Action Hotels Share Discussion Threads

[philanderer] 29/5/2014 13:40

Sanlam Securities reiterates buy and 96p target

[philanderer] 29/5/2014 13:38

Finncap reiterates buy and 110p target

[richtea1701] 29/5/2014 09:14

Thanks - very good points and agree with the risk reward notion. Think there might be better shares around but will keep an eye on this. Have a good day

[mach100] 29/5/2014 08:28

Both really, Rich. The scale seems small and they claimed there was huge growth in in the Middle East. The region is fairly unstable and I didn't get what their unique selling point was. I am sure it is a competitive industry and although they plan to scale up, they seem pretty small scale to me. He did talk about margins being good and I suppose they do pay a divi but I didn't get what made their margins so spectacular. From memory I think he said owning a hotel in Australia was a stroke of fortune and not part of strategy but that they might buy a second one there. This strikes me again as a little odd. Opening these new hotels will increase scale but also set-up costs and I am not sure what would drive up the price of Action to make this a good risk reward play. Aim thrives on news and if holders get bored they will sell up as they watch the share price drift down. I am happy to hear an investing case. Edited to add that I wouldn't buy a share in 7 hotels in Europe for example.

[m.t.glass] 29/5/2014 07:11

RNS Number : 2883I

Action Hotels PLC

29 May 2014



Kuwait hotels trading ahead of expectations and announcement of a new four star hotel in Kuwait

Action Hotels plc, a company focused on developing and managing branded economy and midscale hotels in the undersupplied markets of the Middle East and in Australia, is pleased to announce that it has signed a preliminary sale contract to purchase a plot of land in the prime business district of Sharq in Kuwait City where it will build and develop a new 160 room freehold hotel. This hotel is in addition to the existing pipeline and is expected to open in 2017.

Action has secured the prime plot and is in advanced discussions with a leading hotel operator targeting the midscale segment of the market. The total price for the land, including commission and registration fees, is approximately $12.3 million.

This four star offering is strategically complementary to the existing two hotels in Kuwait. Action currently has two operating three star hotels in Kuwait City, the freehold ibis Sharq in the Al Hamra business district and the leasehold ibis Salmiya in the heart of the shopping and restaurant district. Both hotels are operated under long-term management agreements with Accor and enjoy high occupancy and the highest gross margins of the all the operating portfolio.

April 2014 occupancy figures for ibis Sharq and ibis Salmiya were 91% and 95% respectively with both hotels ahead of management expectations on all key operating metrics (average daily rate, revenue per available room, gross operating profit). Operational EBITDA (on a like-for-like basis) for ibis Sharq and ibis Salmiya has increased by 23% and 34% respectively in the year to date.

Action believes that the economy and midscale hotel market in Kuwait remains undersupplied and the addition of a four star hotel is an opportunity to target a different intra-regional traveler audience to Action's existing three star offerings.

The proposed hotel will be built close to the 77-floor Al Hamra Business Tower, the tallest sculpted building in the world hosting over 70 floors of offices, luxury shopping mall and multiple F&B offerings.

This hotel is a new addition to Action Hotel's committed pipeline of eight further hotels by the end of 2016 and completion is expected in 2017. The Company intends to fund the development from existing resources.

Action announced an additional 1,500 rooms at its IPO in December 2013 and this further addition to the pipeline will increase the room count to 2,660. The company will continue to pursue opportunistic prime leasing and acquisition targets across the GCC and remains committed to its target of having 5,000 hotels rooms by 2020.

Alain Debare, CEO, said: "We are very excited about the prospect of developing another branded hotel in Kuwait. We have secured an excellent plot of commercial land that is in a prime location within the growing business district of Kuwait City. Obviously this is a country that we know well having completed two hotels that are performing ahead of our expectations to date. "

[richtea1701] 28/5/2014 22:28

Out of interest Mach - not inspired by the business model or the quality of the presentation?

[mach100] 28/5/2014 22:02

Quite a wide spread on this. I went to the presentation and wasn't too inspired. If they fall through the float price they might be interesting if you could catch the bottom. Is the divi safe?

[richtea1701] 27/5/2014 21:30

Nice price point here?

[philanderer] 19/5/2014 16:28

Small caps still totally out of favour.

Just 5 trades here today for 20k shares and the bid`s knocked back by 2p

[philanderer] 06/5/2014 20:36

Just remembered .. xd for the 0.96p tomorrow morning.

[philanderer] 06/5/2014 20:22

Five minutes with: Alain Debare, Action Hotels

06 May 2014.

Speaking from the under construction Premier Inn Sharjah, Action Hotels CEO Alain Debare, explains the developer's involvement in the growth of branded mid-market properties

[philanderer] 02/5/2014 13:34

2nd may Sanlam Securities buy tp 96p

reiteration.

[philanderer] 28/4/2014 23:17

Upcoming event (from the company website)

04 May 09:00 Am

Arabian Hotel Investment Conference, Dubai

[philanderer] 26/4/2014 00:54

HOTELS magazine ‏@HOTELSmagazine Apr 24

EXCLUSIVE interview with Action Hotels CEO on company's Middle East plans

[m.t.glass] 22/4/2014 07:19

Same report from Arabian Business has this morning been circulated by the Brazilian business press across south America. And also north America.

Attention is growing..

[philanderer] 21/4/2014 21:33

Thanks MTG, grateful for any news at the moment.....out in Madeira with a pretty dodgy wifi ;-)

[m.t.glass] 21/4/2014 19:23

(nothing new - just nice to see it in the Arab press)

[philanderer] 17/4/2014 21:48

Would have thought so liam. .....should definitely get progress reports on the new hotels being built as well.

[liamnich04] 16/4/2014 20:17

Do you think we will get any updates along the way, I.e occupancy percentages on a monthly basis?

[philanderer] 14/4/2014 12:15

just the one trade printed today so far..

1,341 @ 75.45p

[liamnich04] 11/4/2014 21:18

75,000 late reported

Holdings RNS next week ? / another director purchase?

[philanderer] 11/4/2014 20:44

Many thanks Aim_Trader.

We`re +1p on the bid over the week on a really bad one for the general market.

[liamnich04] 11/4/2014 16:58

I like this bit

Premier Inn, Sharjah
Action Hotels 2014
•First Premier Inn hotel in our portfolio in advanced construction
•First Management Agreement for Premier Inn
•Mock up room approved by Premier Inn and now progressing to architectural finishes works
•Positive commercial prospects with new demand drivers with hospital being built across the road
•Due to open Q4 2014
•Premier Inn have a JV with Emirates to roll out 10,000 rooms throughout the Middle East
Also a first for Costas
First Costa Coffee in Sharjah located within the hotel

[aim_trader] 11/4/2014 16:25

Action Hotels Presentation April 10th 2014

[m.t.glass] 11/4/2014 10:31

"..I can't believe how "off the radar" this seems,"

Bear in mind it's only been listed since Xmas. Personally I think it has begun to get noticed over the past week or so. But trading volumes I agree are remarkably low.

Whatever happened at last night's little presentation doesn't seem to have prompted attendees to rush out and pile in this morning. I'll be interested to hear feedback from anyone who went along.