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Elegant Hot Share Discussion Threads
Showing 301 to 324 of 325 messages
|Nice to see EHG going from strength to strength, pound rocketing against dollar this past month.
EHG one of the highest yielders at 10%, lovely.|
|I can't see the latest three posts on my mobile, I guess they must be positive, just like the share price:-)Pound strengthening.|
|Would be reassuring to see Sunil and Simon buying some shares. In the IPO they reduced their holdings by up to half so it does not really inspire confidence that they are not purchasing more now. I presume Luke will be seeking Board representation also. The other question is if Vision Capital are still looking to offload their remaining 11m shares and is Luke biding his time until another profit warning to try and buy those shares even cheaper. He seems to be the only buyer around that Vision Capital can find for Elegant Hotels. But not even he wanted all the Vision Capital shares at 69p|
|Seems Luke is well aware of the issues of running hotels longer term. Perhaps his "nimble" plan is take advantage of the debt to EBITDA situation and possible breach of banking covenants. Risk Capital can step in with some convertible loans and keep the company afloat. They can then later convert the debt to equity in a few years time at a much lower price and he can always hedge his personal position by lending his stock to Risk Capital and then with a short on the equity until then they end up owning the company on the cheap and just sell off the property or they could just reverse Neilson in at an inflated valuation. A company which I mentioned the other day and which is also mentioned in the article. Or he could just buy all the Vision Capital shares and make an outright takeover offer now for Elegant if it's so undervalued? Reading his article in the Times today sounds like the latter is not going to happen any time soon. You do have to love the highly regulated AIM casino market!!!
|Good article in today's Sunday Times about investing in hotels and especially this one|
|I also see net debt to EBITDA is now forecast to hit 3.5 times after the second slashing of EBITDA forecasts in the current financial year.|
|LBO - without even commenting on EHG it is not particularly surprising that someone should decide to invest £6.5M (I seem to recollect that was the figure) in a company's shares but decide that is quite enough and not double up and invest £13M!
I still don't get your specific interest in this company. Perhaps your doing a PhD on Barbados tourism!|
|Not sure House or Daphne's is any holy grail of hidden value either. It was noted at the half year results that The House saw RevPAR falls of 7% because of declines in occupancy. Also please read the CBRE valuations properly and were just a snapshot at that time and in their own words "Our Fair Value has been primarily derived using the discounted cash flow methodology". And as we all know the cash flows have been falling since. Also the Daphne's restaurant land still has debt due on it from when it was purchased by Elegant Hotels and the value attributed to Daphne’s as at 15 April 2015 also was just $5.2 million. Also the Daphne’s Restaurant licence agreement has expired. The Group operates Daphne’s Restaurant under a franchise agreement with Caprice Holdings Limited (“Caprice̶1;). The term of this agreement has expired and as a result, the agreement is now terminable by Caprice.
Also please explain how a devaluation in the Bajan dollar to US dollar will be a positive for current holders of Bajan property assets who already bought assets at the inflated currency peg? And Luke has made mistakes and interestingly has not bought all the Vision Capital shares.|
|US$5.46 million of the consideration was paid to Swiss International's holding company, Beach Holdings SA in cash, and Elegant Hotels assumed Swiss International's existing debt of US$12.19 million. A further US$0.35 million was paid to Paynes Bay Ltd ("Paynes Bay") for the business and fixed assets of Waves. Paynes Bay was owned by the current shareholders of Beach Holdings SA and carried out the day-to-day operations of Waves.The expected cost of the renovation and other expenditure related to the transaction was US$4.0 million. The total acquisition and renovation costs of US$22.0 million were funded through additional credit facilities of US$18.5 million as an extension to the Group's existing credit agreement with The Bank of Nova Scotia, an interest-free vendor loan of US$2.0 million repayable over four years, and US$1.5 million of the Group's existing cash resources.|
|Yes, before the £4m capex. They paid £18m for something worth £22m hence the £4m gain. They then spent £4m upgrading it. Total cost = £22m, total value = £26m|
|"The Waves Hotel & Spa property was recently valued by Terra Caribbean at $22.0 million which is the fair value used in the accounts"|
|Take that most recent Waves valuation and apply it to the rest of the Elegant legacy hotel portfolio which totals 483 rooms and you get a value of $152m which is a long way short of the supposed $235.5 million by CBRE as at 15 April 2015.
Alternatively EHG got a good deal on buying Waves and bought it at below market value. The accounts record a $4m gain on acquisition. Applying that to your formula gives $205m overall or 106p a share. Of course that doesn't take account of the higher quality rooms in other hotels so no reason to doubt the company's valuation. To the extent we have a difference of opinion, we have on one side an international firm of property experts/valuers and on the other an anonymous bulletin board poster (no offence)...|
|Luke is unlikely to have made a mistake long term, the question is whether the news over the shorter term is a problem for weak/trading holders.|
|Wave comprises of 70 hotel rooms, whereas the rest of the portfolio comprises of 333 suites and 150 rooms.
I suppose we just ignore Daphnes or accept that Luke Johnston made a terrible mistake, lol.|
|Waves was bought for $18m plus the $4m Cap Ex so valued at $22m. Which when divided by the 70 rooms puts a value of $315,000 per room.Take that most recent Waves valuation and apply it to the rest of the Elegant legacy hotel portfolio which totals 483 rooms and you get a value of $152m which is a long way short of the supposed $235.5 million by CBRE as at 15 April 2015.And adding the legacy hotel portfolio of $152m plus Waves gives total Asset value of only $174m. And Based on net debt of approximately $54.8 million as at 31 March 2016, this would equate to an implied net asset value (NAV) of under $120m. Which gives an NAV of only $1.06 per share which at current exchange rates is only 0.85p per share.And this still applies no discount for the higher Cap Ex still required on the legacy hotel portfolio compared to the new refurbished Waves value and no normal market discount as would be applied to any other Listed hotel shares or property shares.So even without being worried about the recent profit warnings and major cuts in EBITDA forecasts not sure the NAV is as strong or will be supportive as some would have tried to make us believe.|
|Tamarind Black Friday deal:
|Another positive article and plug for Elegant:
although the articles are about a failing property fund (i.e irrelevant to EHG), I appreciate the positive snippets, very positive, if I can pick and choose quotes from your article as you have done:
"The Barbados economy is finally expected to
show some growth this year on the back of
increased tourist arrivals."
Also think there is a devaluation possibility of the local currency - if that happens a great boost for the tourist industry.|
The Fortress Caribbean Property Fund Limited SCC - Development Fund realised a loss of $320,801 for the six months ended March 31st 2016 compared to a loss of $350,638 for the same period in 2015. The net asset value is $0.46 per share down from $0.48 a year earlier. The net assets are $24.91 million compared to $25.23 million for the financial year ended September 30, 2015. There were no asset sales during the six months ended March 31st 2016. The share price of the Development Share on the Barbados Stock Exchange (BSE) as at March 31st 2016 was $0.19, a discount of 58% to the net asset value
|LBO - I have seen your posts over a number of years, i didn't realise you were such a plonker. Regrettably i have decided to add you to the filter list.|
|Elegant themselves mentioned the issue in the market in the interims;
"growth has been in the villa rental segment and at the lower-cost end of the hotel market"
Also the IMF have noted the issues in the Barbados Hotel market also;