw it as interesting especially in light of the divi. However I am not sold on the business model. If I opened four hotels in Kings x in London, they are sure to be profitable but would they warrant a listing? Those buying in will get a nice discount to the director buy at 69p so a further dip into the market by a director or more falls would make this more interesting.|
|I think the prospects for what it is doing are good. It will remain on my watchlist. It is the company structure that concerns me. And the share price behaviour (currently at its alltime low) doesn't justify a place in my portfolio at present.|
|I can't bring myself to dump these! I'm sitting on a 5% loss but it's trading way below its NAV pays a divi, in a growing market, people always need accommodation ect ect. HY interims were a good, I could be wrong and worse case the company delistes. I'm only 0.1% of my portfolio in this but happy with it.|
|Ditched the last of my AHCG this morning (for now at least). I still like the story, but am wary of companies that are a listed subsidiary of an unlisted holdings company that is in a position to cream off profits when acting as middleman on property deals. I don't know if it's fair to think that might be happening here, but I have better uses for my money elsewhere.|